Moving to Spain after Brexit - A Legal & Financial Requirement Guide for UK Citizens
PLEASE NOTE: The information in this guide ONLY applies to UK citizens who are planning to spend more than 90 days out of 180 days in Spain per year. If you are spending less than 90 days in Spain (i.e. at your holiday home), you do not need a visa. (as of April, 2021)
UK citizens have always been drawn to Spain. It is the place in Europe with the highest density of UK citizens, at 300,000 as of 2018, and continuing to grow at a rapid rate. 2021 may even welcome another 100,000, as the trend is hitting the biggest surge seen over the last decades. Yet in a nutshell, Brexit is still creating uncertainty.
Brexit, in many ways, limits freedom within legal actions between the EU and the United Kingdom. While the European Union is following the current rules, several European countries are now starting to consider easing residency requirements for UK citizens. In light of current uncertainty, lawyers are helping individuals find legal ways to stay in the EU, while living and doing business as UK citizens.
Based on an ongoing analysis of the situation, our lawyers at Lexidy Law Boutique will explain how to deal with uncertainty caused by Brexit. Below, you will find information about getting a residency in Spain as a UK citizen.
We will go through the following situations and which rules apply:
Changes in the Spanish real estate sector since Brexit
The purchase process remains the same and the requirements for purchasing a property hasn't changed, even for UK passport holders.
Even though the purchase process remains the same, what is new is that all UK nationals can apply for a Golden Visa, which has three different aspects. However, we will focus on the one regarding Real Estate, which is acquiring property for five hundred thousand (€500.000) euros or more before taxes, which can be in single or across multiple properties in Spain.
Another important aspect that changed with Brexit, was the percentages granted for mortgages to UK nationals. Previously, as being part of the European Union, you were eligible to obtain a 70-75% loan, whereas now this number has gone down to 50-70% maximum. Of course, this is on a case by case basis, where all of the information provided will be taken into account.
If you’re looking for a mortgage, fill out this form to get a non-obligatory consultation from our partners at Mortgage Direct.
Golden Visa Investment
To obtain this residence permit, the minimum investment amount should be over 500,000 euros free of taxes and charges. In the case of buying real estate assets with a total value of 500,000 euros or more, it is also possible to use borrowed funds from the bank for the rest of the amount exceeding 500,000 euros.
Real estate assets can be both residential and commercial, or plots of lands. Please note that what matters is the total money invested in real estate, so you can purchase different real estate assets if you wish.
- invest 2 million € in Spanish debts
- invest 1 million € in Spanish companies, stocks
- deposit 1 million € in a Spanish bank account
Taxes for non-EU citizens
As you know, Spanish Non-Tax Residents are taxed only on their Spanish Sourced income. This would apply to employment income from work performed in Spain, rental income from properties in Spain, imputed real estate income, interests from Spanish Bank accounts, dividends from shares in Spanish companies, and capital gains from Spanish assets, among others. Rules, in this case, are different for EU tax residents and non-EU tax residents.
After Brexit, since the United Kingdom is out of the European Union, the tax rate applicable on employment income, rental income or imputed real estate income is 24%. Additionally, to calculate the taxable income, no expenses are deductible.
Moving to Spain as a UK citizen
General migration regulations, paperwork regulations, and tourism have changed greatly since Brexit. The UK has approximately three million Europeans living in its territory, and there are around one million UK nationals living in the EU. Their rights are protected by a new treaty that will replace the rights guaranteed by European citizenship. Back before December 31st of 2020, UK citizens were allowed to stay in the EU and continue to receive state medical care and pensions overseas.
Regarding Spain, from July 6th, 2020 to December 31st, 2020, UK citizens were eligible to keep all rights of EU citizens by applying for a simplified process of getting residency. The permit was known as a special residence permit for UK citizens that granted the right to reside in Spain for up to 5 years as well as the ability to apply for a permanent residence permit right afterwards. Until 2021, UK citizens were originally allowed to count on state help, however, now the situation has changed drastically.
Spanish residency for those who already resided in Spain pre-Brexit
As of March 2021, the Spanish government had not announced any special immigration measures to facilitate the movement of UK citizens after the ending of the transition period. However, a change was seen for people who already resided in Spain and had the EU Registry Certificate. With the current regulation, those who already received the EU certificate in Spain, could apply to exchange it for a Foreigner Identity Card (and will be able to do so in 2021).
