Moving to Spain from the UK: An overview for British expats

For many Britons looking to relocate, Spain continues to be a top destination, thanks to its beautiful weather, laid-back lifestyle, and vibrant expatriate community. But since Brexit, the rules for British citizens moving to Spain have changed, and it’s important to be prepared.

In this guide, we’ll outline the key things you need to know, from visa requirements to healthcare, and offer tips on how to make your move as smooth as possible.

Post-Brexit visas and residency requirements

Brexit ended the free movement of UK citizens within the EU, which means British citizens are now subject to Spain’s immigration laws. If you’re planning to stay longer than 90 days in any 180-day period, you’ll need a visa.

Here are some common visa options:

• Non-lucrative visa: Designed for retirees and those with sufficient financial means to live without working. You’ll need to show proof of income (e.g. pensions, savings) to sustain yourself while living in Spain.
• Work visa: For those moving to Spain for employment, your employer will typically help arrange this. If you’re self-employed, you’ll need a visa that reflects your freelance or business status.
• Golden visa: If you’re planning to invest a significant amount in Spain (usually by purchasing property worth at least €500,000), this visa offers an attractive route to residency. However, Spain has announced plans to close the scheme, so it may be unavailable in the future.
• Student visa: If you’re moving to study, you’ll need to secure this visa, along with proof of acceptance from a Spanish institution and evidence of financial resources.

Each visa comes with specific requirements, so make sure you start the application process well ahead of your move. Learn more about visas and residency in Spain for UK citizens.

Financial planning and taxation

Relocating abroad comes with financial considerations that can catch people off guard if not properly planned.

The first step is notifying HMRC of your move, which will ensure you’re taxed correctly in the UK. You may also want to seek advice from a financial planner familiar with expat taxation to avoid unnecessary headaches.

In Spain, you’ll be taxed on your worldwide income, not just what you earn there. This includes pensions, investment income, and rental earnings. However, Spain and the UK have a double taxation agreement to prevent you from paying taxes twice on the same income.

Key points to consider:

• Spanish tax rates vary depending on your income level and region.
• Pension transfers: You may want to explore whether transferring your UK pension to a Qualifying Recognised Overseas Pension Scheme (QROPS) in Spain would be beneficial.
• Banking: Consider opening a Spanish bank account to manage bills and everyday expenses.
• Currency exchange: You may need to move money from the UK into Spain. If so, you could save money and simplify the process by transferring with Currencies Direct.

The sooner you plan your currency transfers, the more likely you are to get a strong exchange rate. We offer expert guidance and personalised support to help you get more from your money. Create a free account in minutes to start planning your transfers.

Budgeting and cost of living

The cost of living in Spain can vary widely depending on where you choose to live. Major cities like Madrid and Barcelona tend to be more expensive, especially in terms of rent, whereas rural areas or smaller coastal towns often offer a more affordable lifestyle.

If you’re considering purchasing a home, it’s essential to factor in all the costs of buying Spanish property, including property taxes and fees, which typically add 10% to 20% to the purchase price.

You can read our article on Spanish property tax for more details on the taxes associated with buying, owning and selling property in Spain.

You’ll also need to budget for:

• Healthcare costs (if you don’t yet qualify for public healthcare)
• Utility bills (water, electricity, internet)
• Transportation: Depending on your location, public transport might be a convenient and affordable option, or you may need to budget for car ownership.

It’s worth doing some research into the costs in the specific area you plan to live to ensure your budget will cover your lifestyle comfortably.

Accessing healthcare in Spain

Healthcare is a key consideration for expats, and Spain has a well-regarded healthcare system. If you were a legal resident before 31 December 2020, you’re entitled to healthcare as part of the UK-EU Withdrawal Agreement. But if you’re moving post-Brexit, you’ll likely need private health insurance until you’re eligible for public healthcare.

To qualify for public healthcare in Spain, you need to:

• Be employed or self-employed and contribute to the Spanish social security system
• Be officially retired
• Register as a resident and apply for the Tarjeta Sanitaria (healthcare card)

For those who don’t yet qualify, comprehensive private insurance is widely available and essential to cover medical expenses.

Legal and bureaucratic considerations

Moving to Spain requires navigating some legal and administrative processes, which can seem daunting at first but are essential to ensuring a smooth transition:

• Residency: After arriving, you’ll need to register as a resident, a process that can take several months. You’ll be issued a Foreigner’s Identification Number (NIE), which is essential for dealing with banks, utilities, and other official matters.
• Driving licence: UK driving licences are valid in Spain for six months, but after that, you’ll need to exchange it for a Spanish licence.
• Language: While many Spaniards speak English, especially in expat hubs, learning Spanish will make life easier, particularly when dealing with official matters.

Lifestyle changes and settling in

Life in Spain might be a dream come true, but it’s important to be aware of cultural differences. The pace of life is often slower, with a focus on family, community, and enjoying the moment. Shops and services may close for the afternoon siesta, and meal times are generally later than in the UK.

To fully embrace your new life:

• Get involved in the expat community – joining social groups can help ease the transition.
• Learn the local customs and traditions – understanding Spain’s rich culture will help you feel more integrated.
• Be patient – bureaucracy in Spain can be slow, so be prepared for things to take longer than you might expect.

Final thoughts

Moving to Spain post-Brexit might require more planning and paperwork, but the rewards of life in the sun, with Spain’s welcoming atmosphere and incredible quality of life, are worth it. With careful preparation – securing the right visa, understanding the financial and legal requirements, and immersing yourself in the local culture – you can enjoy a smooth transition and start your new life in one of Europe’s most popular expat destinations.

Meanwhile, we can help streamline your overseas transfers and potentially save money. Get in touch with the team if you want to find out more.