Proposed tax hikes on Brits buying properties in Spain will boost interest in the Florida homes market, a leading expert has said.
Under new plans, those purchasing in Spain face being hit with the full price of the house when they complete a transaction.
Spain’s Prime Minister is behind the idea, which aims to limit the number of homes being sold to foreigners.
But Property expert Alastair Brown says the move is already leading to many Britons turning their attention to Florida.
SIGNIFICANT SHIFT
He says: “These changes to Spain’s tax laws will lead to a significant shift in demand towards Florida, not least because property prices remain favourable and tax implications are far less burdensome.
“Spain has long been a favourite destination for British property buyers, but these proposed tax hikes could change that landscape dramatically.”
Brown, the Chief Executive of the ABI Group, a real-estate agency specialising in property for sale in Florida, adds: “Florida, on the other hand, offers a more favourable tax environment, stable house prices, and fewer financial barriers to entry.
“We expect many Britons who were considering buying a property in Spain will look at alternative destinations, such as Florida.”
Under a new proposal non-EU citizens – such as Britons – who do not have legal residence in the country will face a tax bill equaling 100% of their property’s value when purchasing in Spain.
This drastic increase in property taxes is expected to push many British buyers away from Spain’s traditional appeal as a popular holiday and second-home destination.
For many Britons who already face higher living costs and financial uncertainty due to post-Brexit changes, this new tax proposal could be a dealbreaker.
TAX BENEFITS
Brown adds: “Florida offers favourable tax benefits for Britons, particularly due to its lack of a state income tax.
“This means that residents of Florida do not pay state income tax on their earnings, which can be a significant advantage for those looking to reduce their overall tax burden.
“Additionally, Florida has relatively low property taxes and no inheritance or estate taxes, making it an attractive destination for British expatriates seeking tax-efficient living.
“Florida is undoubtedly the ultimate holiday home destination. With its year-round sunshine, world-class attractions, and strong rental potential, it’s no surprise that so many Britons are choosing to invest there.
“It offers not just a property but a lifestyle, with the added bonus of a favourable tax environment that Spain can no longer match.”
