Brexit. What does it mean for Britons moving to Spain?
- By admin
It’s now January 2021. As we say goodbye to the nightmarish year of 2020, the United Kingdom is also saying goodbye to the European Union. It’s official, Brexit has happened and certain things will be different for Brits from now on.
As an English run company based on the Costa Del Sol in sunny Southern Spain, the British market remains one of our important client bases, alongside the ever attracted Scandinavians.
So now that the UK has left the EU, what are the options for Britons looking to purchase property in Spain?
First of all, we should point out that Brits are still able to purchase properties in Spain, all is well on that front. What has changed is the length of time you are able to spend continuously in Spain, or any other EU country.
From now on, you can only spend up to 90 days out of every 180 in the Schengen Area. You will then not be able to return to the Schengen Area until 180 days have passed since your date of entry into Spain (or elsewhere in the Schengen Area). However you can divide the allotted days into ‘chunks’ as you like, ie. two lots of 45 days.
It is important to note that the 90 day rule also applies even if you are a current homeowner. Spain may, of course, introduce new legislation to favor British property owners and allow them to spend longer periods of time in the country. However, at present, the government has not announced any new rules.
There are a few ways around this though….
The Golden Visa is perhaps the best known option for some expats looking to acquire residency in a foreign country. Whilst each country has varying requirements for its’ Golden Visa program, in Spain it’s currently set at a minimum investment of 500,001€. This can be on a single property purchase, or several, what’s important is the end value. Please note this value DOES NOT include property purchase taxes.
So what are the advantages of the Golden Visa?
As a Spain Golden Visa holder, you have the freedom to travel around the Schengen area. This basically means that you can spend Saturday having lunch in Paris, Sunday shopping in Milan and be back home for work or more relaxing on Monday.
The Golden Visa also allows you to include your family so they can get residency in Spain as well. Your spouse and children under the age of 18 are guaranteed residence permits.
Having an alternative residence for your family is always a smart idea to secure your family life with a ‘Plan B’. It can always come in handy!
In order to be eligible to apply for a Golden Visa in Spain, you must:
Another option to consider is the Non-Lucrative Residence Visa. If you are planning to move to Spain and not working in the country (at least for the first year), or to retire in the country, this will be your best option.
The non-lucrative residence visa one of the different types of Spanish visas granted to non-EU citizens who have enough economic means to stay in the country without working. As that is also true for the applicant’s relatives, you can also bring your family with you. This allows you to live in Spain for one year, after which point it can be renewed every two years until you can gain permanent residency in Spain, after 5 years.
Please note however that, at least for the first year, it does not allow you to carry out any type of economic or professional activity in Spain. In other words, you cannot work for any company operating in Spain.
Also, as with the Golden Visa, it will allow you to travel through the Schengen territory with total freedom.
One of the main requirements as we mentioned is that you must have enough money to cover all your costs accrued during your stay in Spain.
You must prove that you have 400% of the IPREM (social security payment) annually on your bank account. For the year of 2020, the IPREM was 537,84€ per month. Based on this measurement unit, the target would be 6.454,03€.
That is, the main applicant for this visa must demonstrate he or she has a minimum amount of 25.816,12€. Nevertheless, we of course suggest you have a bit more than that if you would like to have a successful application. not to mention legal proof of funds from your bank or accountant.
Finally, we discuss the taxes you will have to pay with this visa in Spain.
First of all, because this residence card requires you to stay a minimum of 183 days a year in the country to renew, you will become a tax resident.
Now before we completely bamboozle everyone with facts, figures and different schemes, let’s just quickly summarize and say that nothing much has really changed. Brits can still buy property in Spain, they can still spend a fair amount of time in their properties and depending on the investment made or scheme chosen, some can be a permanent resident.
PLEASE NOTE THAT WHILST THE INFORMATION IN THIS ARTICLE IS CORRECT, WE DO ALWAYS ADVISE CONSULTING WITH A LAWYER
So if you are looking for a property on the Costa Del Sol, look no further than the Verdin family.
Don’t forget as well to follow us on social media and subscribe to our YouTube channel to see all our fantastic properties and videos as they go live!