1 00:00:00,000 --> 00:00:02,520 All right, welcome to your deep dive. 2 00:00:02,520 --> 00:00:05,600 So it looks like Spain is calling your name for retirement. 3 00:00:05,600 --> 00:00:06,720 It does seem that way. 4 00:00:06,720 --> 00:00:07,840 Yeah. 5 00:00:07,840 --> 00:00:10,840 You sent us quite a collection of articles and guides 6 00:00:10,840 --> 00:00:12,640 about retiring to Spain from the UK. 7 00:00:12,640 --> 00:00:14,720 So we've got a lot to unpack. 8 00:00:14,720 --> 00:00:15,560 Absolutely. 9 00:00:15,560 --> 00:00:16,720 I think we should just dive right in. 10 00:00:16,720 --> 00:00:17,560 Let's do it. 11 00:00:17,560 --> 00:00:21,200 Okay, so our mission, should we choose to accept it, 12 00:00:21,200 --> 00:00:23,240 is to figure out what it really takes 13 00:00:23,240 --> 00:00:25,480 to make this dream a reality, 14 00:00:25,480 --> 00:00:27,040 especially in a post-Brexit world. 15 00:00:27,040 --> 00:00:29,840 Yes, and it's 2025 now. 16 00:00:29,840 --> 00:00:31,640 So we can't ignore that elephant in the room. 17 00:00:31,640 --> 00:00:32,800 No, absolutely not. 18 00:00:32,800 --> 00:00:35,560 And that's something we'll definitely need to unpack. 19 00:00:35,560 --> 00:00:38,440 But before we get bogged down in the Brexit bureaucracy, 20 00:00:38,440 --> 00:00:40,560 let's start with the good stuff. 21 00:00:40,560 --> 00:00:43,840 Why Spain is such a magnet for retirees in the first place? 22 00:00:43,840 --> 00:00:46,160 Right, it's easy to see why Spain is so popular. 23 00:00:46,160 --> 00:00:48,240 Yeah, so paint is a picture. 24 00:00:48,240 --> 00:00:50,200 What is it about Spain that makes it 25 00:00:50,200 --> 00:00:52,400 such a retirement hotspot? 26 00:00:52,400 --> 00:00:53,920 Well, picture this. 27 00:00:53,920 --> 00:00:57,840 Sunny Mediterranean beaches, a slower pace of life. 28 00:00:57,840 --> 00:00:58,680 Siestas. 29 00:00:58,680 --> 00:00:59,400 Siestas, exactly. 30 00:00:59,400 --> 00:01:02,280 Delicious food, vibrant culture. 31 00:01:02,280 --> 00:01:04,320 Okay, you're speaking my language now. 32 00:01:04,320 --> 00:01:06,680 But beyond the sunshine and siestas, 33 00:01:06,680 --> 00:01:09,480 what makes Spain a practical and appealing choice 34 00:01:09,480 --> 00:01:12,680 for retirees, especially compared to the UK? 35 00:01:12,680 --> 00:01:15,080 Well, one of the biggest draws is affordability, 36 00:01:15,080 --> 00:01:16,880 especially when it comes to housing. 37 00:01:16,880 --> 00:01:18,960 The sources we're looking at consistently point out 38 00:01:18,960 --> 00:01:21,000 that your money goes a lot further in Spain 39 00:01:21,000 --> 00:01:22,480 than it does in the UK. 40 00:01:22,480 --> 00:01:23,320 That makes a big difference, 41 00:01:23,320 --> 00:01:25,400 especially when you're on fixed income. 42 00:01:25,400 --> 00:01:27,320 What about the cost of living in general? 43 00:01:27,320 --> 00:01:30,080 Generally speaking, it tends to be lower in Spain, 44 00:01:30,080 --> 00:01:32,400 although it does depend on where you choose to live. 45 00:01:32,400 --> 00:01:34,000 And then there's the healthcare system, 46 00:01:34,000 --> 00:01:35,800 which is ranked among the best in Europe. 47 00:01:35,800 --> 00:01:38,000 That's a huge factor for retirees. 48 00:01:38,000 --> 00:01:40,560 Absolutely, peace of mind when it comes to health 49 00:01:40,560 --> 00:01:41,600 is priceless. 50 00:01:41,600 --> 00:01:43,800 Now, the sources mentioned that Spain is home 51 00:01:43,800 --> 00:01:45,240 to millions of expats. 52 00:01:45,240 --> 00:01:49,360 It is, over 8.7 million expats, to be precise. 53 00:01:49,360 --> 00:01:51,200 Wow, that's a lot of people choosing Spain 54 00:01:51,200 --> 00:01:52,320 as their new home. 55 00:01:52,320 --> 00:01:53,840 And a good chunk of them are British, right? 56 00:01:53,840 --> 00:01:55,600 Yes, absolutely. 57 00:01:55,600 --> 00:01:58,360 Even after Brexit, Spain remains a popular choice 58 00:01:58,360 --> 00:01:59,760 for British retirees. 59 00:01:59,760 --> 00:02:03,200 In fact, over 130,000 British nationals 60 00:02:03,200 --> 00:02:06,440 chose to retire there just last year in 2024. 61 00:02:06,440 --> 00:02:08,520 It's interesting that despite the hurdles 62 00:02:08,520 --> 00:02:12,920 Brexit has created, so many Brits are still drawn to Spain. 63 00:02:12,920 --> 00:02:15,800 What's driving that continued popularity, do you think? 64 00:02:15,800 --> 00:02:18,440 Well, I think a big part of it is the sense of community. 65 00:02:18,440 --> 00:02:20,360 Many retirees are looking for a place 66 00:02:20,360 --> 00:02:21,600 where they can connect with others 67 00:02:21,600 --> 00:02:23,720 who share their language and culture. 68 00:02:23,720 --> 00:02:27,400 And Spain already has a well-established British expat 69 00:02:27,400 --> 00:02:30,080 community, so there's that social aspect. 70 00:02:30,080 --> 00:02:30,720 That makes sense. 71 00:02:30,720 --> 00:02:33,440 That built-in support system can be really valuable, 72 00:02:33,440 --> 00:02:35,400 especially when you're adjusting to a new life 73 00:02:35,400 --> 00:02:36,920 in a new country. 74 00:02:36,920 --> 00:02:39,080 And of course, the climate is a major draw. 75 00:02:39,080 --> 00:02:42,440 Who wouldn't want to swap gray skies for sunshine? 76 00:02:42,440 --> 00:02:44,760 But the sources also mentioned some specific and illusion 77 00:02:44,760 --> 00:02:48,120 towns that are particularly popular with British retirees, 78 00:02:48,120 --> 00:02:49,960 not just the usual coastal suspects. 79 00:02:49,960 --> 00:02:53,520 Yes, they highlight places like Malaga, Marbella, or Nerja. 80 00:02:53,520 --> 00:02:56,400 These towns offer a combination of stunning scenery, 81 00:02:56,400 --> 00:02:59,600 a relaxed lifestyle, and a more affordable cost of living 82 00:02:59,600 --> 00:03:02,520 compared to some of the bigger, more well-known coastal areas. 83 00:03:02,520 --> 00:03:05,720 OK, so far, Spain is sounding pretty idyllic. 84 00:03:05,720 --> 00:03:09,760 Sunshine, beaches, a slower pace of life, affordable living. 85 00:03:09,760 --> 00:03:13,080 But we can't ignore the Brexit elephant in the room any longer. 86 00:03:13,080 --> 00:03:15,680 We are in 2025, and things have definitely 87 00:03:15,680 --> 00:03:18,760 changed for UK citizens wanting to live in Spain. 88 00:03:18,760 --> 00:03:19,800 You are absolutely right. 89 00:03:19,800 --> 00:03:22,120 Brexit has definitely added some complexity. 90 00:03:22,120 --> 00:03:23,200 So let's break it down. 91 00:03:23,200 --> 00:03:25,680 What are the key changes that UK retirees 92 00:03:25,680 --> 00:03:26,840 need to be aware of now? 93 00:03:26,840 --> 00:03:29,200 Well, the most significant change is that UK citizens 94 00:03:29,200 --> 00:03:31,280 are no longer EU citizens. 95 00:03:31,280 --> 00:03:35,000 That means they need visas for long-term stays in Spain. 96 00:03:35,000 --> 00:03:37,240 So no more just packing your bags and moving freely? 97 00:03:37,240 --> 00:03:37,960 Not exactly. 98 00:03:37,960 --> 00:03:40,600 The sources all mention this 90-day rule. 99 00:03:40,600 --> 00:03:42,800 Essentially, without a visa, UK citizens 100 00:03:42,800 --> 00:03:45,760 can only stay in Spain for a maximum of 90 days 101 00:03:45,760 --> 00:03:47,920 within any 180-day period. 102 00:03:47,920 --> 00:03:50,920 OK, so popping over for a long holiday is still possible. 103 00:03:50,920 --> 00:03:53,080 But if you're dreaming of spending your retirement years 104 00:03:53,080 --> 00:03:56,000 in Spain, 90 days just won't cut it. 105 00:03:56,000 --> 00:03:58,040 What are the options for those who want to make Spain 106 00:03:58,040 --> 00:03:59,160 their permanent home? 107 00:03:59,160 --> 00:04:00,760 Well, for retirees specifically, 108 00:04:00,760 --> 00:04:03,160 there's the non-lucrative visa. 109 00:04:03,160 --> 00:04:05,200 This visa is designed for people who 110 00:04:05,200 --> 00:04:07,000 can support themselves financially 111 00:04:07,000 --> 00:04:08,840 without working in Spain. 112 00:04:08,840 --> 00:04:12,120 It allows you to live in Spain, but you can't hold a job there. 113 00:04:12,120 --> 00:04:16,680 Ah, so no Spanish paychecks to go with those Spanish siestas? 114 00:04:16,680 --> 00:04:18,200 That could be a deal breaker for some. 115 00:04:18,200 --> 00:04:18,800 You're right. 116 00:04:18,800 --> 00:04:20,640 It's a major consideration. 117 00:04:20,640 --> 00:04:22,680 But for those who might want to work remotely, 118 00:04:22,680 --> 00:04:24,720 perhaps for companies outside of Spain, 119 00:04:24,720 --> 00:04:27,920 there's the digital nomad visa, which we can discuss a bit 120 00:04:27,920 --> 00:04:28,640 later. 121 00:04:28,640 --> 00:04:31,400 OK, so there are options depending on your circumstances. 122 00:04:31,400 --> 00:04:34,440 But let's focus on this non-lucrative visa for now. 123 00:04:34,440 --> 00:04:35,880 What are the financial requirements? 124 00:04:35,880 --> 00:04:38,120 What kind of hoops do you have to jump through to qualify? 125 00:04:38,120 --> 00:04:40,360 Well, you need to prove that you have sufficient financial 126 00:04:40,360 --> 00:04:42,600 resources to support yourself without relying 127 00:04:42,600 --> 00:04:44,200 on Spanish benefits. 128 00:04:44,200 --> 00:04:45,880 And they don't just take your word for it. 129 00:04:45,880 --> 00:04:48,200 The Spanish authorities want to see the evidence. 130 00:04:48,200 --> 00:04:49,200 Show me the money. 131 00:04:49,200 --> 00:04:49,560 Right. 132 00:04:49,560 --> 00:04:50,960 So what exactly are we talking about? 133 00:04:50,960 --> 00:04:52,360 What kind of proof do you need? 134 00:04:52,360 --> 00:04:54,960 They want to see things like six months of bank statements, 135 00:04:54,960 --> 00:04:58,000 proof of pension income, that kind of thing. 136 00:04:58,000 --> 00:05:00,920 And of course, there are specific income requirements. 137 00:05:00,920 --> 00:05:02,600 Let's get into the nitty gritty then. 138 00:05:02,600 --> 00:05:04,440 What are those income requirements? 139 00:05:04,440 --> 00:05:07,240 For a single applicant, you need to prove an annual income 140 00:05:07,240 --> 00:05:09,880 of at least $30,244. 141 00:05:09,880 --> 00:05:12,360 OK, and what does that work out to on a monthly basis? 142 00:05:12,360 --> 00:05:17,560 That's roughly $2,646 per month. 143 00:05:17,560 --> 00:05:20,560 So enough for a comfortable life, but not exactly 144 00:05:20,560 --> 00:05:22,160 living like royalty. 