Blog on Spanish law

BREXIT AND SPAIN: TWO MONTHS LATER

WHAT WOULD AN EVENTUAL BREXIT MEAN FOR THOSE BRITISH THAT WANT TO BUY PROPERTY IN SPAIN?

How would it affect British people who own properties in Spain? And those who are in the process of buying them?

It is too early to know what is going to happen but the more immediate effect is the depreciation of the sterling pound. If you already own property in Spain then no need to panic and as the old saying states: Keep calm and carry on!

If you are planning to buy a property in Spain or have fallen in love with a specific villa and do not want to wait until there is more certainty about the future of the UK in the European Union, you can compensate the depreciation of the sterling pound with some measures. Below you will see some examples:

1. You could offer to pay the purchase price in Sterling pound. This may prove interesting for the seller, especially if it is a British seller (something not that unusual these days). By doing this you will not be exposed to the depreciation of the pound and you will not pay a higher price for the property in Spain.
2. If the above is not possible, you should then use a foreign currency broker who will be able to buy the Euro for a more favourable rate than the one offered by your High Street bank. Unless you are a High Net Worth Individual who has the privilege of having a bank account with a private bank, in which case you may get a similar rate to the one offered by a Foreign Currency broker.
3. Finally, the economy in Spain and in the UK are not that stable. Use this point to negotiate a reduction in the price. In spite of an increase in property demand in certain areas of Spain, the property market is still far from recovered and the current economic and political uncertainty could help to get a substantial reduction in the price that could compensate the money that you may lose with the depreciation of the sterling pound.

These are just a few recommendations. Obviously, don´t forget to instruct an independent lawyer for your purchase. Whether is Antonio Guillen and Claudia Font at Gunnercooke LLP (or another lawyer) do not make the mistake of using a lawyer recommended by an estate agent or the seller because that could lead to a conflict of interest and eventually to a problem.