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MOVING TO SPAIN

Nine things you should know before moving to rural Spain

With remote working becoming more common in Spain, more people are swapping cities for villages for a quieter life in a beautiful natural setting. But what do you need to know before making the move to the Spanish countryside?

Nine things you should know before moving to rural Spain
The picturesque village of Camarasa in Catalonia. Photo: Erwan Martin

Village properties are much cheaper

You’d probably already guessed this was the case, but to give you a more exact idea, a 2020 study by property website Idealista found that properties in villages with fewer than 5,000 inhabitants were on average 52 percent cheaper than homes in provincial capitals.

The average price per square metre for rural properties in Spain is €834/sqm whereas in the big cities its €1,729/sqm.

If you’re looking to move to a village which is within driving distance of the region’s capital, the biggest price differences are in villages close to Barcelona, Madrid, Seville, San Sebastián, A Coruña, Salamanca and Zaragoza, all of which have rural properties at least 60 percent cheaper than in their provincial capitals.

They’re generally underpopulated

Even though Spain’s population has grown by more than 15 percent in the past 20 years, a third of Spanish municipalities have lost 25 percent of their population.

Eighty percent of villages in the regions of Castilla y León, Extremadura and Asturias have lost residents in the last two decades, whereas in Madrid and the Balearic Islands this rural underpopulation has been far less marked (6 percent).

There aren’t that many young people

In 2019, there were 311 villages in Spain without a single inhabitant under 20 and 402 “pueblos” where more than half the population was over the age of 65.

That means that if you have a family with young children, you should consider what it will mean for them to not have any friends nearby, and there’s a chance they might have to travel far to go to school.

The region with most villages with no young people is Castilla y León (168) followed by Castilla y La Mancha (69) and Aragón (47), all in Spain’s interior.

It’s worth noting that this trend isn’t as manifest in Spain’s coastal regions. 

The main street in the village of Valderrobles in Aragón. Photo: Vane Montes/Pixabay

Many offer incentives for you to move

If you need some convincing before choosing to move to rural Spain, maybe the prospect of being paid to relocate to a specific village or getting a job or rent-free home will do the job.

There’s a constant turnaround of villages in Spain offering incentives to individuals and families for them to move to their village.

The trouble often is finding the latest offers and taking advantage of them in time, as there generally tends to be a fair amount of interest from city dwellers in Spain who want to start a new life on the cheap en el campo (in the countryside).

READ ALSO: How to find Spanish villages that are helping people move there

The internet in Spanish villages is getting better

An increasing number of villages and regional authorities are realising that if they want to attract new inhabitants who are of a working age, especially with the advent of remote working, they need to offer good internet speeds.

In recent years some villages in Gran Canaria, Aragón, Cantabria and other regions of Spain have decided to install fibre optic internet specifically to attract remote workers, and Spanish telecoms giant Telefónica has helped bring free Wi-Fi to 1,000 villages in Spain as part of the EU’s WiFi4EU programme.

READ MORE: 500 Spanish villages that are getting free Wi-Fi.

However, not all of rural Spain has superfast internet yet. Unpopulated areas in Aragón, Galicia, Asturias and Castilla y León are lagging behind, as evidenced in this 2021 map by the Spanish government which shows the percentage of the population with access to 100Mbps connections in each region. 

Could remote working also mean more remote living?

A 2020 report in Spain’s El País newspaper titled “How teleworking is giving wings to empty Spain” highlighted how a number of Spanish villages have indirectly benefited from the coronavirus lockdowns and travel restrictions, with more digital workers choosing to make rural Spain their new home.

Aside from the improvement to rural internet speeds mentioned earlier, the acceptance and normalisation of remote working – something which was relatively novel in Spain before the pandemic – is resulting in more young people weighing up the pros and cons of living in a city or a village. 

The lower cost of living, the comparative amount of freedom that can be enjoyed in terms of mobility restrictions (with the threat of new lockdowns looming) and even the increasing number of rural coworking spaces dotted around Spain are all contributing to a change in mentality among many remote workers.

Speaking Spanish is a must

This usually applies to living in Spanish towns and cities as well, but in a rural setting, where residents are far less likely to have an international background or speak English, having a good grasp of the Spanish language is pretty much essential.

If you’re an English speaker who doesn’t think they can learn Spanish, you can always consider moving to one the villages in Spain where Brits outnumber locals, although you will obviously not get to truly experience what life in Spain is like.

Spanish people in rural communities are friendly and will probably want to stop to chat if they bump into you on the street.

Logically, you are far more likely to feel like an integral part of a close-knit community if you can communicate with them, whether it’s at the local bar, shop or hardware store.

You may also be able to offer your neighbours English lessons, as regional authorities with large rural communities such as Extremadura and Aragón are already trying to promote foreign language learning among villagers to help boost tourism opportunities.