145 00:05:22,160 --> 00:05:24,480 What if you have a spouse or dependents? 146 00:05:24,480 --> 00:05:26,480 Does that change the financial requirements? 147 00:05:26,480 --> 00:05:27,760 It does, yes. 148 00:05:27,760 --> 00:05:30,080 For each dependent you add to the application, 149 00:05:30,080 --> 00:05:34,800 you need to show an additional $7,560,000 per year. 150 00:05:34,800 --> 00:05:37,080 OK, so the costs can add up quickly. 151 00:05:37,080 --> 00:05:39,000 It sounds like you need to have your financial ducks 152 00:05:39,000 --> 00:05:42,360 in a row before even thinking about applying for this visa. 153 00:05:42,360 --> 00:05:43,800 What about employment history? 154 00:05:43,800 --> 00:05:45,200 Do you need to show any proof of that? 155 00:05:45,200 --> 00:05:46,240 Yes, you do. 156 00:05:46,240 --> 00:05:47,360 You need to demonstrate that you've 157 00:05:47,360 --> 00:05:50,040 had at least three months of work history with a contract that's 158 00:05:50,040 --> 00:05:51,520 valid for at least another year. 159 00:05:51,520 --> 00:05:54,360 OK, so you can't just waltz in straight out of university 160 00:05:54,360 --> 00:05:55,760 or from a brand new startup. 161 00:05:55,760 --> 00:05:56,640 Exactly. 162 00:05:56,640 --> 00:06:00,080 Or if you're a graduate, you can provide proof of your graduation. 163 00:06:00,080 --> 00:06:02,120 And for those working for a foreign company, 164 00:06:02,120 --> 00:06:05,000 that company needs to have been operating for at least a year. 165 00:06:05,000 --> 00:06:06,280 So there's some checks in place. 166 00:06:06,280 --> 00:06:06,800 Yeah. 167 00:06:06,800 --> 00:06:08,760 All right, we've talked about the financial side of things, 168 00:06:08,760 --> 00:06:10,720 but I'm sure everyone wants to know about health care. 169 00:06:10,720 --> 00:06:14,000 Spain is known for having a great public health care system. 170 00:06:14,000 --> 00:06:16,760 So how does that work for UK retirees? 171 00:06:16,760 --> 00:06:18,400 Well, there are a couple of options. 172 00:06:18,400 --> 00:06:22,880 If you're receiving a UK state pension and meet certain requirements, 173 00:06:22,880 --> 00:06:26,560 you may be eligible for Spain's public health care system 174 00:06:26,560 --> 00:06:28,400 through the S1 form. 175 00:06:28,400 --> 00:06:32,240 So if you qualify for the S1, you can access the Spanish health care 176 00:06:32,240 --> 00:06:33,760 system just like a Spanish citizen. 177 00:06:33,760 --> 00:06:34,880 Essentially, yes. 178 00:06:34,880 --> 00:06:36,080 That sounds pretty good. 179 00:06:36,080 --> 00:06:37,680 Is that the only option, though? 180 00:06:37,680 --> 00:06:39,640 What about private health insurance? 181 00:06:39,640 --> 00:06:41,720 Private health insurance is definitely an option. 182 00:06:41,720 --> 00:06:45,200 And in fact, even those who are eligible for the public system 183 00:06:45,200 --> 00:06:47,320 often choose to get private insurance as well. 184 00:06:47,320 --> 00:06:50,480 Why would someone choose to pay for private insurance 185 00:06:50,480 --> 00:06:52,320 when they have access to public health care? 186 00:06:52,320 --> 00:06:53,240 A few reasons. 187 00:06:53,240 --> 00:06:56,280 It often comes down to potential wait times. 188 00:06:56,280 --> 00:06:58,880 While the public system is excellent overall, 189 00:06:58,880 --> 00:07:01,840 there can sometimes be longer waits for certain procedures 190 00:07:01,840 --> 00:07:02,920 or treatments. 191 00:07:02,920 --> 00:07:05,560 Private insurance can offer quicker access. 192 00:07:05,560 --> 00:07:08,840 OK, so it's about choice and maybe a bit more peace of mind. 193 00:07:08,840 --> 00:07:13,320 But is private insurance mandatory in any situations? 194 00:07:13,320 --> 00:07:14,400 Yes, it is. 195 00:07:14,400 --> 00:07:17,040 If you're not eligible for the S1 form, 196 00:07:17,040 --> 00:07:18,920 then private health insurance is mandatory. 197 00:07:18,920 --> 00:07:21,000 You won't be able to get your visa without it. 198 00:07:21,000 --> 00:07:23,760 And also, if you are on the digital nomad visa 199 00:07:23,760 --> 00:07:25,400 and using the Beckham Law regime. 200 00:07:25,400 --> 00:07:25,720 Got it. 201 00:07:25,720 --> 00:07:27,480 So if you're not using the public system, 202 00:07:27,480 --> 00:07:30,640 you absolutely need to factor private health care costs 203 00:07:30,640 --> 00:07:31,960 into your budget. 204 00:07:31,960 --> 00:07:35,640 OK, so we've tackled the visa and health care hurdles. 205 00:07:35,640 --> 00:07:37,680 Now let's talk about the big T taxes. 206 00:07:37,680 --> 00:07:38,680 All right, taxes. 207 00:07:38,680 --> 00:07:39,760 Everyone's favorite topic. 208 00:07:39,760 --> 00:07:40,160 Right. 209 00:07:40,160 --> 00:07:42,240 It's complicated enough in your own country. 210 00:07:42,240 --> 00:07:44,400 But when you're retiring to another country, 211 00:07:44,400 --> 00:07:45,520 it gets even more complex. 212 00:07:45,520 --> 00:07:47,320 So break it down for us. 213 00:07:47,320 --> 00:07:50,080 What are the key things that UK retirees 214 00:07:50,080 --> 00:07:53,040 need to know about navigating the Spanish tax system? 215 00:07:53,040 --> 00:07:55,720 Well, first and foremost, you need to understand tax residency. 216 00:07:55,720 --> 00:08:00,040 If you spend 183 days or more in Spain in a calendar year, 217 00:08:00,040 --> 00:08:02,080 you're considered a tax resident of Spain. 218 00:08:02,080 --> 00:08:04,280 OK, so more than half the year and you're in. 219 00:08:04,280 --> 00:08:06,480 What does that actually mean practically? 220 00:08:06,480 --> 00:08:08,800 It means you're liable for Spanish taxes 221 00:08:08,800 --> 00:08:13,120 on your worldwide income, not just income you earn in Spain. 222 00:08:13,120 --> 00:08:16,360 So even your UK pension could be taxed in Spain. 223 00:08:16,360 --> 00:08:17,640 It could be, yes. 224 00:08:17,640 --> 00:08:19,120 But don't worry, there's good news. 225 00:08:19,120 --> 00:08:22,560 Spain and the UK have a double taxation treaty. 226 00:08:22,560 --> 00:08:23,720 OK, that's a relief. 227 00:08:23,720 --> 00:08:25,040 It was about the panic. 228 00:08:25,040 --> 00:08:27,920 What does that treaty actually mean for UK retirees? 229 00:08:27,920 --> 00:08:30,960 It means you won't be taxed twice on the same income. 230 00:08:30,960 --> 00:08:34,320 So you won't pay tax on your UK pension in both the UK 231 00:08:34,320 --> 00:08:34,960 and Spain. 232 00:08:34,960 --> 00:08:36,640 OK, that makes sense. 233 00:08:36,640 --> 00:08:38,320 But even with the treaty, I imagine 234 00:08:38,320 --> 00:08:40,880 there's still a lot of nuances and details to sort out. 235 00:08:40,880 --> 00:08:43,640 For instance, the sources mentioned that UK pensions 236 00:08:43,640 --> 00:08:46,040 are taxed differently depending on the type of pension. 237 00:08:46,040 --> 00:08:46,920 Yes, that's right. 238 00:08:46,920 --> 00:08:49,400 If you're receiving a UK state pension, 239 00:08:49,400 --> 00:08:52,160 that's still taxed in the UK, even if you're living in Spain. 240 00:08:52,160 --> 00:08:55,000 OK, so that stays under the UK tax umbrella. 241 00:08:55,000 --> 00:08:56,960 What about private pensions? 242 00:08:56,960 --> 00:08:59,200 Private pensions are generally taxed in Spain 243 00:08:59,200 --> 00:09:00,800 once you become a resident there. 244 00:09:00,800 --> 00:09:01,600 Got it. 245 00:09:01,600 --> 00:09:05,120 So your state pension stays in the UK system. 246 00:09:05,120 --> 00:09:08,320 And your private pension falls under the Spanish system. 247 00:09:08,320 --> 00:09:09,320 Makes sense. 248 00:09:09,320 --> 00:09:10,760 What about other types of income? 249 00:09:10,760 --> 00:09:13,480 Let's say you have rental income from a property back 250 00:09:13,480 --> 00:09:15,080 in the UK. 251 00:09:15,080 --> 00:09:17,000 Where is that taxed? 252 00:09:17,000 --> 00:09:18,480 That's a good question. 253 00:09:18,480 --> 00:09:22,560 Rental income from a UK property is still taxed in the UK. 254 00:09:22,560 --> 00:09:23,680 But here's the thing. 255 00:09:23,680 --> 00:09:25,840 You also need to declare it in Spain 256 00:09:25,840 --> 00:09:27,120 on your Spanish tax return. 257 00:09:27,120 --> 00:09:29,400 Oh, so it doesn't just slip under the radar 258 00:09:29,400 --> 00:09:30,600 because it's coming from the UK? 259 00:09:30,600 --> 00:09:31,440 No, it doesn't. 260 00:09:31,440 --> 00:09:33,160 But the good news is that you can 261 00:09:33,160 --> 00:09:35,640 claim a credit for the UK tax you've already 262 00:09:35,640 --> 00:09:37,960 paid on that rental income. 263 00:09:37,960 --> 00:09:39,880 That way, you're not being double taxed. 264 00:09:39,880 --> 00:09:41,080 That's good to know. 265 00:09:41,080 --> 00:09:42,600 OK, what about investment income? 266 00:09:42,600 --> 00:09:45,200 Things like dividends from UK stocks? 267 00:09:45,200 --> 00:09:47,600 That type of income is generally taxed in Spain 268 00:09:47,600 --> 00:09:49,040 if you're a tax resident there. 269 00:09:49,040 --> 00:09:50,840 OK, so it's really important to understand 270 00:09:50,840 --> 00:09:52,800 all these different income sources 271 00:09:52,800 --> 00:09:54,640 and how they're taxed in both countries. 272 00:09:54,640 --> 00:09:55,280 Absolutely. 273 00:09:55,280 --> 00:09:57,680 It can get complicated quickly, especially when you're 274 00:09:57,680 --> 00:09:59,600 dealing with two different tax systems. 275 00:09:59,600 --> 00:10:02,240 All right, so let's talk about the actual Spanish tax rates. 276 00:10:02,240 --> 00:10:04,400 What kind of percentages are we looking at here? 277 00:10:04,400 --> 00:10:07,560 Well, Spain has what's called a progressive tax system. 278 00:10:07,560 --> 00:10:10,080 That means that the more you earn, the higher percentage 279 00:10:10,080 --> 00:10:10,960 of tax you pay. 280 00:10:10,960 --> 00:10:12,960 OK, that's pretty standard in a lot of countries. 281 00:10:12,960 --> 00:10:13,960 But give us the range. 282 00:10:13,960 --> 00:10:15,480 What are the actual tax brackets? 283 00:10:15,480 --> 00:10:19,160 The rates start at 19% and go all the way up to 47%, 284 00:10:19,160 --> 00:10:20,440 depending on your income level. 285 00:10:20,440 --> 00:10:22,720 OK, so that's a pretty wide range. 