24 January, 2020

By VIVA Team

Living in Spain after Brexit

Today’s post shines a light on some of the issues widely believed to affect living in Spain after Brexit and what actions you should take as a Brit if you already live here, have a property but don’t live full-time, or if you’ve emigrated to sunny Spain to enjoy your retirement.

Latest Brexit news

Regardless of whether you’re a staunch Brexiteer or a Bremoaner like me, Tuesday’s news that Boris Johnson’s Withdrawal Agreement Bill had been definitively passed in the House of Lords and will be enshrined in law was a breath of fresh air. On 21st January 2020, almost exactly three and a half years after the controversial referendum, Brexit got done.

So, now that Prime Minister Johnson’s deal is good to go – an eventuality I, for one, was always rather doubtful of – Britain will be leaving the EU as planned next Friday 31st January. While the nation rests safe in the knowledge that the departure is imminent, its citizens living (or planning to move) abroad have some burning questions.

In this post I look at three questions that might be pertinent for Brits who – either permanently or otherwise – will be living in Spain after Brexit. The first of these is a real hot potato…

1. Will I have to get residency in Spain?

I’ve received several messages in recent times from concerned Brits asking for my advice as to whether or not to seek residency for living in Spain after Brexit. And, of course, the answer to this question depends entirely on your circumstances and the time frame in which you’re thinking of moving abroad, plus how long you'll be spending there.

As I’ve said before, if you already live full-time in Spain you’ve got until the end of the year to get your little green paper residency card (you get this by virtue of being an EU citizen… for now). This applies for anyone, in fact, who spends more than 3 months in Spain, so it’s a bit naughty if you have extended stays here and haven’t already got one.

For everyone else, the general guidance is to obtain Spanish residency, yes. By securing your residency card and then getting on your local town hall’s civil register (called empadronamiento in Spanish), you cover your own back legally - especially if you spend more than 183 days in Spain per year - and you'll save yourself more paperwork, red tape and headaches than if you were to wait until after the so-called "Brexit transition period" deadline on 31st December 2020.

Freedom of movement

Furthermore, the Conservative Party’s policy to end the principle of “free movement of persons between the UK and EU” may have spooked some people. The idea of only being allowed to stay in EU countries for a maximum of 90 days in any 180-day period without having to apply for a visa might seem like a huge step backwards in what is an increasingly global society.

And I believe it is. But, unfortunately, my opinion is of no significance. The salient fact is that being a British national and having residency in Spain is your passport to staying here for more than three months a year. It could also work out to be hugely beneficial for your travel within the Eurozone, too, as well as giving you tax advantages with property, access to free healthcare and an additional form of ID that's recognised by all official entities.

Healthcare in Spain... on the Costa del Sol
Healthcare in Spain... on the Costa del Sol


2. What will happen to the value of the pound?

And why is this significant?

Economists agree that, while Britain’s departure with a deal has, and will, continue to bolster the pound in the short term, its fluctuation in the mid- to long-term will hinge on its ability to secure meaningful and lucrative trade deals with countries within the European bloc as well as further afield.

By coming out of the EU customs union and vying for a free trade agreement with any nation that wants to do business with the UK, Johnson’s Withdrawal Agreement Bill, for many, steps quite far out of the comfort zone we’ve become used to.

Let’s hope that PM Johnson showing his hand doesn’t result in it metaphorically being bitten off by traditionally big trading nations; an eventuality that would be catastrophic for British businesses. Losing trade means losing investors, and this would have an abject effect on the markets and, consequently, the value of the sterling... which, of course, would impact on Brits living in Spain after Brexit.

Positive outlook

Despite this scaremongering, experts believe Brexit will, ultimately, have a negligible impact on the pound; in part due to the amount of time involved in the whole process. 

Let me put this point into context. Here we are, at a time when some people are probably still hungover from this New Year’s Eve, and the transition period doesn’t even end until the first round of shots are brought out on 31st December 2020… so we shouldn’t see a drastic change in behaviour come 31st January.

In any event, most Britain-EU trade deals will take up to three years to hash out, so expect currency changes to be like most people’s New Year’s resolution for alcohol: little and not-so-often.

However, delving into currency like this is only relevant because of question three’s reliance on it…

3. How will Brexit affect my savings and pension?

Evidently, if you live abroad and are living off savings or a pension fund in the UK, your purchasing power is closely linked to the strength of the pound, as mentioned above. At the time of writing, said value has crept up to around €1.185 to the pound – the highest it’s been since Boris Johnson’s landslide win in the general election in mid-December – so Brits with savings in UK banks will largely be pleased with the amount they are able to exchange.

Living In Spain After Brexit: 3 Questions You Might Be Asking Yourself: VIVA's currency exchange partner, Moneycorp

Our recommended associate Moneycorp will be happy to lend you a helping hand for all of your currency exchange needs.

With regards to pensions – more specifically, access to your UK pension living abroad – the Conservative Party’s Withdrawal Agreement clearly states that Brexpats moving to Europe during the transition period won’t be “disadvantaged in their access to pensions, benefits, and other forms of social security, including healthcare cover”1.

In short, there will be no change. British expats in Spain moving (and gaining residency status) before the end of this year will have the same welfare rights as they currently do. They are – rather humorously – referred to in the Withdrawal Agreement as the “protected cohort”. Sounds more like Game of Thrones than House of Commons, but that’s by the by.

“What about from 2021 onwards?”, I hear you say…

Try as I might, I’ve been unable to find anything approaching a detailed answer to this question. The rights of those wishing to retire to Spain after the transition deadline are “the subject of future negotiations”, according to official sources; although common sense dictates some generous reciprocal provision will be made.

To reiterate, nothing is set in stone. The issue of UK retirees being able to draw a pension in Spain for relocations post-31st December 2020 hasn’t made it to the negotiating table yet, let alone details such as whether the statutory annual increment on State Pensions will be honoured.

Of course, this is not an exhaustive list of issues affecting your rights and living in Spain after Brexit. Instead, it is an insight into some of the possible economic and bureaucratic changes that prospective and existing expats will have to acclimatise themselves to.

Do you have anything to add? Or do you feel that I’ve missed something out? I’d love to hear your thoughts about living abroad post-Brexit in the comments below!


Sources:

1 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/756376/14_November_Explainer_for_the_agreement_on_the_withdrawal_of_the_United_Kingdom_of_Great_Britain_and_Northern_Ireland_from_the_European_Union___1_.pdf#page=10

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/840656/Political_Declaration_setting_out_the_framework_for_the_future_relationship_between_the_European_Union_and_the_United_Kingdom.pdf#page=14

https://www.ecreu.com/expat-rights.html

https://www.theguardian.com/politics/2020/jan/22/government-condemned-for-rejecting-lords-child-refugee-dubs-amendment