Why do you need health insurance to get residencia.

Hi Manny, I have recently purchased a property in torremolinos and faced the same problem as you. Firstly I think for us people around 5 years away from retirement and not yet ready to reside permanently in Spain, it is all about retaining the rights to the British pension system. Applying for residency is the only way to keep this benefit under the brexit agreement set out by the U.K. however under Spanish law residency requires a specific level of health cover that  has to be purchased as an annual policy in the first instance. As I understand , unless you are already at retiring age or intend working in Spain you have to have this. It has just cost me in excess of 1000 euros to do this but I have been informed that after the first year is up you can transfer into the state scheme at a much lower cost and pay monthly until you reach 65 when you will qualify for free Spanish health care. The European health card will only apply until its expiry date in any case and you would then have to apply for private health insurance. I think the card is seen by Spain as a Benifit for visitors only. Unfortunately this iwhole issue has come about because of this awful thing called brexit and is just one of the costs we will have to bear.

Manny,

What Philip has said is correct.  Although I do not believe the public medical system is that much less than private and private insurance is still preferred by many.

However, to move to ANY country in the world you will need to organize healthcare.  To become a resident is to become dependent on the healthcare system of the country you are resident in.

I think the problem with the way people from the UK are adjusting to all these Brexit changes comes about because many have viewed Spain as just another County in the UK.  Brexit is demonstrating that UK residents can no longer have their cake and eat it too.  If you want to be a resident of a country and have free movement then you must pay the piper - taxes & healthcare. 

The days of avoiding these costs for UK residents are over.

Also the EHIC is for vacationers, not residents.