How will Brexit affect Spain?
How will Brexit affect Spain?
After the postponement of the vote and Theresa May’s statements, Brexit is back in the news and renews the uncertainties that it has been sowing since the beginning of the British process of disengagement with the European Union, leaving that feeling of instability also in Spain where Brexit will affect in different ways that we analyse today.
Why and how the Brexit will affect Spain
Far from being a problem alien to our society and our businesses, Brexit is also a challenge for Spain and for the entire European Union, which has been affected from the start of the process, suffering falls in the stock market, political and economic instability around the time of the referendum and falls in the IBEX.
In the specific case of Spain, the situation has a much more direct influence, added to the commercial relations that exist between all the countries of the European Union, as our country is home to many British citizens and vice versa, as well as having solid commercial relations, especially in industries such as aeronautics, pharmaceuticals, automobiles and foodstuffs.
Investment: the first concern
In recent years Spain has suffered a series of economic ups and downs due to the crisis and has recovered thanks to investments from other European countries, among other things, with the United Kingdom being the fifth country with the highest volume of investment and totalling 63,000 million euros spent in the last 11 years, operations facilitated by the special conditions between countries of the European Union.
These figures benefit our country especially in times of economic weakness, and will fall sharply when Brexit materialises as the investment facilities granted by the special conditions between EU countries will cease to apply.
Tourism and the real estate sector, two of the main sectors to be affected by Brexit
Brexit will have a notable impact on tourism and real estate in Spain, especially in regions that are popular with the British, such as the Costa del Sol and the Balearic Islands.
On the tourism side, many Britons will no longer be able to visit Spain frequently after Brexit due to new travel requirements, such as the need for a passport and possible restrictions on the length of stays. This will lead to a certain decrease in the number of British tourists, although Spain remains an attractive destination due to its climate, culture and gastronomy. Companies in the tourism sector will have to adapt to these changes and attract other markets.
In the real estate sector, Brexit will generate uncertainty among British buyers looking for property in Spain. Some may reconsider their investments due to new regulations and the fluctuation of sterling against the euro. However, despite these challenges, interest in property in Spain will remain strong, especially among those looking for a place to retire or enjoy a more relaxed lifestyle.
In short, both tourism and real estate in Spain will face new challenges after Brexit, but the adaptability of the market and the beauty of the country will continue to attract visitors and investors.
Gibraltar and daily life
The situation of Gibraltar is one of the most worrying for Spain in reference to the whole Brexit process, as there is a spatially close relationship due to geographical proximity and daily transit across these borders, a complicated issue if the resolution is not well tied between the two countries.
Gibraltar will inevitablyexperience some changes in its daily life after Brexit, although it is expected to remain a vibrant and lively place. The UK’s exit from the European Union will bring with it new regulations and procedures at the border, which will affect residents and those who cross on a daily basis to work or study.
One of the most notable changes will be in mobility. Although Gibraltar will remain part of the UK, the new regulations will make border formalities stricter, which may cause delays. However, the Gibraltarian community will be able to adapt, and many continue to enjoy their lifestyle, which combines British and Mediterranean influences.
In terms of trade, some businesses will have to adjust their operations to comply with the new regulations, but Gibraltar will remain an attractive financial and commercial centre. The local economy will remain resilient, and people will continue to enjoy its rich culture, cuisine and outdoor activities.
In short, although there will be challenges after Brexit, everyday life in Gibraltar will remain vibrant and full of opportunities. The community is very adaptable and will continue to celebrate its unique identity. If you have any further questions or need specific information, we will be happy to help!
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