Moreover, those UK citizens who had exercised their right of residence in Spain before December 31st, 2020, could apply for a special UK residence permit, in order to maintain their rights as European citizens.
Citizens of the UK who had lived in Spain before the end of 2020, but did not apply for the special residence permit for UK citizens before the withdrawal, may still apply for this type of residence permit. As long as they can accredit that they were living in Spain before December 31st, 2020, and that they were covered by health insurance operated by an agency authorized to operate in Spain, and with a policy equivalent to the Spanish social security system.
Some Immigration Offices also require that the applicant has been registered with the Town Hall before Brexit and has obtained their “empadronamiento”.
Moving to Spain after Brexit and the transition period
During the transition period (until December 31, 2020), UK citizens who did not exercise their right of residence in Spain had the same rights as non-European citizens.
From 2021, UK residents are considered as non-European citizens for immigration purposes making them apply for a residence permit in the same way as any Non-EU citizen.
To help understand Spanish visa options, we have underlined 3 of the most popular residence permits UK Citizens can apply for:
- Non-lucrative visa Residence Permit
- Residence and Work Permits for Freelancers
- Residence and Work Permits for Employees
As the name implies, this residence permit without the right to work, does not entitle someone to work in Spain. Therefore, in order to obtain this type of residence permit in Spain, it is necessary to confirm that the applicant has sufficient funds to live in Spain without working, and most importantly, it is necessary to confirm the stability of the income received in another country. Also, the applicants have to accredit that they will be covered by health insurance in Spain during their period of residence.
The main requirements are to prove that the applicant has sufficient economic means (€2,259.60/month or €27,115.20/year for the main applicant and €564.90/month or €6,778.80/year for each accompanying family member), and that they dispose of health insurance for Spain with an authorised insurance company to work in Spain. In this case, travel insurance is not enough. The quotes for the health insurance will depend on the age of the applicants, the services included in the policy as well as the health insurance company the applicant is going to hire.
Besides the above mentioned documents, the applicant and their accompanying family members must provide their criminal records certificate (only for applicants of legal age, over 18 years old), and a medical certificate stating that the applicants do not suffer from any of the diseases that may have serious public health repercussions in accordance with what is stipulated by the International Health Regulations of 2005.
In addition to that, accompanying family members (only spouses/formal partners or children) must provide proof of the family relationship with the main applicant. That is, either the marriage certificate or official documents that accredits the partnership or the birth certificates.
All documents that are not originally written in Spanish will have to be translated into Spanish by a sworn translator. Also, public documents issued in a country other than Spain will have to be legalised first (with the Apostille of the Hague, if applicable) and afterwards, translated into Spanish by a sworn translator.
The application has to be presented before the Spanish Consulate in the applicants’ country of legal residence, and the Spanish administration has up to 3 months to resolve it.
If the visa is granted, once in Spain, applicants will have to apply for the Foreigner Identity Card after they have found accommodation in Spain and have proceeded to register with the Town Hall of their place of residency in Spain.
The Non-Lucrative Residence Permit is issued initially for 1 year and can thereafter be renewed for 2-year periods.
This option would allow the applicant to work as a Freelancer/Administrator of a company in Spain and to sign up for social security as such in Spain. With this permit, applicants can initially reside and work in Spain for 1 year, and it is renewable thereafter for 2-year periods.
Besides the basic personal requirements, applicants have to accredit the viability of the business project by presenting documents regarding the business and financial situation, such as documentation accrediting the applicant’s training and qualifications (if needed), accreditation of enough economic means for the initial investment and maintenance and/or commitment from financial institutions, commitment letters by future clients in Spain, and a detailed business plan indicating the expected investment, profitability and possible jobs created.
Also, If the applicant plans to work as the administrator of a Spanish company, they will need first to establish the company and register it with the Mercantile Registry, and then, apply for the residence and work permit.
The application must be presented at the Consulate in the applicant’s country of legal residency. The administration has up to 3 months to decide. In case of a favourable decision, they would have to apply for a visa to enter Spain. Once the visa is granted and the applicant arrives in Spain, they will have to register as freelancers with the Spanish Social Security, and afterwards apply for the Foreigner Identity Card.
