#EmbraceSpain XV: Growth and good relationships to mitigate effects of Brexit

#EmbraceSpain XV: Growth and good relationships to mitigate effects of Brexit

The economies of Spain and the United Kingdom have good prospects for growth in 2017 and continue to maintain good commercial relations before the imminence of Brexit.

In 2017 Brexit will set the agenda, according to numerous experts and for this reason, we continue our campaign #Embracespain to help strengthen the bilateral trade relations between Spain and the United Kingdom.

The economic data given, offer good hope. In the Spanish real estate market, the new housing closed 2016 with a growth of 3.3% and are a sample of the words of our Managing Partner, Leon Fernando del Canto wrote, in the Expat Network magazine, pointing out our country as a preferred destination for Investment in this sector.

The same has happened with the M&A market, which has grown around 20% throughout the year. Growth is also seen in the United Kingdom, where manufacturing reached its best in thirty months and where the real estate market is expected to continue in positive results in 2017. In addition, London begins to restructure its investment strategy and focuses on markets Asian and Middle Eastern countries such as Qatar.

The good perspectives of Spain and Britain are not an isolated case. Europe is waking up and economic activity in the Eurozone has reached its highest level since 2011 despite the uncertainty provoked by the Brexit still lurking.

In the tax area, the recent judgment of the CJEU on land clauses has caused Spanish banks to turn their strategy to deal with a lot of returns that will have to be made to their clients: it will increase the loans and encourage the purchase of fixed term mortgages instead of mortgages to variable place.

Another legal consequence of this ruling has been to also protect the claim of mortgage expenses such as the payment of the tax of documented legal acts, registration or notary services.

On the other hand, the Spanish Ministry of Justice could propose the extension of the IRPF box in the declaration of income to other religions of notable implantation in Spain as Islam or evangelical and Orthodox Christianity. Currently, the Catholic Church already enjoys this box whereby its faithful can allocate part of the taxes they pay to their funding.

Without leaving the fiscal section, in the UK the government has empowered the HMRC to publicly identify and name all those who facilitate tax evasion for both individuals and companies. This is the first time that the British Treasury can file civil sanctions against tax evaders and their accomplices.

When we started our #EmbraceSpain campaign there was only uncertainty about Brexit, to the point where it was hiding the rebound that the British and Spanish economies were giving. Now the economic situation is more promising and uncertainty has certainly not disappeared but has lost its surprise factor.

Strategies for negotiations with the EU are already profiled on both sides of the Canal and whatever happen will have a lesser impact with continued economic growth and good relations on both sides of the board. Events that we will be aware of from our blog and our social networks like Twitter and Linkedin.

Xavier Nova (@xavinova)

Director of Del Canto Chamber

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