286 00:10:22,720 --> 00:10:25,320 And then just to make things even more interesting, 287 00:10:25,320 --> 00:10:27,800 the sources mentioned something called a wealth tax. 288 00:10:27,800 --> 00:10:29,520 Yes, the wealth tax. 289 00:10:29,520 --> 00:10:31,040 That's something to be aware of, especially 290 00:10:31,040 --> 00:10:33,080 if you have significant assets. 291 00:10:33,080 --> 00:10:34,960 All right, tell us more about this wealth tax. 292 00:10:34,960 --> 00:10:36,520 Who does it apply to? 293 00:10:36,520 --> 00:10:41,520 It applies to individuals with global assets over $700,000. 294 00:10:41,520 --> 00:10:43,200 Wow, $700,000. 295 00:10:43,200 --> 00:10:45,400 So this isn't something that's going to affect everyone. 296 00:10:45,400 --> 00:10:48,720 It's really targeted at wealthier retirees. 297 00:10:48,720 --> 00:10:51,560 Does this make Spain less attractive for a high net 298 00:10:51,560 --> 00:10:52,840 worth individuals? 299 00:10:52,840 --> 00:10:54,600 It's certainly something to consider. 300 00:10:54,600 --> 00:10:56,880 While Spain has a lot to offer, the wealth tax 301 00:10:56,880 --> 00:11:00,280 can be a significant factor for those with substantial assets. 302 00:11:00,280 --> 00:11:02,640 So it's not all just sunshine and sangria. 303 00:11:02,640 --> 00:11:05,320 You need to think strategically about your finances. 304 00:11:05,320 --> 00:11:06,120 You do. 305 00:11:06,120 --> 00:11:09,560 And there are ways to potentially mitigate the wealth 306 00:11:09,560 --> 00:11:11,760 tax through careful planning. 307 00:11:11,760 --> 00:11:13,640 But it's really important to get advice 308 00:11:13,640 --> 00:11:17,040 from a tax specialist who understands both the UK 309 00:11:17,040 --> 00:11:19,000 and Spanish tax systems. 310 00:11:19,000 --> 00:11:22,920 OK, so having the right expert on your team is crucial. 311 00:11:22,920 --> 00:11:24,520 Now, what about property taxes? 312 00:11:24,520 --> 00:11:25,760 We haven't really touched on those yet. 313 00:11:25,760 --> 00:11:27,000 Right, those are important too. 314 00:11:27,000 --> 00:11:30,440 In Spain, there's the IBI, which is an annual property tax. 315 00:11:30,440 --> 00:11:32,680 It's similar to council tax in the UK. 316 00:11:32,680 --> 00:11:35,080 OK, so that's something you'll need to budget for every year. 317 00:11:35,080 --> 00:11:35,600 Anything else? 318 00:11:35,600 --> 00:11:38,200 Yes, there's also the plusvalia. 319 00:11:38,200 --> 00:11:39,800 This one is a bit different. 320 00:11:39,800 --> 00:11:42,480 It's a tax on the increase in land value 321 00:11:42,480 --> 00:11:44,280 when you sell a property. 322 00:11:44,280 --> 00:11:47,200 So even if you make a profit on your Spanish property, 323 00:11:47,200 --> 00:11:49,920 you might have to share some of that with the local municipality. 324 00:11:49,920 --> 00:11:51,800 That's the gist of it, yes. 325 00:11:51,800 --> 00:11:54,640 Now, we mentioned the digital nomad visa earlier 326 00:11:54,640 --> 00:11:57,120 as an alternative to the non-lucrative visa. 327 00:11:57,120 --> 00:11:58,760 Do you want to dive into that a bit now? 328 00:11:58,760 --> 00:12:00,320 Yes, let's talk about that. 329 00:12:00,320 --> 00:12:02,640 It sounds like an intriguing option, especially for people 330 00:12:02,640 --> 00:12:04,760 who want to maintain some flexibility. 331 00:12:04,760 --> 00:12:07,840 It may be continue working a bit, even in retirement. 332 00:12:07,840 --> 00:12:08,520 It is. 333 00:12:08,520 --> 00:12:11,480 It's designed specifically for people who work remotely 334 00:12:11,480 --> 00:12:14,360 for companies or clients outside of Spain. 335 00:12:14,360 --> 00:12:18,440 So you can live in Spain and still earn income from abroad. 336 00:12:18,440 --> 00:12:21,560 So you can enjoy the Spanish lifestyle while still working. 337 00:12:21,560 --> 00:12:22,800 What's the catch? 338 00:12:22,800 --> 00:12:24,920 Well, there are some requirements, of course. 339 00:12:24,920 --> 00:12:28,520 One key requirement is that no more than 20% of your income 340 00:12:28,520 --> 00:12:30,520 can come from Spanish sources. 341 00:12:30,520 --> 00:12:32,720 OK, so it's really geared towards those who are working 342 00:12:32,720 --> 00:12:34,440 for foreign companies. 343 00:12:34,440 --> 00:12:36,000 What about the financial requirements? 344 00:12:36,000 --> 00:12:39,560 Are they similar to the non-lucrative visa? 345 00:12:39,560 --> 00:12:40,600 They're somewhat similar. 346 00:12:40,600 --> 00:12:42,560 You still need to prove you have sufficient income 347 00:12:42,560 --> 00:12:45,320 to support yourself, usually through bank statements 348 00:12:45,320 --> 00:12:47,040 and employment contracts. 349 00:12:47,040 --> 00:12:49,000 However, there's a really interesting perp 350 00:12:49,000 --> 00:12:52,320 with the digital nomad visa, the Beckham Law Regime. 351 00:12:52,320 --> 00:12:54,480 The Beckham Law, like David Beckham. 352 00:12:54,480 --> 00:12:55,240 Exactly. 353 00:12:55,240 --> 00:12:56,680 Is he giving out tax breaks now? 354 00:12:56,680 --> 00:12:58,560 Well, not exactly. 355 00:12:58,560 --> 00:13:01,560 But the law is named after him because it was initially designed 356 00:13:01,560 --> 00:13:05,240 to attract high earning individuals like him to Spain. 357 00:13:05,240 --> 00:13:06,360 OK, that makes sense. 358 00:13:06,360 --> 00:13:08,640 So what does this Beckham Law actually do? 359 00:13:08,640 --> 00:13:12,280 It allows you to pay a flat 24% tax rate on your income 360 00:13:12,280 --> 00:13:15,040 for the first five years of your residency in Spain. 361 00:13:15,040 --> 00:13:15,960 Hold on a second. 362 00:13:15,960 --> 00:13:17,640 A flat 24%. 363 00:13:17,640 --> 00:13:20,600 Didn't you say the Spanish tax rates go up to 47%? 364 00:13:20,600 --> 00:13:21,600 I did, yes. 365 00:13:21,600 --> 00:13:25,440 But under the Beckham Law, you can cap your tax rate at 24% 366 00:13:25,440 --> 00:13:28,200 on income up to 600,000 jammals. 367 00:13:28,200 --> 00:13:29,800 That's a significant difference. 368 00:13:29,800 --> 00:13:31,160 That's a huge difference. 369 00:13:31,160 --> 00:13:34,280 So can anyone with a digital nomad visa 370 00:13:34,280 --> 00:13:36,360 take advantage of this Beckham Law? 371 00:13:36,360 --> 00:13:37,320 Not automatically. 372 00:13:37,320 --> 00:13:39,640 You do need to meet specific requirements 373 00:13:39,640 --> 00:13:40,880 and apply for it separately. 374 00:13:40,880 --> 00:13:42,440 But it's definitely worth exploring, 375 00:13:42,440 --> 00:13:44,320 especially if you're a higher earner. 376 00:13:44,320 --> 00:13:46,320 The potential tax savings are pretty substantial. 377 00:13:46,320 --> 00:13:47,840 Absolutely worth looking into. 378 00:13:47,840 --> 00:13:50,080 All right, so let's say you've chosen your visa path, 379 00:13:50,080 --> 00:13:53,640 whether it's the non-lucrative visa or the digital nomad visa. 380 00:13:53,640 --> 00:13:56,440 What practical steps do you need to take before you can actually 381 00:13:56,440 --> 00:13:58,720 pack your bags and move to Spain? 382 00:13:58,720 --> 00:14:00,680 Well, the first and most crucial step 383 00:14:00,680 --> 00:14:04,040 is applying for your chosen visa through the Spanish consulate 384 00:14:04,040 --> 00:14:05,240 in your home country. 385 00:14:05,240 --> 00:14:07,320 And be prepared, there's going to be some paperwork involved. 386 00:14:07,320 --> 00:14:07,800 Paperwork. 387 00:14:07,800 --> 00:14:10,200 When is there not paperwork when you're moving to another country? 388 00:14:10,200 --> 00:14:13,040 But OK, so start with the visa application. 389 00:14:13,040 --> 00:14:16,480 What else do you need to do before waving goodbye to the UK? 390 00:14:16,480 --> 00:14:19,440 Sorting out your health care arrangements is really important. 391 00:14:19,440 --> 00:14:22,760 You'll need to either apply for the S1 form for public health care, 392 00:14:22,760 --> 00:14:25,680 if you're eligible, or secure private health insurance 393 00:14:25,680 --> 00:14:27,360 before you arrive in Spain. 394 00:14:27,360 --> 00:14:28,280 Got it. 395 00:14:28,280 --> 00:14:31,240 Visa and health care, check, check. 396 00:14:31,240 --> 00:14:34,000 Now, what about once you've actually landed in Spain? 397 00:14:34,000 --> 00:14:36,200 What are the immediate must-dos? 398 00:14:36,200 --> 00:14:39,360 First things first, you'll need to open a Spanish bank account. 399 00:14:39,360 --> 00:14:43,720 That's essential for day-to-day life, paying bills, receiving income. 400 00:14:43,720 --> 00:14:46,640 OK, bank account, check, anything else? 401 00:14:46,640 --> 00:14:47,520 Yes. 402 00:14:47,520 --> 00:14:50,800 You'll also need to register your address at the local town hall. 403 00:14:50,800 --> 00:14:52,640 It's called Empadronamiento. 404 00:14:52,640 --> 00:14:53,680 Empadronamiento. 405 00:14:53,680 --> 00:14:56,160 It's basically registering yourself as a resident 406 00:14:56,160 --> 00:14:58,680 in your new Spanish town or city. 407 00:14:58,680 --> 00:15:01,680 It's essential for accessing all sorts of services and benefits. 408 00:15:01,680 --> 00:15:04,160 OK, bank account and address registration. 409 00:15:04,160 --> 00:15:05,760 What about the visa itself? 410 00:15:05,760 --> 00:15:07,960 Do you get a physical document once you arrive? 411 00:15:07,960 --> 00:15:08,520 You do. 412 00:15:08,520 --> 00:15:13,320 You'll receive a tie card, which stands for tarjeta de identidad de extranero, 413 00:15:13,320 --> 00:15:15,200 or foreigner identity card. 414 00:15:15,200 --> 00:15:17,480 OK, so that's like your official ID card in Spain. 415 00:15:17,480 --> 00:15:18,240 Exactly. 416 00:15:18,240 --> 00:15:21,080 You'll need to apply for this at the police station once you're settled. 417 00:15:21,080 --> 00:15:23,680 So another appointment to add to the to-do list? 418 00:15:23,680 --> 00:15:25,920 It is, but it's all part of the process. 419 00:15:25,920 --> 00:15:27,720 Now, one thing the sources really stressed 420 00:15:27,720 --> 00:15:29,760 was the importance of getting professional advice 421 00:15:29,760 --> 00:15:31,200 when making this move. 422 00:15:31,200 --> 00:15:33,640 They highly recommend consulting with tax professionals 423 00:15:33,640 --> 00:15:37,320 who understand both the UK and Spanish systems. 424 00:15:37,320 --> 00:15:38,360 That makes sense. 425 00:15:38,360 --> 00:15:40,800 Navigating all these tax rules and regulations 426 00:15:40,800 --> 00:15:43,320 in two different countries can be really overwhelming, 427 00:15:43,320 --> 00:15:45,360 especially for someone who's not a tax expert. 