Buying a holiday home in Spain: Pre-Brexit
Before diving into the current landscape, let's rewind to the pre-Brexit era when the United Kingdom was still a member of the European Union (EU). During this time, UK citizens enjoyed certain privileges, including the freedom to purchase property in Spain without extensive bureaucratic hurdles. The process was relatively straightforward, with many Britons flocking to popular destinations like the Costa del Sol or the Balearic Islands to fulfil their Mediterranean dreams.
Brexit and the Spanish property market
With Britain's departure from the European Union in early 2020, many potential buyers were left wondering about the implications of Brexit on their property investments in Spain. Initial concerns triggered fluctuations in property prices and British buyers were faced with new considerations such as changes in residency requirements and potential visa implications. However, despite these challenges, the market has since stabilised and Spain remains an attractive destination for holiday home buyers, thanks to its favourable climate, affordable property prices, and robust rental market.
Pandemic challenges
It wasn’t just Brexit that brought change to the Spanish property market, the onset of the COVID-19 pandemic brought unprecedented challenges to the process of buying a holiday home in Spain too. Travel restrictions, lockdowns, and uncertainty surrounding international travel disrupted property transactions and deterred prospective buyers from visiting the country.
Moreover, stringent quarantine measures and border closures made it difficult for buyers to carry out property viewings and finalise property purchases in person. However, as the situation gradually improved and travel restrictions eased, the Spanish property market has seen a resurgence in activity, with pent-up demand driving renewed interest in holiday home sales.
Navigating post-Brexit regulations
With Brexit's culmination, the dynamics of buying property in Spain underwent big changes. UK citizens are now classified as third-country nationals, meaning they have the same rights as non-EU countries such as the US, Canada, Australia, and New Zealand, and they’re subject to stricter regulations and administrative procedures.
While buying a holiday property in Spain is still 100% possible, potential buyers should be aware of the permitted stay limits.
How long can I stay in Spain?
One of the key considerations for prospective holiday home buyers in Spain is understanding residency and stay limits. Non-EU citizens are subject to specific rules regarding residency and the duration of stays in Spain.
People are currently permitted to spend up to 90 days within a 180-day period in Spain without requiring a visa. This means you can spend 90 days during the summer and another 90 days over the winter, as long as you return to your home country in between and don’t combine the two 90-day stays.
While this may initially seem restrictive, it's important to note that periodic short visits to your Spanish holiday home can easily fall within these limits. By planning shorter stays throughout the year rather than extended visits, buyers can adhere to residency regulations without the need for a visa.
This leads us to our next topic – co-ownership – an excellent way of buying a holiday home in Spain that enables you to invest in a portion of a property to match the amount of time you’d like to spend there.
Co-ownership: Buy a holiday home in Spain the smart way
In light of evolving regulations and changing market dynamics, co-ownership presents an attractive option for those eyeing a holiday home in Spain. Co-ownership allows you to buy a fraction of a property, share the financial burden, reduce risk, and maximise utilisation while enjoying the perks of owning a slice of Spanish paradise.
Companies like MYNE, VIVLA, and &Hamlet specialize in facilitating co-ownership arrangements, offering investors a hassle-free approach to owning a holiday home in Spain. By sharing ownership with other investors, individuals can enjoy the benefits of having a holiday home in Spain, without the financial burden of sole ownership.
10 Reasons to co-own a holiday home in Spain
There are lots of advantages to co-owning a holiday home. Let’s take a look at some of the ways co-owners can benefit:
- Shared costs: Co-owning a holiday home in Spain allows you to split the initial purchase price, as well as sharing ongoing expenses such as maintenance, property taxes, and utilities. This can greatly reduce the financial burden compared to owning it solely.
- Risk mitigation: Sharing ownership spreads the risk associated with property ownership. If there are any unexpected expenses or downturns in the rental market, you won't bear the full brunt of these challenges alone. Equally, by investing in fractional ownership, you can diversify your property portfolio and reduce the risks associated with sole ownership.
- Increased usage: Co-owning ensures that the holiday home is used more frequently throughout the year. Each owner can schedule their holidays or rental periods, maximising the property's occupancy and enjoyment.
- Flexible holiday time: Co-ownership offers flexibility in terms of property usage, allowing each co-owner to schedule their holiday time according to their preferences. This ensures equal access to the property while accommodating everyone’s preferred dates.
- Access to premium locations: Co-ownership may allow you to afford a holiday home in a more desirable or premium location that might have been out of reach individually. This could mean a beachfront property or one in the heart of a sought-after destination.
- Enhanced amenities: By pooling resources, co-owners may be able to afford more luxurious amenities or upgrades for the holiday home, such as a private pool, spa facilities, or high-end furnishings, enhancing the overall experience for everyone involved.
- No maintenance worries: Maintenance, repairs, and upkeep responsibilities are handled by the co-ownership provider, completely removing the burden from the co-owners. This is especially beneficial for those who can't dedicate significant time to property management.
- Potential for rental income: Depending on the provider, some co-ownership properties allow co-owners to rent out the weeks they aren’t using themselves. This enables you to generate rental income which can help offset ownership costs.
- Easy to sell your share: If your circumstances change, it's often easier to sell your share of the property than it is to sell an entire holiday home. This flexibility can provide peace of mind and financial liquidity.
- Professional management: Companies like MYNE, VIVLA, and &Hamlet specialize in facilitating co-ownership arrangements in Spain, helping you to find your dream property, providing comprehensive management services to streamline property ownership, and supporting you if you decide to sell. Their expertise ensures a hassle-free experience for co-owners, maximizing the enjoyment of your investment.
Buy a holiday home in Spain with confidence
Despite the challenges posed by Brexit and the pandemic, the Spanish property market remains resilient, offering buyers a wealth of wonderful opportunities such as co-ownership.
Excited to find out more about co-owning a holiday retreat in Spain?
Explore handpicked Providers specialising in Spanish properties and prepare to be wowed by our curated collection of Spanish Co-ownership Listings.