There are different options for a person to obtain a residence permit as an employee of a firm operating in Spain. These options differ in requirements and duration of the proceedings necessary to obtain them:
3.1 Residence and Work Permits from the Law 14/2013
A. Golden Visa for Highly Qualified Professionals:
The so-called Golden Visa as per Law 14/2013, allows future employees to obtain a residency and work permit if they are hired as highly qualified professionals by a company in Spain. The main requirements are that the position to be filled is one for a highly qualified professional and that they have the corresponding qualifications which are reflected in the salary agreed in the employment contract.
The salary is a common and general element to every Highly Qualified Professional’s case. In every situation, it must correspond to the qualifications of the employee. Although it is internal criteria of the Administration, that may be modified at any time, we can point out for orientation purposes that, Directors and Managers should receive at least a gross salary of €54.142 / year, and the other scientific and intellectual technicians and professionals, a gross salary of at least €40.077 / year.
In these kinds of applications, the Spanish administration always studies each case, and they always prefer technical and engineering professionals.
In this case, the application must be submitted by the employer, not the employee. This application can be done by electronic means and we, as lawyers, can do it on behalf of the company.
The administration has to decide within 20 working days on the privileged Golden Visa applications.
If on the day of the application submitted by the employer, the applicant is legally in Spain, in case of a favourable resolution, the applicant will only need to register with the Spanish Social Security as an employee and apply for the Foreigner Identity Card. If the applicant is in the UK on the day of the application submitted by the employer, and the permit is granted, the applicant would first apply for the visa at the competent Spanish Consulate, and then enter Spanish territory, register with the Spanish Social Security and apply for the Foreigner Identity Card.
Spouses and children can apply for the same permit as accompanying family members, and in case of an approval, they would obtain a residence and work permit for Spain, as well.
b. Intra-Company Transfer
The Golden Visa for intra-company transfer is intended for those non-EU foreigners who move to Spain within the framework of an employment, professional or vocational training relationship with a company or group of companies established in Spain or in another country.
The residence authorisation for intra-company transfer has two modalities:
This authorisation will be granted in the case of temporary movements to work as a manager, specialist or, for training from a company established outside the European Union to an entity belonging to the same company or group of companies established in Spain.
For these purposes, the following shall be understood as:
- Manager: anyone whose duties include the management of the company or of a department or subdivision thereof.
- Specialist: anyone with specialised knowledge related to the activities, techniques or management of the company.
- Trainee worker: a university graduate who is transferred for the purpose of obtaining training in the company's techniques or methods and who receives remuneration for this.
- This authorisation will be granted in cases not covered above or once the maximum duration of the transfer foreseen in the ICT EU intra-corporate transfer has elapsed.
- If the applicant is legally in Spain at the moment of the residence permit application, they will obtain a permit for 2 years, or for the duration of the contract if it is shorter, to reside and work throughout the national territory. If the applicant is outside Spain on the day of the application, in case of a favourable resolution, the employee will have to apply for the corresponding visa at the competent Spanish consulate.
- The maximum duration of the transfer will be 3 years in the case of managers or specialists and one year in the case of trainees.
- National intra-company transfer residence permit:
- The maximum duration of the transfer will be 2 years or the duration of the contract if shorter, renewable.
- In order to apply for this permit, besides the general documents to present, the following ones must also be presented:
- Documents proving the existence of real business activity and, if applicable, that of the business group.
- A higher degree or equivalent or, where appropriate, minimum professional experience of 3 years.
- The existence of previous and continuous employment or professional relationship of 3 months with one or more of the companies in the group.
- Documentation from the company accrediting the transfer.
3.2 Residence and Work Permit for highly qualified professionals (from Law 4/2000)
a. Initial residency and work permit for highly qualified professionals (superior degree, or 5 years of experience, 1,2 or 1,5 times the average professional salary)
b. General residency and work permit
Please note that, as for the permits from the General Law, the employer must prove that the National Employment Situation does not apply to the job position; that is, that no legal resident in Spain can occupy the job position the future employee is applying for, which is very difficult unless it is a very specific job that only a few people in the world can perform.
Spanish Golden Visa for Entrepreneurs
Entrepreneur Visa designed especially for those who wish to start a business in Spain and where investment amount is not specified. However, authorities clearly indicate that the business project should be of public interest, have social and economic significance for the region and Spain as a whole, create jobs and be based on scientific and technological innovations.
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