428 00:15:45,360 --> 00:15:46,160 Exactly. 429 00:15:46,160 --> 00:15:49,360 A good tax advisor can help you optimize your tax strategy 430 00:15:49,360 --> 00:15:51,480 and ensure you're complying with all the rules. 431 00:15:51,480 --> 00:15:53,520 Sounds like money well spent. 432 00:15:53,520 --> 00:15:55,480 All right, so let's zoom out a bit and talk about overall 433 00:15:55,480 --> 00:15:57,080 financial planning. 434 00:15:57,080 --> 00:16:01,120 What key points did the sources emphasize for UK retirees 435 00:16:01,120 --> 00:16:02,400 moving to Spain? 436 00:16:02,400 --> 00:16:04,080 One of the most important things to consider 437 00:16:04,080 --> 00:16:05,960 is the Spanish tax year. 438 00:16:05,960 --> 00:16:09,520 Unlike the UK, which has a tax year from April to April, 439 00:16:09,520 --> 00:16:13,400 Spain's tax year runs from January to December. 440 00:16:13,400 --> 00:16:15,120 So the timing of your move could actually 441 00:16:15,120 --> 00:16:17,440 have a big impact on your tax liability. 442 00:16:17,440 --> 00:16:18,760 It could, yes. 443 00:16:18,760 --> 00:16:20,840 So it's worth planning carefully. 444 00:16:20,840 --> 00:16:23,440 Another thing they highlighted was the potential for capital 445 00:16:23,440 --> 00:16:25,000 gains tax savings. 446 00:16:25,000 --> 00:16:26,640 OK, so tell me more about that. 447 00:16:26,640 --> 00:16:29,520 If you strategically time the sale of your assets, 448 00:16:29,520 --> 00:16:32,800 either before or after becoming a Spanish resident, 449 00:16:32,800 --> 00:16:36,400 you might be able to minimize your capital gains tax. 450 00:16:36,400 --> 00:16:37,840 So even within the rules, there's 451 00:16:37,840 --> 00:16:39,480 some room for smart maneuvering. 452 00:16:39,480 --> 00:16:40,720 Exactly. 453 00:16:40,720 --> 00:16:43,320 But it's really important to get advice from a specialist who 454 00:16:43,320 --> 00:16:45,680 can assess your individual circumstances 455 00:16:45,680 --> 00:16:48,120 and guide you on the best approach. 456 00:16:48,120 --> 00:16:49,400 Makes sense. 457 00:16:49,400 --> 00:16:52,880 Any other financial planning nuggets of wisdom from the sources? 458 00:16:52,880 --> 00:16:55,120 Yes, this is a big one. 459 00:16:55,120 --> 00:16:58,040 Don't assume that what was tax efficient in the UK 460 00:16:58,040 --> 00:17:00,640 will automatically be tax efficient in Spain. 461 00:17:00,640 --> 00:17:01,600 OK, good point. 462 00:17:01,600 --> 00:17:02,480 Give us an example. 463 00:17:02,480 --> 00:17:04,840 Well, take those individual savings accounts, 464 00:17:04,840 --> 00:17:07,160 ISAs, that are so popular in the UK. 465 00:17:07,160 --> 00:17:08,640 Yeah, everyone loves their ISAs. 466 00:17:08,640 --> 00:17:10,800 They lose their tax-free status once you're no longer 467 00:17:10,800 --> 00:17:11,560 a UK resident. 468 00:17:11,560 --> 00:17:13,440 Oh, so that comfortable nest egg you've 469 00:17:13,440 --> 00:17:15,640 been building up in your ISA might not 470 00:17:15,640 --> 00:17:17,680 be so comfortable anymore in Spain. 471 00:17:17,680 --> 00:17:18,840 That's a bit of a shock. 472 00:17:18,840 --> 00:17:20,520 It can be, yes. 473 00:17:20,520 --> 00:17:23,400 And it's just one example of why getting specialized cross 474 00:17:23,400 --> 00:17:26,360 border financial advice is so important. 475 00:17:26,360 --> 00:17:29,680 You need an expert who can look at your whole financial picture 476 00:17:29,680 --> 00:17:31,840 and advise you on the most tax efficient way 477 00:17:31,840 --> 00:17:34,520 to structure your assets for your new life in Spain. 478 00:17:34,520 --> 00:17:36,960 All right, specialized advice is sounding better and better 479 00:17:36,960 --> 00:17:38,600 all the time. 480 00:17:38,600 --> 00:17:40,320 Now let's circle back to pensions. 481 00:17:40,320 --> 00:17:43,920 We know that pensions can be a bit of a minefield for expats. 482 00:17:43,920 --> 00:17:46,000 What specific insights did the sources 483 00:17:46,000 --> 00:17:49,480 offer on pension planning for UK retirees in Spain? 484 00:17:49,480 --> 00:17:49,840 Right. 485 00:17:49,840 --> 00:17:53,400 So as we touched upon earlier, your UK occupational and state 486 00:17:53,400 --> 00:17:56,560 pensions are taxed in Spain once you become a resident there. 487 00:17:56,560 --> 00:17:58,800 But they made a really important point about lump sum 488 00:17:58,800 --> 00:18:00,080 withdrawals from pensions. 489 00:18:00,080 --> 00:18:01,840 Those are fully taxable in Spain. 490 00:18:01,840 --> 00:18:04,800 Oh, so if you're planning to take a lump sum from your pension, 491 00:18:04,800 --> 00:18:07,120 it might be better to do it before moving to Spain. 492 00:18:07,120 --> 00:18:08,560 It might be, yes. 493 00:18:08,560 --> 00:18:10,880 It's definitely something to consider and discuss 494 00:18:10,880 --> 00:18:12,600 with a financial advisor. 495 00:18:12,600 --> 00:18:15,640 They also suggested looking into pension consolidation. 496 00:18:15,640 --> 00:18:16,720 Genshin consolidation. 497 00:18:16,720 --> 00:18:18,400 Yeah, if you have multiple pensions 498 00:18:18,400 --> 00:18:21,360 from different employers, combining them into one 499 00:18:21,360 --> 00:18:24,000 could simplify things and potentially reduce 500 00:18:24,000 --> 00:18:25,400 the fees you're paying. 501 00:18:25,400 --> 00:18:29,520 They also mentioned QROPS, Qualifying Recognized Overseas 502 00:18:29,520 --> 00:18:30,680 Pension Schemes. 503 00:18:30,680 --> 00:18:31,800 QROPS. 504 00:18:31,800 --> 00:18:33,280 We touched on this briefly earlier. 505 00:18:33,280 --> 00:18:34,560 Those sounded pretty complex. 506 00:18:34,560 --> 00:18:35,960 They can be, yes. 507 00:18:35,960 --> 00:18:39,240 They're basically an option for transferring your UK pension 508 00:18:39,240 --> 00:18:40,480 overseas. 509 00:18:40,480 --> 00:18:42,320 But the rules and the tax implications 510 00:18:42,320 --> 00:18:45,000 can be quite tricky, especially if you transfer your pension 511 00:18:45,000 --> 00:18:47,440 after becoming a Spanish tax resident. 512 00:18:47,440 --> 00:18:49,440 So it's really important to get professional guidance 513 00:18:49,440 --> 00:18:52,200 before making any decisions about QROPS. 514 00:18:52,200 --> 00:18:53,240 Got it. 515 00:18:53,240 --> 00:18:56,800 Trade carefully with QROPS and get expert advice. 516 00:18:56,800 --> 00:18:58,720 Seems to be a recurring theme here. 517 00:18:58,720 --> 00:18:59,320 It is. 518 00:18:59,320 --> 00:19:01,200 And one last thing they emphasize 519 00:19:01,200 --> 00:19:04,280 is that retirement, even in sunny Spain, 520 00:19:04,280 --> 00:19:07,440 still requires ongoing financial vigilance. 521 00:19:07,440 --> 00:19:09,440 It's not all just sitting back and sipping 522 00:19:09,440 --> 00:19:10,640 sangria on the beach. 523 00:19:10,640 --> 00:19:12,840 Well, you can do that too, of course. 524 00:19:12,840 --> 00:19:15,320 But they stress the importance of reviewing your savings 525 00:19:15,320 --> 00:19:16,920 and investments regularly to make 526 00:19:16,920 --> 00:19:18,800 sure they're still aligned with your goals 527 00:19:18,800 --> 00:19:19,880 and your risk tolerance. 528 00:19:19,880 --> 00:19:20,600 Good point. 529 00:19:20,600 --> 00:19:22,800 Retirement isn't a set-and-forget-it scenario. 530 00:19:22,800 --> 00:19:23,200 Exactly. 531 00:19:23,200 --> 00:19:25,840 OK, before we wrap up this part of the deep dive, 532 00:19:25,840 --> 00:19:29,200 there's another crucial aspect we need to cover. 533 00:19:29,200 --> 00:19:30,800 Estate planning. 534 00:19:30,800 --> 00:19:32,800 Yes, estate planning. 535 00:19:32,800 --> 00:19:35,920 Not the most cheerful topic, but definitely important, 536 00:19:35,920 --> 00:19:38,960 especially when you're dealing with two different legal systems. 537 00:19:38,960 --> 00:19:40,680 The sources we've been looking at 538 00:19:40,680 --> 00:19:43,640 highlighted the differences between Spanish and UK 539 00:19:43,640 --> 00:19:45,480 inheritance laws, which is something 540 00:19:45,480 --> 00:19:48,160 that a lot of people might not even think about. 541 00:19:48,160 --> 00:19:50,840 What are some of the key things that UK retirees need 542 00:19:50,840 --> 00:19:51,840 to be aware of? 543 00:19:51,840 --> 00:19:54,000 Well, one of the most significant differences 544 00:19:54,000 --> 00:19:57,040 is something called forced airship in Spain. 545 00:19:57,040 --> 00:20:01,200 This means that certain heirs, usually your spouse and children, 546 00:20:01,200 --> 00:20:05,080 are automatically entitled to a specific portion of your estate. 547 00:20:05,080 --> 00:20:07,000 So you don't necessarily have complete control 548 00:20:07,000 --> 00:20:08,640 over who inherits what? 549 00:20:08,640 --> 00:20:09,760 Not entirely, no. 550 00:20:09,760 --> 00:20:11,400 But you can plan around these rules 551 00:20:11,400 --> 00:20:12,920 with the right legal advice. 552 00:20:12,920 --> 00:20:14,880 OK, so it's not a complete roadblock, 553 00:20:14,880 --> 00:20:17,200 but it's definitely something to be aware of. 554 00:20:17,200 --> 00:20:18,880 Now, what about UK inheritance tax? 555 00:20:18,880 --> 00:20:21,120 If you're a UK citizen living in Spain, 556 00:20:21,120 --> 00:20:23,480 do you still have to worry about UK inheritance tax? 557 00:20:23,480 --> 00:20:26,120 Yes, if you remain UK domiciled, 558 00:20:26,120 --> 00:20:28,680 you're still liable for UK inheritance tax 559 00:20:28,680 --> 00:20:31,480 on your worldwide assets, even if you're living in Spain. 560 00:20:31,480 --> 00:20:33,520 So the UK taxman can still reach you, 561 00:20:33,520 --> 00:20:35,520 even if you're living in the Vida Loca in Spain. 562 00:20:35,520 --> 00:20:36,400 That's right. 563 00:20:36,400 --> 00:20:38,560 And that's why the sources we've looked at 564 00:20:38,560 --> 00:20:41,000 suggested considering a change of domicile 565 00:20:41,000 --> 00:20:43,720 if you're really making Spain your prominent home. 566 00:20:43,720 --> 00:20:45,680 It's not a simple process, 567 00:20:45,680 --> 00:20:48,120 but it can have significant tax advantages. 568 00:20:48,120 --> 00:20:50,320 Another thing to discuss with the professional then. 569 00:20:50,320 --> 00:20:52,640 So we've mentioned the need for professional advice 570 00:20:52,640 --> 00:20:55,040 at various points throughout this deep dive, 571 00:20:55,040 --> 00:20:57,720 but it can be overwhelming to know where to start. 