Advice please - Page 4

Cazp2307 wrote on Sat Feb 15, 2020 2:35pm:

Hello Lisa :-)

I hope you do not mind me jumping on your post, but I too had the same sort of queries and have just located this Mojacar forum and found it's contributors so helpful and informing.

Read more...

My husband and I have been talking for over 10 years about purchasing a holiday home in the sun, but financially can only just realise this dream now. We are both mid fifties and still living and working in the UK, so will not be in the position to retire and live permanently in Spain for a number of years yet, but want to buy our own property, so that we can hop over for long weekends, the odd week away and let our children use it for their family holidays too. 

I have read so many threads on different forums about what you can and cannot do, and Brexit has added more complications but I am still not sure, so wondered if anyone can advise in simple terms.

1) Our first thought was to rent somewhere in the area for a while before making a decision on where to purchase, but I am sure that I have read that it is advisable now to purchase a property in Spain before December 2020 - as after that time there will be more restrictions on non EU members purchasing there.... or have I got this wrong? 

2) If we buy a property in Spain and personally use it for less than 6 months continuously a year - i.e. long weekends / week here and there - would we have to apply for residency? If not .... would letting our children use it at different times to us make a difference / as in would it have to be a family residency or would each member of our family have to apply?

3) If residency is obligatory .... Can anyone advise about having to prove that you can 'afford' to live there ... people have quoted different figures.... We would be purchasing with cash, so no mortgage and then fund the monthly community /utility /insurance /service charges from our UK earnings by transferring the money or is that a problem? We would be taking /asking nothing financially of Spain , but funding our lifestyle there from our UK money........

4) Has anyone recently purchased in the area and could give me a 'heads up' on the do's and don'ts of buying in Spain - I read somewhere on this forum that one contributor said 'Do it once and Do it right' and am trying to gain as much knowledge as possible by reading people's experiences, good and bad, taking on board their good advice, and trying to avoid any obvious pitfalls - we have spent so long, saving so hard, for our piece of Spanish Heaven, that I don't want to end up with a piece of Spanish Hell !! 

I have made notes of people's recommendations for 'honest' estate agents, lawyers / solicitors etc and read with interest peoples views on areas/resorts in Almeria. We are travelling out next month to see for ourselves and get an idea of what's available to buy in our price range,

 in our preferred areas, to hopefully make a final decision before we take the plunge, so for anyone that cares to respond I thank you warmly in advance.

Regards, Carole.

chrisso50 wrote on Sat Feb 15, 2020 11:10pm:

Hi Carole

The Brexit Withdrawal Agreement has done a reasonable job for existing legal residents in Spain, but it's a bit of a downer for ‘swallows’. Swallows being those non-residents that like to come out here in the winter for six months at a time. And for those UK citizens wishing to mov...

Read more...

...e here permanently after the end of transition in December 2020, if they are on modest incomes, it’s a disaster.

As Gary points out, if you just want a holiday home here then Brexit is no impediment as you can stay for up to 90 days in every 180. 

I will try and respond to your various points:

“We will not be in the position to retire and live permanently in Spain for a number of years yet, but want to buy our own property, so that we can hop over for long weekends, the odd week away and let our children use it for their family holidays too.”

You will have no problem using your property for holidays - the only rule will be to ensure you don’t exceed the 90 days in every 180 period. For other family members they will have to abide by that rule themselves so no reason why your property can’t remain occupied by someone or other all the time.

1) “I have read that it is advisable now to purchase a property in Spain before December 2020 - as after that time there will be more restrictions on non EU members purchasing there”

Correct. The restrictions are as regards tax and inheritance if you buy after the Transition period ends. Consult a lawyer about this but basically whilst your property falls within U.K. inheritance law at present it won’t if you buy after 2020, also the tax rate for non- residents will be more after Transition ends.

2)If we buy a property in Spain and personally use it for less than 6 months continuously a year - i.e. long weekends / week here and there - would we have to apply for residency? If not .... would letting our children use it at different times to us make a difference / as in would it have to be a family residency or would each member of our family have to apply?”

No. Only apply for residency if you plan to spend the majority of your time here in Spain, i e 6 months + 1 or183 days. And residency is based on the individual citizen, not the family per se. 

3) “If residency is obligatory .... Can anyone advise about having to prove that you can 'afford' to live there ... people have quoted different figures.... We would be purchasing with cash, so no mortgage and then fund the monthly community /utility /insurance /service charges from our UK earnings by transferring the money or is that a problem? We would be taking /asking nothing financially of Spain , but funding our lifestyle there from our UK money.”

Residency is only obligatory if you are basing yourself in Spain, spending more than 90 days in each 180 days here. If that happens - and you suggest it is s future wish - you will find that after Transition ends you will need to demonstrate to Spain that you have four times the annual income that you need to show you have now. You would also need to demonstrate that you have health care cover: anyone currently of U.K. state retirement age (in receipt of a U.K. state pension) can satisfy this and receive free Spanish health care. Others have to utilise private insurance or the Convenio Especial.  This could be a more significant factor after the Transition period ends.

Good luck in your search!

Chris

Murphys Mam wrote on Tue Feb 18, 2020 6:11pm:

Hi Carol, of course I don't mind, good to know we are not alone in our questions.  Replies have been really useful. :)

Cazp2307 wrote on Tue Feb 18, 2020 10:52pm:

Evening chrisso50

Thank you so much for your excellent reply post which makes a lot of my queries so much easier to understand :-)

Read more...