Plenty of opportunities to do good and do business

If you want to make a difference and help to improve the lives of people in rural communities in Spain, there’s a growing number of organisations that will welcome your help and any bright ideas you may have.

READ MORE: How Spaniards are helping to save the country’s 4,200 villages at risk of extinction

There are already initiatives such as adopting an olive tree, offering meals on wheels to remote villages and repopulating villages with newly arrived migrant families.

There may be an invaluable service that you can provide to a village in Spain that you turn into a business as well, offering local solutions to local problems.

Village life isn’t for everyone

Even though there are signs that repopulation and modernisation is breathing new life into many villages across Spain, most of the usual challenges that come with living in a rural setting persist.

There are fewer shops, services, health centres, schools and kindergartens. Jobs are few and far between and many properties aren’t refurbished and will need to be made more energy efficient and habitable (remember that much of Spain’s interior is scorching hot in the summer and bitter cold in the winter).

On the other hand, you may make huge quality of life gains by moving to a peaceful, natural setting where you have a simpler but more fulfilling day to day.

The decision, as well as the choice of location, is ultimately yours.

Moving to the countryside appears to be experiencing a rebirth in Spain currently, with new websites such as venteaviviraunpueblo.com (cometoliveinavillage.com) offering Spaniards and foreigners the chance to handpick the Spanish village that’s right for them.

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For members

PENSIONS

What Brits should know about SIPP and QROPS pensions if moving to Spain

This Q&A offers some key information on SIPP and QROPS pension plans for British pensioners thinking of retiring in Spain, to help them decide which option is better for them.

What Brits should know about SIPP and QROPS pensions if moving to Spain

Q: What are SIPPs?

A: SIPP stands for Self-Invested Personal Pension and is a UK-based pension plan. If you open an international SIPP then you can draw from this while you’re living in Spain.

Q: What is QROPS?

A: QROPS stands for Qualifying Recognised Overseas Pension Scheme. It allows you to transfer your UK pension out of the country. They are outside the UK tax regime, but must be inside the European Economic Area (EEA) if you want to avoid charges from HMRC. They also need to have similar rules and regulations to a UK-registered pension plan. Many QROPs from those wishing to retire to somewhere in Europe are transferred to Malta. As there is a dual tax treaty between Spain and Malta you will not be subject to Maltese tax when you draw your pension from there.

Q: What do I need to consider when opening a SIPP?

A: If you choose to open a SIPP, as it is self-invested, you will be responsible for managing it and making all the investment decisions. It is therefore best for those who already have some knowledge of investing or those who have the time and who are willing to put the work in to learn. It does, however, mean that you also have greater control and flexibility over your finances. You can choose to have the SIPP managed by a professional advisor, but of course this is an extra expense. Your SIPP could also be potentially subject to UK tax laws. 

Q: What do I need to consider when opening QROPs?

A: This is best for those wishing to cut all ties with the UK and permanently retire to Spain for the rest of their lives. You could lose UK domicile if you choose to do this and don’t have any other assets there, but it could mean you could also avoid UK inheritance tax. It’s also ideal if you wish your family also live outside of the UK

Q: I intend to return to live in the UK at some point in the future, which is best for me?

A: As SIPPs are UK-based, if you plan on returning there to live at some point during your retirement, that option is best. If you have QROPS, you could be subject to a large tax payment if you want to transfer it back to the UK.

READ ALSO: Six factors British people need to consider before retiring to Spain

Q: Which option will be cheaper for me?

A: SIPPs are generally cheaper than QROPs as you are managing it and investing yourself. If you choose someone else to manage it for you, however, this may not be the case.

Q: Will my SIPP be subject to tax in Spain?

A: Yes, if you are resident in Spain then you must follow Spanish tax regulations meaning that any withdrawals from SIPPs will be subject to income tax here. Pensions in Spain are subject to progressive tax rates ranging from 19 to 47 percent.  While SIPPs are also subject to UK tax rules, due to the double tax treaty between Spain and UK, you will not be taxed twice.

Q: Will my QROPS my subject to tax in Spain?

A: Yes, again if you’re resident in Spain you will be taxed on pension income. You must report income from a QROPS on your annual tax return. If you’re already a Spanish tax resident when you move your pension, it’s important to be aware that you’ll pay Spanish income tax on the whole value of the fund, therefore it’s much better to move it beforehand and then make your permanent move to Spain. 

Q: I want my pension to be paid in Euros to avoid exchange fees, which option will be best for me?

A: If you want to be paid in Euros, then QROPS will be the best as you will have completely transferred it out of the UK and into the EEA. This means that when you draw your pension, it will be paid out to you directly in Euros.

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