572 00:20:57,720 --> 00:20:59,600 What specific types of professionals 573 00:20:59,600 --> 00:21:01,040 do the sources recommend? 574 00:21:01,040 --> 00:21:03,760 They consistently emphasized finding tax specialists 575 00:21:03,760 --> 00:21:07,080 who have expertise in both UK and Spanish tax law. 576 00:21:07,080 --> 00:21:08,640 These are the people who can really guide you 577 00:21:08,640 --> 00:21:11,240 on things like residency, pensions, investments, 578 00:21:11,240 --> 00:21:12,560 and estate planning, 579 00:21:12,560 --> 00:21:14,120 making sure you're doing everything right 580 00:21:14,120 --> 00:21:15,160 in both countries. 581 00:21:15,160 --> 00:21:17,200 So finding a bilingual tax advisor, 582 00:21:17,200 --> 00:21:19,280 someone who speaks both the language of finance 583 00:21:19,280 --> 00:21:22,280 and the legalese of both countries is a must. 584 00:21:22,280 --> 00:21:23,240 Absolutely. 585 00:21:23,240 --> 00:21:26,080 They also highlighted the value of financial advisors 586 00:21:26,080 --> 00:21:28,880 who are experienced in cross-border financial planning. 587 00:21:28,880 --> 00:21:31,720 What would a financial advisor help with specifically? 588 00:21:31,720 --> 00:21:34,600 They can help with things like structuring your assets, 589 00:21:34,600 --> 00:21:36,040 managing your investments, 590 00:21:36,040 --> 00:21:38,000 and planning for retirement income, 591 00:21:38,000 --> 00:21:40,440 all in a way that aligns with your goals 592 00:21:40,440 --> 00:21:42,240 and the Spanish tax system. 593 00:21:42,240 --> 00:21:45,040 So tax advisors and financial advisors, 594 00:21:45,040 --> 00:21:47,920 anyone else we should be adding to the dream team. 595 00:21:47,920 --> 00:21:50,000 Legal professionals are definitely important, 596 00:21:50,000 --> 00:21:52,920 especially if you're dealing with complex estate planning 597 00:21:52,920 --> 00:21:54,840 or property transactions. 598 00:21:54,840 --> 00:21:56,840 Having a good Spanish lawyer can make sure 599 00:21:56,840 --> 00:21:58,440 all your affairs are in order 600 00:21:58,440 --> 00:22:00,680 and that you're complying with all the relevant laws. 601 00:22:00,680 --> 00:22:03,400 Okay, so it sounds like building a team of experts 602 00:22:03,400 --> 00:22:07,520 is really crucial for a smooth transition to life in Spain. 603 00:22:07,520 --> 00:22:08,360 It is. 604 00:22:08,360 --> 00:22:09,720 And the sources we've looked at 605 00:22:09,720 --> 00:22:12,040 also mentioned a number of organizations 606 00:22:12,040 --> 00:22:14,200 and websites that offer valuable information 607 00:22:14,200 --> 00:22:16,800 and support for UK retirees and staying. 608 00:22:16,800 --> 00:22:17,800 Oh, that's fantastic. 609 00:22:17,800 --> 00:22:19,800 Can you recommend a couple for our listener? 610 00:22:19,800 --> 00:22:21,880 Where should they start looking for more guidance? 611 00:22:21,880 --> 00:22:23,640 One that they repeatedly highlighted 612 00:22:23,640 --> 00:22:27,320 was the European Immigration and Advisory Service. 613 00:22:27,320 --> 00:22:29,040 They offer a wealth of information 614 00:22:29,040 --> 00:22:30,280 on all sorts of things, 615 00:22:30,280 --> 00:22:33,960 from residency and healthcare to taxes 616 00:22:33,960 --> 00:22:36,880 and other practical aspects of moving to Spain. 617 00:22:36,880 --> 00:22:38,880 Sounds like a great resource, anything else. 618 00:22:38,880 --> 00:22:40,320 They also recommended checking out 619 00:22:40,320 --> 00:22:42,040 the UK government's website, 620 00:22:42,040 --> 00:22:45,720 specifically the sections dedicated to living in Spain. 621 00:22:45,720 --> 00:22:49,280 They provide updates on post-Brexit rules and regulations 622 00:22:49,280 --> 00:22:51,840 and often have links to other helpful resources. 623 00:22:51,840 --> 00:22:53,800 Okay, so the UK government website, 624 00:22:53,800 --> 00:22:55,680 and I assume the Spanish government website 625 00:22:55,680 --> 00:22:56,760 would be helpful as well. 626 00:22:56,760 --> 00:22:58,760 Absolutely, that's a great source for information 627 00:22:58,760 --> 00:23:01,240 on things like visa requirements, healthcare access, 628 00:23:01,240 --> 00:23:04,040 and all the essentials for living in Spain. 629 00:23:04,040 --> 00:23:05,640 Great, we'll make sure to include links 630 00:23:05,640 --> 00:23:07,360 to all these resources in the show notes 631 00:23:07,360 --> 00:23:10,840 for this deep dive so our listener can easily find them. 632 00:23:10,840 --> 00:23:12,680 Now, before we move on to our special guest 633 00:23:12,680 --> 00:23:14,800 in the final part of this deep dive, 634 00:23:14,800 --> 00:23:16,240 I wanted to touch on one more point 635 00:23:16,240 --> 00:23:18,000 that was raised in the sources, 636 00:23:18,000 --> 00:23:20,280 prolonged absences from Spain. 637 00:23:20,280 --> 00:23:22,560 Oh, yes, that's an important one. 638 00:23:22,560 --> 00:23:23,760 It's something that a lot of people 639 00:23:23,760 --> 00:23:25,600 might not even think about. 640 00:23:25,600 --> 00:23:28,040 Just because you've got residency in Spain 641 00:23:28,040 --> 00:23:29,720 doesn't mean you can come and go as you please 642 00:23:29,720 --> 00:23:30,760 without any consequences. 643 00:23:30,760 --> 00:23:32,400 Exactly, there are rules. 644 00:23:32,400 --> 00:23:34,840 So what are those rules, generally speaking? 645 00:23:34,840 --> 00:23:37,560 How long can you be away from Spain 646 00:23:37,560 --> 00:23:41,200 without jeopardizing your residency status? 647 00:23:41,200 --> 00:23:45,680 Generally, you need to spend at least 183 days per year 648 00:23:45,680 --> 00:23:49,040 in Spain to maintain your tax residency status. 649 00:23:49,040 --> 00:23:51,120 But it goes beyond just taxes. 650 00:23:51,120 --> 00:23:53,320 Extended periods of time outside of Spain 651 00:23:53,320 --> 00:23:55,160 can also affect your eligibility 652 00:23:55,160 --> 00:23:56,800 for things like permanent residency 653 00:23:56,800 --> 00:23:58,600 or citizenship down the line. 654 00:23:58,600 --> 00:24:00,120 So if you're thinking of splitting your time 655 00:24:00,120 --> 00:24:02,880 between Spain and another country, 656 00:24:02,880 --> 00:24:04,080 you really need to think carefully 657 00:24:04,080 --> 00:24:05,120 about the implications. 658 00:24:05,120 --> 00:24:06,080 Absolutely. 659 00:24:06,080 --> 00:24:09,000 And the specific rules and requirements can get complex. 660 00:24:09,000 --> 00:24:11,400 So it's always best to consult with a legal professional 661 00:24:11,400 --> 00:24:13,640 to make sure you're staying on the right side of a law. 662 00:24:13,640 --> 00:24:14,640 Sounds like another case 663 00:24:14,640 --> 00:24:16,560 where professional advice is invaluable. 664 00:24:16,560 --> 00:24:17,400 It is. 665 00:24:17,400 --> 00:24:19,520 All right, speaking of professional advice, 666 00:24:19,520 --> 00:24:21,160 in the final part of this deep dive 667 00:24:21,160 --> 00:24:22,640 we'll be joined by a leading expert 668 00:24:22,640 --> 00:24:24,400 on Spanish property law. 669 00:24:24,400 --> 00:24:26,560 They'll be able to give us even deeper insights 670 00:24:26,560 --> 00:24:29,160 into the legal and financial intricacies 671 00:24:29,160 --> 00:24:31,680 of buying and owning property in Spain. 672 00:24:31,680 --> 00:24:33,000 I'm really looking forward to that. 673 00:24:33,000 --> 00:24:34,240 Me too. 674 00:24:34,240 --> 00:24:35,520 Welcome back to your deep dive 675 00:24:35,520 --> 00:24:38,160 into retiring to Spain from the UK. 676 00:24:38,160 --> 00:24:39,720 We've covered a lot of ground already, 677 00:24:39,720 --> 00:24:41,840 but there's one more big piece of the puzzle 678 00:24:41,840 --> 00:24:45,400 we need to explore before we bring in our special guest, 679 00:24:45,400 --> 00:24:46,520 Spanish property. 680 00:24:46,520 --> 00:24:49,120 Ah, yes, property. 681 00:24:49,120 --> 00:24:51,040 It's often a key part of the retirement dream, 682 00:24:51,040 --> 00:24:52,600 especially for those moving to Spain. 683 00:24:52,600 --> 00:24:54,840 I mean, who wouldn't want to wake up to sunshine 684 00:24:54,840 --> 00:24:56,440 and maybe a view of the Mediterranean? 685 00:24:56,440 --> 00:24:58,480 I know, I wouldn't mind that one bit. 686 00:24:58,480 --> 00:25:01,480 But before we get swept away by those idyllic visions, 687 00:25:01,480 --> 00:25:03,760 let's get down to brass tacks. 688 00:25:03,760 --> 00:25:06,480 What are the legal and financial ins and outs 689 00:25:06,480 --> 00:25:09,200 of buying and owning property in Spain? 690 00:25:09,200 --> 00:25:11,440 What do UK retirees need to know? 691 00:25:11,440 --> 00:25:13,080 Well, to guide us through this complex 692 00:25:13,080 --> 00:25:14,520 and often confusing world, 693 00:25:14,520 --> 00:25:16,440 we have a fantastic guest joining us 694 00:25:16,440 --> 00:25:18,800 for this final part of the deep dive, 695 00:25:18,800 --> 00:25:21,520 a leading expert on Spanish property law. 696 00:25:21,520 --> 00:25:23,800 Perfect timing, because I'm sure many of our listeners 697 00:25:23,800 --> 00:25:26,680 are already picturing themselves sipping sangria 698 00:25:26,680 --> 00:25:27,960 on their Spanish terrace. 699 00:25:27,960 --> 00:25:30,600 I know I am, but let's bring in our expert 700 00:25:30,600 --> 00:25:31,800 and get their insights. 701 00:25:31,800 --> 00:25:34,280 Welcome, we're so glad to have you join us today. 702 00:25:34,280 --> 00:25:35,280 It's a pleasure to be here. 703 00:25:35,280 --> 00:25:37,040 Property is such an important part 704 00:25:37,040 --> 00:25:39,280 of the retirement equation for so many people, 705 00:25:39,280 --> 00:25:40,960 and I'm happy to share my expertise. 706 00:25:40,960 --> 00:25:41,800 Fantastic. 707 00:25:41,800 --> 00:25:43,480 Now, we've already covered a lot of ground 708 00:25:43,480 --> 00:25:47,280 in this deep dive, visas, taxes, healthcare, pensions, 709 00:25:47,280 --> 00:25:49,640 but now we're really zooming in on that dream 710 00:25:49,640 --> 00:25:52,040 of owning a piece of Spanish paradise. 711 00:25:52,040 --> 00:25:54,960 To kick things off, can you give us a broad overview 712 00:25:54,960 --> 00:25:56,600 of the legal framework 713 00:25:56,600 --> 00:25:59,440 surrounding property ownership in Spain? 