Why 2021 Is A Good Time To Buy Property In Spain

If you are thinking of securing your own slice of paradise in Spain, you’re not alone. Post-Brexit and COVID-19 have many people thinking more about lifestyle, and the desire to live somewhere with more space, both indoor and outside, should another pandemic occur in their lifetime. Europe is the obvious choice too, as it’s just a quick plane trip to get back home if required.

Did you know Spain is home to 360,000 British? For ex-pats, it’s hard to give up their new lifestyle, and for those wishing to leave the UK for a more affordable lifestyle and better weather, Spain is an attractive option for relocation.

In this article, we look at why Spain is still top of mind when it comes to a long term move and will likely include purchasing a home in of the best places to buy property in Spain.

Let’s start with what’s changed since Brexit and the pandemic.

Post-Brexit & COVID-19

We do live in a different time now since Brexit and COVID-19. However, there really is nothing to be gained from pining for Spain as it was pre-COVID. Focus on what you can do if you want to buy a property and move there.

Less Freedom

Start with understanding the rules that apply to you. If you’re in the EU, the rules are the same as before the pandemic. If you’re British, you’ve no longer got the same freedom as pre-Brexit. You can stay for 90 days within a 180 day period without a permit. To stay longer, you need residency status, which is income tested.

The good news is buying a property in Spain is the same process; however, your residency status is now that of a non-EU resident.

Minimum Income Requirement

Pre-Brexit UK residents had the freedom of travel in Spain. Post-Brexit, to live in Spain permanently, you need to apply for residency status.

You will be income tested insofar as you will need to prove you have a regular income of £2000 or more a month. How you earn that income is up to you. It could be dividends, wages, or interest from investments, and so forth.

You may be self-employed or have the flexibility of remote working where you are an employee, but you can reside anywhere in the world as your work is done online. If you are moving to Spain with your family, you will need to prove you have an extra £500 per person per month.

While sustaining the minimum income may seem daunting, it’s really a safeguard for you. A notable change is ex-pat retirees living in Spanish. As a pensioner, pre-Brexit living in Spain was doable – however, it’s not so attractive now with many ex-pats in this demographic moving back to the UK.

Why? The UK pension is just £778.25 a month which is far short of the new minimum income requirement to stay in Spain as a resident.

Trading Places and Faces

However, while older folk are electing to return home to live out the rest of their lives, Spain and its property is attracting high interest from younger Europeans and non-Europeans.

Property prices are a lot lower than UK homes, and the cost of living is also less. Getting onto the property ladder doesn’t have to be achieved by owning a home in the country you’re located in. 🙂

Property investors are keen to secure buy-to-lets as they’re still an attractive investment as long term rentals or short term lets via accommodation portals, e.g.Airbnb.

Beware, British residents buying rental property in Spain will pay more rental income tax. Pre-Brexit, the tax rate was 19%, now it’s 24%. However, the sales price is lower, and Spain is an attractive holiday destination.

Summing Up

Look for the right signals to get into the Spanish property market. Since Brexit and the pandemic for ex-pats, it’s been a state of ‘trading places’.

Older folk departing and younger generations arriving to start their new journey where the property is more affordable, the weather is better and if there is another return to lockdown, where else would you rather be than in sunny Spain?

On your very own tropical island – maybe that’s your next goal.