Holiday home versus relocating?

Posted: Thu Jan 20, 2022 5:50pm

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Joined: 15 Jan 2022

Hi Everyone, I have recently retired and my wife and I are thinking of either getting a holiday home in the Competa area, or..... completely relocating there from the UK. We have holidayed in the area 3 times before and really love it. We will be taking out a 3-month lease for March/April/May to house-hunt and decide what we want to do. From what I gather, the 90/180 rule is the biggest downside of not relocating, plus it costs more in flights and having to hire someone to take care of the house when we're not there. But it does mean you don't have to redo your driving licence and take out medical insurance. Any other upsides/downsides to having a holiday home and flipping between the UK and Spain? Appreciate any advice. Thanks!

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Posted: Thu Jan 20, 2022 7:21pm

Holaitsdavid

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Posts: 1479

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Location: Mijas Costa

Joined: 30 Mar 2021

Posted: Thu Jan 20, 2022 7:21pm

I made the 'below post', which might help and yes 90 days out of 180 tricky to anywhere in Schengen Area. Now Brits are not EU citizens you have limited flexibility & also it mean changing your 'tax residence' which can be costly if you choose to live here. Taxes are higher and a low tax free allowance, 'social security' is payable on income above the tax free allowance 'regardless of age'. (Effectively with S.S. being 34% and average tax of 30% it can mean a tax rate of 64%) (Middle income/pension people can be hit the most) ....

'The biggest joy is the weather, (apart from mid summer) great food and relatively low cost property compared to the UK, (But little or no appreciation, so not a great investment), study very carefully your future 'taxation situation', plus the cost of heath insurance, private much cheaper than UK and very good. They have Bupa here, https://www.sanitasexpat.com/quote_me/ Driving a problem right now as Brits can only drive for 6 months, then need to take a Spanish test, 'unless Spanish finally do a deal to swap'. Since the UK left the EU things can be complex. Spain now a third country and many complications, you can avoid many problems with a 'Golden Visa'. See link below, which also tells you many of the requirements to move. Good luck'.

https://myspainvisa.com/golden-visa-spain/