714 00:25:59,440 --> 00:26:02,640 What are some of the key differences from the UK system 715 00:26:02,640 --> 00:26:04,880 that UK retirees need to be aware of? 716 00:26:04,880 --> 00:26:06,360 Well, one of the first things to understand 717 00:26:06,360 --> 00:26:09,200 is that Spain operates on a civil law system, 718 00:26:09,200 --> 00:26:11,440 which is quite different from the common law system 719 00:26:11,440 --> 00:26:13,040 you have in the UK. 720 00:26:13,040 --> 00:26:15,600 This means that contracts are interpreted very strictly, 721 00:26:15,600 --> 00:26:17,960 and there's less reliance on judicial precedent. 722 00:26:17,960 --> 00:26:19,800 So dotting your eyes and crossing your T's 723 00:26:19,800 --> 00:26:21,320 is even more important in Spain. 724 00:26:21,320 --> 00:26:22,240 Absolutely. 725 00:26:22,240 --> 00:26:25,840 Having everything clearly outlined in writing is essential, 726 00:26:25,840 --> 00:26:27,800 and I can't emphasize enough the importance 727 00:26:27,800 --> 00:26:30,720 of having a Spanish lawyer review any contracts 728 00:26:30,720 --> 00:26:32,640 related to property transactions. 729 00:26:32,640 --> 00:26:34,600 So finding a trustworthy lawyer 730 00:26:34,600 --> 00:26:36,520 should be right at the top of the to-do list 731 00:26:36,520 --> 00:26:39,680 for anyone considering buying property in Spain. 732 00:26:39,680 --> 00:26:42,240 Now, can you walk us through the typical steps 733 00:26:42,240 --> 00:26:44,160 involved in a property purchase? 734 00:26:44,160 --> 00:26:45,480 What's the process like? 735 00:26:45,480 --> 00:26:46,680 Of course. 736 00:26:46,680 --> 00:26:49,760 The journey usually starts with finding that dream property. 737 00:26:49,760 --> 00:26:51,520 Many people work with the state agents, 738 00:26:51,520 --> 00:26:53,240 but you can also search directly 739 00:26:53,240 --> 00:26:55,920 through sellers or online platforms. 740 00:26:55,920 --> 00:26:58,480 So you found the place that makes your heart sing. 741 00:26:58,480 --> 00:26:59,760 What happens next? 742 00:26:59,760 --> 00:27:02,440 Well, it's common to make a verbal offer, 743 00:27:02,440 --> 00:27:06,320 but keep in mind it's not legally binding at this stage. 744 00:27:06,320 --> 00:27:07,640 Once your offer's been accepted, 745 00:27:07,640 --> 00:27:09,920 you'll typically sign a reservation contract 746 00:27:09,920 --> 00:27:11,400 and pay a reservation fee. 747 00:27:11,400 --> 00:27:13,720 Ah, so that takes the property off the market, right? 748 00:27:13,720 --> 00:27:14,680 Exactly. 749 00:27:14,680 --> 00:27:16,720 It gives you time to do your due diligence 750 00:27:16,720 --> 00:27:18,280 and finalize the purchase. 751 00:27:18,280 --> 00:27:20,040 Due diligence, that sounds pretty serious. 752 00:27:20,040 --> 00:27:21,520 What exactly does that entail? 753 00:27:21,520 --> 00:27:24,680 It's all about making sure there are no hidden surprises 754 00:27:24,680 --> 00:27:26,120 with the property. 755 00:27:26,120 --> 00:27:28,440 Your lawyer will do a thorough check 756 00:27:28,440 --> 00:27:29,440 of the ownership title, 757 00:27:29,440 --> 00:27:31,600 making sure everything's legitimate. 758 00:27:31,600 --> 00:27:33,800 They'll also check for any outstanding debts 759 00:27:33,800 --> 00:27:36,120 or mortgages on the property, 760 00:27:36,120 --> 00:27:38,400 and verify that all the planning permissions 761 00:27:38,400 --> 00:27:40,960 and building regulations are in order. 762 00:27:40,960 --> 00:27:42,520 So it's basically a safety net 763 00:27:42,520 --> 00:27:45,840 to protect you from any potential legal 764 00:27:45,840 --> 00:27:47,640 or financial issues down the road. 765 00:27:47,640 --> 00:27:48,720 Exactly. 766 00:27:48,720 --> 00:27:51,400 It's far better to uncover any problems early on 767 00:27:51,400 --> 00:27:53,960 than after you've already invested a significant amount. 768 00:27:53,960 --> 00:27:54,920 Absolutely. 769 00:27:54,920 --> 00:27:56,200 So let's say everything checks out 770 00:27:56,200 --> 00:27:58,320 during the due diligence process. 771 00:27:58,320 --> 00:27:59,280 What's the next step? 772 00:27:59,280 --> 00:28:00,680 If there are no red flags, 773 00:28:00,680 --> 00:28:03,200 you'll move on to signing the private purchase contract, 774 00:28:03,200 --> 00:28:06,920 which is known as the Contrata de Compraventa in Spanish. 775 00:28:06,920 --> 00:28:08,920 This is the legally binding agreement 776 00:28:08,920 --> 00:28:10,960 that outlines all the terms of the sale. 777 00:28:10,960 --> 00:28:12,520 So that's where things get real. 778 00:28:12,520 --> 00:28:13,800 What are some of the key things 779 00:28:13,800 --> 00:28:15,480 that are included in this contract? 780 00:28:15,480 --> 00:28:18,000 The contract will satisfy the purchase price, of course, 781 00:28:18,000 --> 00:28:21,040 as well as the payment schedule and the completion date. 782 00:28:21,040 --> 00:28:23,000 I imagine a sizable down payment 783 00:28:23,000 --> 00:28:24,560 is required at this stage. 784 00:28:24,560 --> 00:28:27,840 Yes, typically around 10% of the purchase price 785 00:28:27,840 --> 00:28:29,400 is paid as a deposit 786 00:28:29,400 --> 00:28:31,720 when you sign the private purchase contract. 787 00:28:31,720 --> 00:28:34,080 The remaining balance is paid on completion, 788 00:28:34,080 --> 00:28:36,240 which is when the property is officially transferred 789 00:28:36,240 --> 00:28:37,080 into your name. 790 00:28:37,080 --> 00:28:39,000 And that takes place at the notary's office. 791 00:28:39,000 --> 00:28:39,840 Exactly. 792 00:28:39,840 --> 00:28:41,800 The notary seems to play a pretty key role 793 00:28:41,800 --> 00:28:43,600 in Spanish property transactions. 794 00:28:43,600 --> 00:28:44,720 Absolutely. 795 00:28:44,720 --> 00:28:46,720 The notary is a public official 796 00:28:46,720 --> 00:28:49,000 who oversees the legal aspects of the sale, 797 00:28:49,000 --> 00:28:50,800 making sure everything is done by the book. 798 00:28:50,800 --> 00:28:52,880 They also officially registered the property 799 00:28:52,880 --> 00:28:55,040 in your name at the land registry. 800 00:28:55,040 --> 00:28:57,600 Okay, so the notary adds another layer of security 801 00:28:57,600 --> 00:28:59,640 and legitimacy to the process. 802 00:28:59,640 --> 00:29:01,480 Now, besides the purchase price itself, 803 00:29:01,480 --> 00:29:03,920 what other costs should people factor in 804 00:29:03,920 --> 00:29:05,720 when buying property in Spain? 805 00:29:05,720 --> 00:29:07,560 Well, as you mentioned earlier, taxes. 806 00:29:07,560 --> 00:29:10,480 There's transfer tax, which is applied to resale properties. 807 00:29:10,480 --> 00:29:12,440 The rate varies depending on the region, 808 00:29:12,440 --> 00:29:15,680 but it's usually between 6% and 10% of the purchase price. 809 00:29:15,680 --> 00:29:19,040 Wow, that's a pretty significant chunk of change. 810 00:29:19,040 --> 00:29:20,200 Anything else? 811 00:29:20,200 --> 00:29:21,840 There's also stamp duty, 812 00:29:21,840 --> 00:29:24,080 which is usually around 1.5%. 813 00:29:24,080 --> 00:29:26,200 Plus you'll have legal fees, notary fees, 814 00:29:26,200 --> 00:29:28,000 and land registry fees. 815 00:29:28,000 --> 00:29:31,080 So all in all, it's wise to budget for around 10%, 816 00:29:31,080 --> 00:29:34,960 15% of the purchase price to cover these additional costs. 817 00:29:34,960 --> 00:29:35,920 That's a good rule of thumb. 818 00:29:35,920 --> 00:29:36,760 Yeah. 819 00:29:36,760 --> 00:29:38,680 Now, we've focused on buying so far, 820 00:29:38,680 --> 00:29:40,520 but renting is also a popular option, 821 00:29:40,520 --> 00:29:43,160 especially for those who are looking for more flexibility 822 00:29:43,160 --> 00:29:46,480 or who aren't quite ready to commit to buying. 823 00:29:46,480 --> 00:29:50,280 Right, renting gives you a chance to try before you buy, 824 00:29:50,280 --> 00:29:51,880 get a feel for an area. 825 00:29:51,880 --> 00:29:54,080 What's the rental market like in Spain? 826 00:29:54,080 --> 00:29:55,440 It's quite diverse. 827 00:29:55,440 --> 00:29:57,880 You've got everything from short-term holiday 828 00:29:57,880 --> 00:30:00,200 lets to long-term rentals. 829 00:30:00,200 --> 00:30:01,480 And just as with buying, 830 00:30:01,480 --> 00:30:04,600 it's crucial to have a written rental contract 831 00:30:04,600 --> 00:30:08,160 or contrato de arrendamiento, as it's called in Spanish. 832 00:30:08,160 --> 00:30:11,040 This contract lays out all the terms of the agreement, 833 00:30:11,040 --> 00:30:13,080 the length of the rental period, the rent amount, 834 00:30:13,080 --> 00:30:14,960 the payment schedule, and the responsibilities 835 00:30:14,960 --> 00:30:16,760 of both the landlord and the tenant. 836 00:30:16,760 --> 00:30:19,040 And I imagine having a lawyer review the rental contract 837 00:30:19,040 --> 00:30:20,800 is just as important as having them review 838 00:30:20,800 --> 00:30:21,880 a purchase agreement, right? 839 00:30:21,880 --> 00:30:22,720 Absolutely. 840 00:30:22,720 --> 00:30:24,320 They can make sure your rights are protected 841 00:30:24,320 --> 00:30:25,920 and that you're not agreeing to anything 842 00:30:25,920 --> 00:30:27,480 that's unfair or unclear. 843 00:30:27,480 --> 00:30:28,920 Okay, good to know. 844 00:30:28,920 --> 00:30:31,720 So, we've covered buying and renting. 845 00:30:31,720 --> 00:30:34,040 Now, let's talk about the ongoing responsibilities 846 00:30:34,040 --> 00:30:37,120 of actually owning a property in Spain. 847 00:30:37,120 --> 00:30:40,200 What kinds of costs and duties come with that? 848 00:30:40,200 --> 00:30:41,840 Well, just like in the UK, 849 00:30:41,840 --> 00:30:45,160 there are ongoing costs associated with property ownership. 850 00:30:45,160 --> 00:30:48,040 We already mentioned the IBI, the annual property tax. 851 00:30:48,040 --> 00:30:50,000 And then you'll have your utilities, 852 00:30:50,000 --> 00:30:52,360 electricity, water, gas. 853 00:30:52,360 --> 00:30:53,920 What about community fees? 854 00:30:53,920 --> 00:30:55,160 Are those common in Spain? 855 00:30:55,160 --> 00:30:57,400 Yes, very common, especially if you live 856 00:30:57,400 --> 00:30:59,840 in an apartment complex or urbanization. 857 00:30:59,840 --> 00:31:03,360 Those fees cover the maintenance of the communal areas, 858 00:31:03,360 --> 00:31:05,280 gardens, pools, security. 