Millions of people facing skyrocketing fuel bills as the UK winter turns cold will be warmed by the idea of ââretirement in the sun. It is still possible but requires a little more effort and money than before Brexit.
Britons can now be classified as non-EU citizens, but that hasn’t stopped them from taking over Spanish properties, according to the latest figures from specialist builder Taylor Wimpey EspaÃ±a.
Sales and Marketing Director Mark Pritchard said while many are buying vacation homes, a growing number want a full-time residence to work or retire in the sun. âDemand is incredibly high, even as new Omicron travel restrictions are imposed. “
Britons can visit Spain without a visa, but can only stay there for a maximum of 90 days, within a period of 180 days.
That’s less than six months a year in total.
For longer stays, you can apply for what is known as a non-profit residence visa, also known as a non-profit or retirement visa.
This allows non-European citizens to live in Spain provided that they do not exercise any economic or professional activity in the country.
You have to prove that you can generate enough income from your pensions, savings, investments and other assets such as rental property.
From January 2022, this must total at least â¬ 27,792 (Â£ 23,482) per year. This amounts to â¬ 34,731 (Â£ 29,346) if a dependent family member joins you.
These limits vary by country. From January, Portugal requires you to match its minimum wage of â¬ 8,460 (Â£ 7,147 per year). Adult dependents need an additional â¬ 4,230 (Â£ 3,573) and children an additional â¬ 2,358 (Â£ 1,992) each.
READ MORE: British expats will need more money for move to Spain and Portugal in 2022
If you live in Spain 183 days a year or more, you may have to pay Spanish taxes on your worldwide income. âSome expats will be happy about it and then be able to stay in the country all year,â Wilkins said.
Next year could bring yet another stumbling block, warned Jason Porter, director of business development at international consulting firm Blevins Franks. “Most UK pension plans are exempt from Spanish wealth tax, but that could change due to Brexit.”
For those concerned, one option would be to transfer their pension to a QROPS scheme in an EU country like Malta. âWe’ll know more about whether that’s necessary next summer,â Porter said.
Retirement in the sun is a dream, but the British will have to work harder to make it a reality.