Is it a good idea to invest in a property after Brexit?
Is buying property in Ibiza a safe investment? Is it a smart choice? Can you visit frequently, rent out your new home, or even relocate to the island permanently? Will you need a visa? These are some of the most common questions we hear from our UK-based clients eager to invest in Ibiza’s property market. To address these concerns, we’ve created this comprehensive guide to help you navigate the process of buying property in Ibiza post-Brexit.
Buying Property in Ibiza Post-Brexit: Is It Still Possible?
Yes, absolutely! The Spanish government continues to actively encourage international buyers, including British citizens, to invest in Spain. While some rights for expats have changed since Brexit, these changes have not significantly affected international property purchases, especially for second-home buyers.
When it comes to buying a property in Ibiza or anywhere in Spain, the process remains largely the same. However, living in Spain or spending extended periods of time on the island as a non-EU resident now comes with certain regulations and limitations. That said, there are practical solutions to these issues, and if you decide to relocate permanently, there are pathways to full-time residency – which we’ll explore later.
Does Ibiza’s Property Market Remain Resilient Post-Brexit?
Definitely! Ibiza has proven to be a prime destination for second-home buyers and those seeking to relocate, cementing its reputation in recent years. During the pandemic, a surge in property sales highlighted the growing demand for lifestyle investments, and this momentum has continued into 2024. With property prices remaining resilient and demand consistently outstripping supply, Ibiza offers a stable and secure investment environment.
For a detailed look at why 2024 remains a favourable time to invest in Ibiza’s property market, explore our in-depth analysis: Is 2024 a Good Time to Buy a Property in Ibiza?
Taxes and Costs to Consider When Buying Property in Ibiza Post-Brexit
Your nationality does not impact the purchase price of a property in Ibiza, and UK citizens are not subject to additional fees post-Brexit. However, the process of buying property in Spain differs from that in the UK and involves specific taxes and fees applicable to both residents and non-residents. These include:
- Purchase Tax (Impuesto de Transmisiones Patrimoniales or VAT for new builds)
- Notary Fees
- Property Registry Fees
- Miscellaneous Administrative Expenses
A Spanish notary oversees the process to ensure the property is correctly registered in your name. Notary fees, regulated by the government, vary depending on the property’s value and the complexity of the transaction.
For a comprehensive overview of these costs and the buying process, visit our Buyer´s Guide: How to buy a Property in Ibiza
Can I Visit My Ibiza Property Without Issues Post-Brexit?
Travelling between the UK and the EU has become less seamless post-Brexit, but it remains manageable. If you plan to spend considerable time each year at your second home in Ibiza, it’s essential to understand the new limitations.
These restrictions apply across the entire EU but allow you to move freely within the Schengen Area without border control. For UK citizens, the short-stay rules are consistent with those for other non-EU nationals. Generally, these limitations mirror the pre-Brexit travel rules, ensuring short-term visits are still straightforward.
Understanding the 90/180-Day Short-Stay Rule
UK citizens can stay in Spain and the Schengen Area for up to 90 days within any 180-day period. This rule allows you to travel freely across participating Schengen countries, including Spain, without border checks.
For instance:
- If you arrive in Ibiza on 1st May, you could stay continuously until 29th July (90 days).
- After this, you’d need to leave the Schengen Area until 1st November to reset the 180-day cycle.
For short-term visits like weekend breaks or summer holidays, the rules remain largely unchanged. To help you effectively plan and manage your stays within the Schengen Area, you can use the Schengen Visa Calculator. This tool allows you to track your days and ensure you comply with the 90/180-day short-stay rule.
Can I Stay Long-Term or Become a Permanent Resident in Ibiza?
Yes, it’s possible! The Spanish government has designed visa pathways specifically for non-EU residents who want to stay longer.
Popular Visa Options
- Non-Lucrative Visa: Ideal for retirees or individuals not seeking employment in Spain. Applicants must demonstrate a bank balance of at least €34,000 (for six months) and have private health insurance. The visa is valid for one year and can be renewed.
- Golden Visa: For those investing €500,000 or more in Spanish property. This visa allows you and your family to live in Spain and offers a pathway to permanent residency after five years. Citizenship is possible after ten years.
Learn more about visa options and residency requirements in our Immigration Guide!
What Are My Options for Renting Out My Property for Tourism?
You can rent out your Ibiza property to tourists, but there are a few considerations:
- Tourist Licences: Not all properties in Ibiza qualify for short-term tourist rentals. The application process is stringent and requires compliance with local regulations.
- Tax Rates: Non-EU residents are subject to a 24% rental income tax, higher than the 19% rate for EU citizens.
Where to Begin Your Property Search in Ibiza and Find the Right Support
In Ibiza, the White Isle of endless possibilities, finding your dream property becomes a reality with the right guidance and support. Partnering with a trusted, experienced real estate agent is essential to navigating the market smoothly and effectively. At Prestige Properties, we pride ourselves on delivering expert service tailored to your needs.
We are proud to be affiliated with the API Ibiza Association, collaborating closely with over 20 of the island’s most professional agencies. This partnership ensures that we stay informed, up-to-date, and compliant with all legal standards throughout your property journey.
Are you interested in discussing the current Ibiza property market or exploring investment opportunities?
Feel free to contact us today. Our team is here to guide you through every step of your property journey and provide valuable insights into Ibiza’s real estate potential.