859 00:31:05,280 --> 00:31:08,200 Right, so those need to be factored into the budget as well. 860 00:31:08,200 --> 00:31:10,320 Any other responsibilities to be aware of? 861 00:31:10,320 --> 00:31:12,240 Yes, property ownership in Spain comes 862 00:31:12,240 --> 00:31:14,400 with a responsibility to maintain your property 863 00:31:14,400 --> 00:31:17,680 in good condition, both structurally and aesthetically. 864 00:31:17,680 --> 00:31:19,400 And what about things like renovations 865 00:31:19,400 --> 00:31:22,000 or extensions, are there regulations around those? 866 00:31:22,000 --> 00:31:24,000 Absolutely, you'll need to get planning permission 867 00:31:24,000 --> 00:31:25,920 from the local authorities before undertaking 868 00:31:25,920 --> 00:31:27,160 any major works. 869 00:31:27,160 --> 00:31:29,320 So, it's always best to check with your lawyer 870 00:31:29,320 --> 00:31:31,520 and make sure you're following the correct procedures. 871 00:31:31,520 --> 00:31:32,840 This has been so insightful. 872 00:31:32,840 --> 00:31:35,240 Thank you so much for walking us through all of this. 873 00:31:35,240 --> 00:31:36,320 I agree. 874 00:31:36,320 --> 00:31:38,760 Understanding the legal and financial aspects 875 00:31:38,760 --> 00:31:41,240 of property in Spain is absolutely crucial 876 00:31:41,240 --> 00:31:44,720 for any UK retiree thinking of making the move. 877 00:31:44,720 --> 00:31:47,040 Well, on that note, this brings us to the end 878 00:31:47,040 --> 00:31:50,600 of our deep dive into retiring to Spain from the UK. 879 00:31:50,600 --> 00:31:52,400 We've really covered the whole spectrum 880 00:31:52,400 --> 00:31:55,040 from the initial appeal to the nitty-gritty details. 881 00:31:55,040 --> 00:31:58,120 And hopefully by now, our listener is feeling much more 882 00:31:58,120 --> 00:32:00,520 informed and empowered to make those big decisions 883 00:32:00,520 --> 00:32:02,080 about this exciting new chapter. 884 00:32:02,080 --> 00:32:05,400 Absolutely, remember, thorough planning and expert guidance 885 00:32:05,400 --> 00:32:07,280 are your best friends in this journey. 886 00:32:07,280 --> 00:32:10,240 Don't be afraid to tap into the resources we mentioned, 887 00:32:10,240 --> 00:32:12,680 consult with professionals, and most importantly, 888 00:32:12,680 --> 00:32:14,040 embrace the adventure. 889 00:32:14,040 --> 00:32:17,240 Retiring to Spain can be an incredibly rewarding experience. 890 00:32:17,240 --> 00:32:19,640 It's a chance to immerse yourself in a new culture, 891 00:32:19,640 --> 00:32:21,560 enjoy a more relaxed lifestyle, 892 00:32:21,560 --> 00:32:24,840 and hopefully soak up plenty of that famous Spanish sunshine. 893 00:32:24,840 --> 00:32:26,920 Until next time, happy planning. 894 00:32:26,920 --> 00:32:28,880 Welcome back to your deep dive. 895 00:32:28,880 --> 00:32:31,480 We're wrapping up our exploration of retiring to Spain 896 00:32:31,480 --> 00:32:33,800 from the UK, and for this final part, 897 00:32:33,800 --> 00:32:36,920 we're joined by a leading expert on Spanish property law. 898 00:32:36,920 --> 00:32:38,080 Yes, welcome. 899 00:32:38,080 --> 00:32:39,640 We're so excited to have you with us. 900 00:32:39,640 --> 00:32:41,880 This is perfect timing because I'm sure our listeners 901 00:32:41,880 --> 00:32:44,200 are already picturing themselves in their Spanish casa. 902 00:32:44,200 --> 00:32:45,280 Definitely. 903 00:32:45,280 --> 00:32:48,080 And you are the perfect person to help them navigate 904 00:32:48,080 --> 00:32:51,360 this exciting but often complex world. 905 00:32:51,360 --> 00:32:53,360 All right, so we've already covered a lot of ground 906 00:32:53,360 --> 00:32:57,400 visas, taxes, health care pensions, 907 00:32:57,400 --> 00:32:59,920 but now it's time to delve into the exciting, 908 00:32:59,920 --> 00:33:03,400 but often confusing world of Spanish property. 909 00:33:03,400 --> 00:33:05,200 I think a lot of people have this romantic vision 910 00:33:05,200 --> 00:33:08,200 of buying a charming villa in the Spanish countryside 911 00:33:08,200 --> 00:33:11,000 or a beachfront apartment with stunning sea views. 912 00:33:11,000 --> 00:33:12,000 Who wouldn't? 913 00:33:12,000 --> 00:33:13,800 But before we get carried away by those daydreams, 914 00:33:13,800 --> 00:33:15,360 let's get down to the nitty gritty. 915 00:33:15,360 --> 00:33:16,360 Exactly. 916 00:33:16,360 --> 00:33:18,880 What are the legal and financial realities 917 00:33:18,880 --> 00:33:21,080 of buying and owning property in Spain? 918 00:33:21,080 --> 00:33:23,880 What do UK retirees really need to know? 919 00:33:23,880 --> 00:33:25,280 It's a pleasure to be here. 920 00:33:25,280 --> 00:33:28,360 Property often plays a central role in the retirement dream, 921 00:33:28,360 --> 00:33:30,320 especially for those drawn to Spain. 922 00:33:30,320 --> 00:33:31,600 Absolutely. 923 00:33:31,600 --> 00:33:33,320 So to kick things off, can you give us 924 00:33:33,320 --> 00:33:35,760 an overview of the legal framework 925 00:33:35,760 --> 00:33:38,560 surrounding property ownership in Spain? 926 00:33:38,560 --> 00:33:41,160 Are there any key differences from the UK system 927 00:33:41,160 --> 00:33:43,640 that UK retirees need to be aware of? 928 00:33:43,640 --> 00:33:46,240 Well, the first thing to remember is that Spain operates 929 00:33:46,240 --> 00:33:49,200 on a civil law system, which is quite different 930 00:33:49,200 --> 00:33:51,080 from the common law system in the UK. 931 00:33:51,080 --> 00:33:54,040 OK, so different legal systems, different rules of the game. 932 00:33:54,040 --> 00:33:56,080 What does that mean, practically speaking? 933 00:33:56,080 --> 00:33:59,080 It means that contracts are interpreted very strictly 934 00:33:59,080 --> 00:34:02,920 in Spain, and there's less reliance on judicial precedent. 935 00:34:02,920 --> 00:34:05,240 So dotting your eyes and crossing your T's 936 00:34:05,240 --> 00:34:08,320 is even more crucial in Spain than it is in the UK. 937 00:34:08,320 --> 00:34:09,280 Absolutely. 938 00:34:09,280 --> 00:34:12,680 Having everything clearly outlined in writing is essential. 939 00:34:12,680 --> 00:34:14,120 And I honestly cannot stress enough 940 00:34:14,120 --> 00:34:16,400 the importance of having a Spanish lawyer 941 00:34:16,400 --> 00:34:19,480 review any contracts related to property transactions. 942 00:34:19,480 --> 00:34:21,600 So finding a trustworthy lawyer to be 943 00:34:21,600 --> 00:34:31,160 a lawyer to protect your interest every step of the way. 944 00:34:31,160 --> 00:34:33,800 OK, so lawyer, check. 945 00:34:33,800 --> 00:34:37,240 What about the actual process of buying a property? 946 00:34:37,240 --> 00:34:39,880 Can you walk us through the typical steps involved? 947 00:34:39,880 --> 00:34:41,000 Of course. 948 00:34:41,000 --> 00:34:44,880 The journey usually starts with finding that dream property. 949 00:34:44,880 --> 00:34:47,760 Many people choose to work with estate agents. 950 00:34:47,760 --> 00:34:49,920 But you can also search directly through sellers 951 00:34:49,920 --> 00:34:51,760 or use online platforms. 952 00:34:51,760 --> 00:34:54,520 Right, so lots of options for finding the perfect place. 953 00:34:54,520 --> 00:34:57,640 What happens once you've found a property that you like? 954 00:34:57,640 --> 00:35:00,160 Well, it's common to make a verbal offer, 955 00:35:00,160 --> 00:35:02,960 but it's not legally binding at this stage. 956 00:35:02,960 --> 00:35:04,800 So no handshake deals in Spain? 957 00:35:04,800 --> 00:35:06,880 Not when it comes to property. 958 00:35:06,880 --> 00:35:08,280 Once your offer has been accepted, 959 00:35:08,280 --> 00:35:10,520 you'll usually sign a reservation contract 960 00:35:10,520 --> 00:35:13,480 and pay a reservation fee, which typically takes the property 961 00:35:13,480 --> 00:35:15,760 off the market while you do your due diligence. 962 00:35:15,760 --> 00:35:16,760 Due diligence? 963 00:35:16,760 --> 00:35:17,880 That sounds pretty serious. 964 00:35:17,880 --> 00:35:19,480 What exactly does that involve? 965 00:35:19,480 --> 00:35:22,440 It's a crucial step to ensure there are no hidden surprises 966 00:35:22,440 --> 00:35:24,240 or potential problems with the property. 967 00:35:24,240 --> 00:35:26,240 So like a property health check? 968 00:35:26,240 --> 00:35:27,160 Exactly. 969 00:35:27,160 --> 00:35:30,440 Your lawyer will thoroughly examine the ownership title, 970 00:35:30,440 --> 00:35:32,680 making sure everything is legitimate and there are no 971 00:35:32,680 --> 00:35:33,800 issues. 972 00:35:33,800 --> 00:35:36,360 They'll check for any outstanding debts or mortgages 973 00:35:36,360 --> 00:35:39,400 on the property and verify that all the necessary planning 974 00:35:39,400 --> 00:35:42,280 permissions and building regulations are in order. 975 00:35:42,280 --> 00:35:43,760 So it's really about protecting yourself 976 00:35:43,760 --> 00:35:47,360 from any nasty surprises or legal and financial headaches 977 00:35:47,360 --> 00:35:48,080 down the line? 978 00:35:48,080 --> 00:35:48,960 Exactly. 979 00:35:48,960 --> 00:35:52,440 It's always better to identify any issues early on rather 980 00:35:52,440 --> 00:35:54,600 than after you've already invested a significant amount 981 00:35:54,600 --> 00:35:55,080 of money. 982 00:35:55,080 --> 00:35:55,800 Absolutely. 983 00:35:55,800 --> 00:35:59,040 So let's say the due diligence process comes back all clear. 984 00:35:59,040 --> 00:35:59,880 What's next? 985 00:35:59,880 --> 00:36:02,920 If everything checks out, you'll move on to signing the private 986 00:36:02,920 --> 00:36:05,640 purchase contract, which is known as the contrato 987 00:36:05,640 --> 00:36:07,760 compraventa in Spanish. 988 00:36:07,760 --> 00:36:09,480 This is the legally binding agreement 989 00:36:09,480 --> 00:36:11,520 that outlines all the terms of the sale, 990 00:36:11,520 --> 00:36:14,200 including the purchase price, the payment schedule, 991 00:36:14,200 --> 00:36:15,200 and the completion date. 992 00:36:15,200 --> 00:36:17,640 OK, so that's when things get really official. 993 00:36:17,640 --> 00:36:19,640 And I'm guessing a pretty hefty deposit 994 00:36:19,640 --> 00:36:21,040 is required at this point. 995 00:36:21,040 --> 00:36:21,600 Yes. 996 00:36:21,600 --> 00:36:24,040 Typically around 10% of the purchase price 997 00:36:24,040 --> 00:36:26,560 is paid as a deposit when you sign that private purchase 998 00:36:26,560 --> 00:36:27,840 contract. 