Still reigning in Spain
BRITONS may still be able to retire to popular EU hotspots such as Spain and Portugal despite Brexit, but they have to jump through more hoops to do it.
Millions facing sky-high fuel bills as winter drags on will be tempted by thoughts of a retirement in the sun, so what do you need to do?
Britons may now be classified as non-eu citizens but that hasn’t stopped them buying Spanish properties, new figures from specialist builder Taylor Wimpey España show.
Sales and marketing director Marc Pritchard said that while many are buying holiday homes, a growing number of people want full-time residency to work or retire in the sun: “Demand is incredibly strong, even as new Omicron travel restrictions are imposed.”
Britons can visit Spain without a visa but can only stay for a maximum of 90 days in any 180-day period.that is less than six months a year.
For longer stays, you can apply for something called a non-lucrative residence visa, which is also called a non-profit or retirement visa.
This allows non-eu citizens to live in Spain provided that they do not carry out any economic or professional duties in the country.
You can still earn income from abroad, say, from a pension or rental property.this has to total at least €27,115.20 (£22,890)
a year.you will need to demonstrate another €6,778.80 a year for every family member who joins you.
These limits vary according to the country. For example, Portugal only demands that you match its minimum wage of €7,980 (£6,735 a year) for an individual and €11,970 (£10,103) for a couple.
You also need to check whether you qualify for free local healthcare.typically, if you receive the UK state pension, you will, by completing form S1 (find out more at gov.uk).
Britons who take early retirement may have to take out medical insurance.
Another way to get permanent residency is to apply for a Goldenvisa.to qualify, you need to buy a Spanish or Portuguese property for at least €500,000 (£421,872). This also opens up the entire Schengen zone to you once more.
Take specialist advice as you have to buy the property first and cannot risk seeing your Goldenvisa application turned down afterwards, said Mark Wilkins, a consultant with ROS Abogados in Marbella.
If you live in Spain for 183 days a year or more, you may have to pay Spanish tax on your worldwide income. “Some expats will be happy with that, and can then stay in the country year-round,” Wilkins said.
Next year could bring a new stumbling block, warned Jason Porter, business development manager at international advisory firm Blevins Franks. He said: “Most UK pension plans are exempt from Spanish wealth tax but that could change next year as a result of Brexit.”
For those worried, one option would be to transfer their pension to one in an EU country such as Malta. “We will know more about whether this is necessary next summer,” Porter said.
The retirement in the sun dream lives on, but Britons will have to work harder to make it a reality.