We have of course been following the referendum very closely, to see how the exit vote is likely to affect the relationship between Spain and the UK and we can see no real reason why anybody in the process of or thinking about purchasing should have any concerns. Overall, there has not been any panic from people who are currently in the process of purchasing property here and perhaps a little surprisingly, people seem to be taking it in their stride. We have just experienced record sales during our busiest winter period for many years since the referendum.
It appears that the UK may suffer a self-imposed recession initially and the pound has already dropped in value by a fairly significant amount. Many experts predict that the pound will drop further in the short term before it starts to gain ground again. This is of course a negative for the UK, but when you think about this, it is a positive for those people that have euro assets, such as property here in Tenerife! If a British purchaser is buying a property from another British owner in Pounds, which is perfectly proper, then of course the exchange rate at the time is irrelevant but the asset would be valued in the stronger European currency.
It should be remembered that it will take two years for Britain to negotiate its exit from the EU and during that time Britain will still be a contributing member and nothing will change. Everything between Spain and the UK will continue as it is now and it is only the UK economic situation that will change, simply because of future economic uncertainty.
390,000 people from the UK currently live and work in Spain, contributing substantially to the Spanish economy and there are many thousands of business owners, like us, who between them employ tens of thousands of people. Spain will not wish to do anything to affect that. Hundreds of thousands of British people have bought property in Spain and its islands, sustaining tens of thousands of jobs in the construction and associated industries, with a great deal of taxes being paid in relation to this. Spain will not wish to do anything to affect that. Also, millions of British holidaymakers go to Spain and its islands every year and contribute massively to the Spanish economy and Spain would really be in trouble without its main tourist industry from the UK. Spain will not wish to do anything to affect that.
We don’t yet know the terms of any "Brexit". Nor has it been established that any arrangements currently enjoyed with Spain through EU membership could not be maintained by agreements made after Britain’s withdrawal. In fact, there are many precedents for such agreements existing between EU and non-EU nations. In our opinion, the simple fact is that from an economic standpoint, Spain will wish to keep the status quo with the UK.
You should not be discouraged from continuing with your dream of purchasing a property here in the sun, as we are sure it will be a good investment that is not only economically sound, but will also give you an enhanced lifestyle in the future, which you cannot put a price on.
I hope our thoughts are of some help to you and if you want any more information, then please do not hesitate to contact us.
