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Are you thinking of moving to Spain

By Jeremy Ferguson - Topics: Moving to Spain, Retire in Spain, Spain
This article is published on: 23rd June 2022

“Its so nice holidaying here, I’d love to live here all year round…’’

If you are a UK resident and here on holiday, it is very often these times that get people thinking about retiring to Spain. The attractions of the slower pace of life, a completely different climate, all those extra hours of daylight and sunshine, a lower cost of living, ( depending on lifestyle!), eating out often – on and on the list normally goes.

When the UK was part of the European Union, taking the plunge and moving to Spain was relatively straightforward, aside from the obvious challenges of the actual move. You could sell up, jump on a plane and then when you were here, apply for residency, register at the town hall etc, and that was pretty much it.

Now however, that simply isn’t the case. There is the fact that as a UK citizen, you no longer have the freedom of movement within the EU, something many people still haven’t come to terms with. You can of course still come here to live, but you will need to make an application for a Visa. If you are looking to retire, then this needs to be a non lucrative Visa.

I work closely with experts who can assist with these applications, who know the process inside out and make this part all very straightforward for you.

The financial planning side of the whole process is also essential, and that of course is where I get involved. It is important you dispose of or organize your assets in the most tax efficient way you can before you leave the UK. For example, making sure your pensions are correctly dealt with and selling your main residence at the right time to name just a couple, and of course understanding the tax system and rates applicable once you are here.

One of the most important aspects of making your Visa application, (which has to be done at one of three Spanish embassies in the UK – London, Manchester or Edinburgh), is understanding what your finances need to look like to satisfy the Spanish requirements. These are mostly focused on the fact that they want to ensure you have enough money or income to live here self sufficiently.

So you need to satisfy what is known as IPREM, literally translated this means “The Public Multiple Effects Income Indicator”. As a non EU member applicant ( Third country National ), you need to demonstrate you have 4 times the IPREM requirement, plus 100% extra per beneficiary. So in simple terms, if a married couple are retiring here you will need to prove income of €2,895.10 per month, or a lump sum of €34,741.20 for each year. It is also worth noting, your Non Lucrative Visa needs renewing after a year (for the next two years) and again after three years, again for the next two years. After the end of year five you will then obtain permanent residency. This all has an effect on what money they will want to see you have, be it in the form of Pension income, savings, cash in the bank etc. This not only applies when you make your initial application, but also for the following four years.

So if you are thinking about moving to Spain? You will need to make an application for a Visa. If you are looking to retire, then this needs to be a non lucrative Visa, it is really important to have a good handle on the financial requirements, not just for the initial application but also for the subsequent few years. Most of my work has changed significantly now when working with people who are planning their move here, as it is so much more complicated than it used to be.

As we are dealing with similar situations on a regular basis, it enables us to make the process as easy as it can possibly be for individuals.

If you would like to find out more about what planning would be needed to make living in Spain a reality, then please feel free to get in touch.

Article by Jeremy Ferguson

If you are based in the Marbella area you can contact Jeremy at: jeremy.ferguson@spectrum-ifa.com for more information. If you are based in another area within Europe, please complete the form below and we will put a local adviser in touch with you.

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