You are a 'Fountain of Knowledge! ' 

Sorry to be appear naive but..... could you clarify??

The 90 day in 180 rule......... Is this between specific dates ??

 As in ....1st January to 31st Dec ( 90 out of 180 days x 2 periods) or is it from when you enter Spain for the 1st time....during anytime in the year...and rolls on continuously ??

Many thanks,

Kind regards

Carole

chrisso50 wrote on Sat Feb 15, 2020 11:10pm:

Hi Carole

The Brexit Withdrawal Agreement has done a reasonable job for existing legal residents in Spain, but it's a bit of a downer for ‘swallows’. Swallows being those non-residents that like to come out here in the winter for six months at a time. And for those UK citizens wishing to mov...

Read more...

...e here permanently after the end of transition in December 2020, if they are on modest incomes, it’s a disaster.

As Gary points out, if you just want a holiday home here then Brexit is no impediment as you can stay for up to 90 days in every 180. 

I will try and respond to your various points:

“We will not be in the position to retire and live permanently in Spain for a number of years yet, but want to buy our own property, so that we can hop over for long weekends, the odd week away and let our children use it for their family holidays too.”

You will have no problem using your property for holidays - the only rule will be to ensure you don’t exceed the 90 days in every 180 period. For other family members they will have to abide by that rule themselves so no reason why your property can’t remain occupied by someone or other all the time.

1) “I have read that it is advisable now to purchase a property in Spain before December 2020 - as after that time there will be more restrictions on non EU members purchasing there”

Correct. The restrictions are as regards tax and inheritance if you buy after the Transition period ends. Consult a lawyer about this but basically whilst your property falls within U.K. inheritance law at present it won’t if you buy after 2020, also the tax rate for non- residents will be more after Transition ends.

2)If we buy a property in Spain and personally use it for less than 6 months continuously a year - i.e. long weekends / week here and there - would we have to apply for residency? If not .... would letting our children use it at different times to us make a difference / as in would it have to be a family residency or would each member of our family have to apply?”

No. Only apply for residency if you plan to spend the majority of your time here in Spain, i e 6 months + 1 or183 days. And residency is based on the individual citizen, not the family per se. 

3) “If residency is obligatory .... Can anyone advise about having to prove that you can 'afford' to live there ... people have quoted different figures.... We would be purchasing with cash, so no mortgage and then fund the monthly community /utility /insurance /service charges from our UK earnings by transferring the money or is that a problem? We would be taking /asking nothing financially of Spain , but funding our lifestyle there from our UK money.”

Residency is only obligatory if you are basing yourself in Spain, spending more than 90 days in each 180 days here. If that happens - and you suggest it is s future wish - you will find that after Transition ends you will need to demonstrate to Spain that you have four times the annual income that you need to show you have now. You would also need to demonstrate that you have health care cover: anyone currently of U.K. state retirement age (in receipt of a U.K. state pension) can satisfy this and receive free Spanish health care. Others have to utilise private insurance or the Convenio Especial.  This could be a more significant factor after the Transition period ends.

Good luck in your search!

Chris

Dave777 wrote on Mon Jun 29, 2020 5:11pm:

Hi Chris, can I just clarify something with regard to healthcare. We were hoping to retire to Spain early next year but private healthcare costs after Brexit have put us off. As I am in receipt of a UK pension are you saying reciprocal health care will continue? I was under the impression this st...

Read more...

...ops 1 January and we have to provide proof of private healthcare to rent long term or buy in Spain.

Dave777 wrote on Mon Jun 29, 2020 5:11pm:

Hi Chris, can I just clarify something with regard to healthcare. We were hoping to retire to Spain early next year but private healthcare costs after Brexit have put us off. As I am in receipt of a UK pension are you saying reciprocal health care will continue? I was under the impression this st...

Read more...

...ops 1 January and we have to provide proof of private healthcare to rent long term or buy in Spain.

Gary59 wrote on Mon Jun 29, 2020 8:21pm:

Hi,

Regarding healthcare post Brexit. It is true that the reciprocal agreement will come to an end. 

Read more...

However, there is light and options at the end of the tunnel! If you become resident in Spain post Brexit, you will be required to have health Insurance in place. But after you have lived there for a year, you become eligible to pay into the Spanish state healthcare system (So could ditch the insurance). This them becomes an affordable alternative to healthcare insurance whereby premiums will rise with age. I obtained this Info from a reliable source whilst tuning into a couple of webinars on this and similar subject matter. Best wishes and good luck with your retirement plans.

chrisso50 wrote on Fri Feb 7, 2020 9:26pm:

Yes. It’s 90 days in every 180 days, and in a rolling format. There is a calendar available online, to work it out.

Chris

DarioMartin wrote on Mon Jun 29, 2020 8:38pm:

You can indeed pay into Convenio Especial after 1 year, but I have seen posts from others who have actually done that or at least investigated it, that it may not cover pre-existing health conditions, and you may be left out of some of the Spanish health system benefits.  Would love to hear ...

Read more...

...from anyone on Convenio Especial regards this.

Convenio Especial is like a “Health System Lite” As I understand it - and my understanding is quite probably wrong!! - but certainly cheaper I believe than Health Insurance