999 00:36:27,840 --> 00:36:30,160 The remaining balance is paid on completion, 1000 00:36:30,160 --> 00:36:32,760 which is when the property is officially transferred into your 1001 00:36:32,760 --> 00:36:34,520 name at the notary's office. 1002 00:36:34,520 --> 00:36:38,280 Right, we've heard the word notary mentioned a few times now. 1003 00:36:38,280 --> 00:36:40,640 What role does the notary play in all of this? 1004 00:36:40,640 --> 00:36:44,600 The notary is a public official who oversees the legal aspects 1005 00:36:44,600 --> 00:36:47,720 of the property sale, making sure everything is done by the book 1006 00:36:47,720 --> 00:36:49,800 and according to Spanish law. 1007 00:36:49,800 --> 00:36:52,600 They also officially register the property in your name 1008 00:36:52,600 --> 00:36:53,880 at the land registry. 1009 00:36:53,880 --> 00:36:56,520 OK, so another layer of security and legitimacy 1010 00:36:56,520 --> 00:36:57,680 in the process. 1011 00:36:57,680 --> 00:37:01,040 Now, apart from the actual purchase price itself, 1012 00:37:01,040 --> 00:37:03,920 what other costs should people be prepared for when buying 1013 00:37:03,920 --> 00:37:04,960 property in Spain? 1014 00:37:04,960 --> 00:37:06,360 Taxes, of course. 1015 00:37:06,360 --> 00:37:07,880 Yes, those pesky taxes. 1016 00:37:07,880 --> 00:37:09,600 Can't seem to escape them, can we? 1017 00:37:09,600 --> 00:37:12,520 Not really, but it's important to factor them into your budget. 1018 00:37:12,520 --> 00:37:14,240 One of the main taxes you'll encounter 1019 00:37:14,240 --> 00:37:16,920 is transfer tax, which applies to resale properties. 1020 00:37:16,920 --> 00:37:19,080 Resale properties, so not new builds. 1021 00:37:19,080 --> 00:37:19,720 That's right. 1022 00:37:19,720 --> 00:37:21,720 The rate varies depending on the region, 1023 00:37:21,720 --> 00:37:25,560 but it typically falls between 6% and 10% of the purchase price. 1024 00:37:25,560 --> 00:37:28,160 Wow, that's a significant expense. 1025 00:37:28,160 --> 00:37:30,480 Are there any other taxes or fees that buyers 1026 00:37:30,480 --> 00:37:31,560 need to be aware of? 1027 00:37:31,560 --> 00:37:33,880 Yes, there's stamp duty, which is usually 1028 00:37:33,880 --> 00:37:35,360 around 1.5%. 1029 00:37:35,360 --> 00:37:37,920 Plus, you'll have legal fees, notary fees, 1030 00:37:37,920 --> 00:37:39,400 and land registry fees. 1031 00:37:39,400 --> 00:37:42,040 So it sounds like it's wise to budget for around 10%, 1032 00:37:42,040 --> 00:37:45,600 15% of the purchase price on top of the purchase price 1033 00:37:45,600 --> 00:37:47,640 itself to cover all these additional costs. 1034 00:37:47,640 --> 00:37:49,040 That's a good rule of thumb, yes. 1035 00:37:49,040 --> 00:37:50,520 Good advice. 1036 00:37:50,520 --> 00:37:54,000 Now, we focus mainly on buying a property so far, 1037 00:37:54,000 --> 00:37:56,720 but we know that renting is also a popular option, 1038 00:37:56,720 --> 00:37:58,800 especially for people who maybe want 1039 00:37:58,800 --> 00:38:01,720 to try before they buy, get a feel for an area 1040 00:38:01,720 --> 00:38:03,160 before committing to a purchase. 1041 00:38:03,160 --> 00:38:03,720 Exactly. 1042 00:38:03,720 --> 00:38:05,880 So what's the rental market like in Spain? 1043 00:38:05,880 --> 00:38:08,120 What should people know about renting a property? 1044 00:38:08,120 --> 00:38:09,880 Spain has a diverse rental market, 1045 00:38:09,880 --> 00:38:11,640 offering everything from short-term holiday 1046 00:38:11,640 --> 00:38:13,640 lets to long-term rentals. 1047 00:38:13,640 --> 00:38:15,480 And I imagine the legal aspects are just 1048 00:38:15,480 --> 00:38:17,680 as important with renting as they are with buying. 1049 00:38:17,680 --> 00:38:18,520 Absolutely. 1050 00:38:18,520 --> 00:38:21,200 Just as with buying a property, having a written rental 1051 00:38:21,200 --> 00:38:24,040 contract, which is called a contrato de arinamiento 1052 00:38:24,040 --> 00:38:25,840 in Spanish, is essential. 1053 00:38:25,840 --> 00:38:28,200 So no verbal agreements or handshake deals? 1054 00:38:28,200 --> 00:38:31,720 No, not when it comes to renting property in Spain. 1055 00:38:31,720 --> 00:38:34,320 The rental contract outlines all the key terms 1056 00:38:34,320 --> 00:38:37,600 of the agreement, including the duration of the rental period, 1057 00:38:37,600 --> 00:38:40,160 the rent amount, the payment schedule, 1058 00:38:40,160 --> 00:38:43,560 and the responsibilities of both the landlord and the tenant. 1059 00:38:43,560 --> 00:38:44,280 Makes sense. 1060 00:38:44,280 --> 00:38:46,640 And again, I'm guessing having a lawyer review 1061 00:38:46,640 --> 00:38:49,000 that rental contract is just as crucial as it is 1062 00:38:49,000 --> 00:38:50,280 with a purchase agreement. 1063 00:38:50,280 --> 00:38:51,280 Absolutely. 1064 00:38:51,280 --> 00:38:53,920 A lawyer can help ensure that your rights as a tenant 1065 00:38:53,920 --> 00:38:57,120 are protected and that you're not inadvertently agreeing 1066 00:38:57,120 --> 00:38:59,680 to anything that could put you at a disadvantage. 1067 00:38:59,680 --> 00:39:01,080 OK, great advice. 1068 00:39:01,080 --> 00:39:02,800 Now let's shift gears a bit and talk 1069 00:39:02,800 --> 00:39:05,080 about the ongoing responsibilities of owning 1070 00:39:05,080 --> 00:39:06,600 a property in Spain. 1071 00:39:06,600 --> 00:39:10,480 What kinds of costs and duties should people be prepared for? 1072 00:39:10,480 --> 00:39:13,640 Well, just like in the UK, there are ongoing costs associated 1073 00:39:13,640 --> 00:39:14,760 with property ownership. 1074 00:39:14,760 --> 00:39:16,440 We already talked about the IBI, which 1075 00:39:16,440 --> 00:39:18,000 is the annual property tax. 1076 00:39:18,000 --> 00:39:20,360 And then, of course, you'll have your regular utilities, 1077 00:39:20,360 --> 00:39:22,720 electricity, water, gas, all those fun things. 1078 00:39:22,720 --> 00:39:23,080 Right. 1079 00:39:23,080 --> 00:39:24,240 So that's pretty standard. 1080 00:39:24,240 --> 00:39:25,360 Anything else? 1081 00:39:25,360 --> 00:39:25,840 Yes. 1082 00:39:25,840 --> 00:39:28,320 Community fees are very common in Spain, 1083 00:39:28,320 --> 00:39:30,240 especially if you live in an apartment complex 1084 00:39:30,240 --> 00:39:31,360 or an urbanization. 1085 00:39:31,360 --> 00:39:32,280 Community fees? 1086 00:39:32,280 --> 00:39:33,320 What are those exactly? 1087 00:39:33,320 --> 00:39:36,920 These fees cover the maintenance of the communal areas. 1088 00:39:36,920 --> 00:39:40,800 Things like gardens, swimming pools, security, lifts, 1089 00:39:40,800 --> 00:39:43,080 cleaning services, that sort of thing. 1090 00:39:43,080 --> 00:39:44,680 OK, so if you're sharing amenities, 1091 00:39:44,680 --> 00:39:47,160 you're sharing the costs of upkeep as well. 1092 00:39:47,160 --> 00:39:47,880 Makes sense. 1093 00:39:47,880 --> 00:39:51,160 So those community fees need to be factored into your budget. 1094 00:39:51,160 --> 00:39:54,400 Any other responsibilities that come with owning property 1095 00:39:54,400 --> 00:39:55,520 in Spain? 1096 00:39:55,520 --> 00:39:56,200 Yes. 1097 00:39:56,200 --> 00:39:57,960 Property ownership in Spain comes 1098 00:39:57,960 --> 00:40:00,320 with a responsibility to maintain your property 1099 00:40:00,320 --> 00:40:03,480 in good condition, both structurally and aesthetically. 1100 00:40:03,480 --> 00:40:05,360 So keeping it looking spick and span? 1101 00:40:05,360 --> 00:40:06,360 Exactly. 1102 00:40:06,360 --> 00:40:08,000 And you also need to be aware that there 1103 00:40:08,000 --> 00:40:10,720 are regulations regarding things like renovations 1104 00:40:10,720 --> 00:40:11,680 or extensions. 1105 00:40:11,680 --> 00:40:14,320 OK, so you can't just decide to add a second story 1106 00:40:14,320 --> 00:40:16,920 to your villa without jumping through some hoops. 1107 00:40:16,920 --> 00:40:17,560 Not quite. 1108 00:40:17,560 --> 00:40:18,840 You'll need to get planning permission 1109 00:40:18,840 --> 00:40:20,960 from the local authorities before undertaking 1110 00:40:20,960 --> 00:40:22,040 any major works. 1111 00:40:22,040 --> 00:40:23,880 So it's always best to consult with your lawyer 1112 00:40:23,880 --> 00:40:26,320 and make sure you're following the correct procedures. 1113 00:40:26,320 --> 00:40:27,840 Always good advice. 1114 00:40:27,840 --> 00:40:29,560 Well, this has been incredibly insightful. 1115 00:40:29,560 --> 00:40:32,160 Thank you so much for taking the time to talk to us today 1116 00:40:32,160 --> 00:40:34,160 and for sharing your expertise. 1117 00:40:34,160 --> 00:40:35,200 Yes, thank you. 1118 00:40:35,200 --> 00:40:38,160 This information is going to be so valuable to anyone 1119 00:40:38,160 --> 00:40:41,680 considering buying or renting a property in Spain. 1120 00:40:41,680 --> 00:40:44,040 Well, that brings us to the end of our deep dive 1121 00:40:44,040 --> 00:40:46,880 into retiring to Spain from the UK. 1122 00:40:46,880 --> 00:40:49,960 We've covered a lot of ground, from the initial allure 1123 00:40:49,960 --> 00:40:52,880 to the practicalities, the visas, the health care, 1124 00:40:52,880 --> 00:40:55,040 the taxes, and of course, the property. 1125 00:40:55,040 --> 00:40:56,120 It's been quite a journey. 1126 00:40:56,120 --> 00:40:57,920 But hopefully by now, our listener 1127 00:40:57,920 --> 00:41:00,720 is feeling much more informed and empowered 1128 00:41:00,720 --> 00:41:03,640 to make those big decisions about this exciting new chapter. 1129 00:41:03,640 --> 00:41:04,520 Absolutely. 1130 00:41:04,520 --> 00:41:06,360 We've thrown a lot of information at you. 1131 00:41:06,360 --> 00:41:09,240 But the key takeaways are, do your research, 1132 00:41:09,240 --> 00:41:11,880 plan carefully, get expert advice, 1133 00:41:11,880 --> 00:41:13,560 and don't be afraid to ask questions. 1134 00:41:13,560 --> 00:41:16,000 And most importantly, enjoy the process. 1135 00:41:16,000 --> 00:41:19,600 Retiring to Spain can be an incredibly rewarding experience. 1136 00:41:19,600 --> 00:41:21,400 It's a chance to embrace a new culture, 1137 00:41:21,400 --> 00:41:23,680 a more relaxed pace of life, and of course, 1138 00:41:23,680 --> 00:41:25,520 that beautiful Spanish sunshine. 1139 00:41:25,520 --> 00:41:28,280 So until next time, happy planning.