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EXPLAINED: How Britons can live and work in Spain after Brexit

It’s become considerably harder for UK nationals wanting to move to Spain to do so now that they need a work permit, but it’s not impossible.

EXPLAINED: How Britons can live and work in Spain after Brexit
Will UK nationals be able to land English teaching jobs in Spain easily? Short answer: Not anymore. Photo: AFP

Since Brexit came into force on January 1 2021, UK nationals no longer have the automatic right to get a job in Spain or anywhere else in the EU. 

They technically don’t have the right to apply for a job or a work visa from Spain either, having to carry out the application from the UK or wherever they are through the Spanish consulate, just as it is for other non-EU nationals.

So what are the options for Britons of working age who want to live and work in Spain and who can’t afford other schemes such as Spain’s non-lucrative visa or the so-called golden visa?

The two main choices are a work permit as an employee and a work permit as a self-employed worker, both of which have their challenges as non-EU citizens.

Work permit as an employee (por cuenta ajena)

In order to be considered for a job as a non-EU national, in the majority of cases the position must be on Spain’s shortage occupation list.

The latest 12-page list published by Spanish employment agency SEPE is downloadable here, but overall the type of positions advertised are 95 percent in the maritime and shipping industry (from naval mechanics to ferry staff, chefs and waiters), as well as sports coaches.

In all fairness, it’s a pretty limited and disheartening list for the majority of British professionals interested in a move to Spain, but it is usually updated every quarter so there could be new positions opening. 

You also have to consider that your employer will have to declare that there was no suitable Spanish or EU candidate available to fill the position. The fact that it’s listed as an ocupación de dificil cobertura (skills shortage) is likely to play in your favour as that gives Spain’s employment ministry no choice but to accept non-EU nationals as candidates.

It is technically possible to apply for a work permit for a job that isn’t on SEPE’s list, but your prospective employer will have to vouch for you further still and really convince Spanish civil servants that there weren’t any local candidates available.

If you have found a job offer that you’re suitable for, you must start your application from the Spanish consulate in the UK or the country in which you live, that’s if there is of course interest on the part of your prospective employer as they have to sponsor you and start the application procedure themselves at their regional department of Labour and Immigration.

So even if you had scouted for work while ‘on holiday’ in Spain and managed to agree to a deal with your future boss, you wouldn’t be able to do any of the paperwork from Spain.

Bear in mind that your proficiency in Spanish may also be a key factor in landing the position and that your profession and qualifications (especially regulated ones like doctors, architects, lawyers) may need to be recognised first as a result of Brexit.

The standard employee’s work permit in Spain lasts one year and can be easily renewed if your work conditions haven’t changed.

What about English teaching after Brexit?

There has been no mention yet by the Spanish government as to whether it will fast-track work permits for British English teachers wanting to come to Spain.

Teaching English is a job that many anglophones in Spain take up as native teachers are very much sought after and the pay isn’t too bad either.

Whereas Britons previously didn’t often need an English teaching qualification to land a job and could simply shop around at language schools and academies in person, this will no longer be as straightforward.

Not impossible however, as the thousands of Americans, Australians, Canadians and other English-speakers who come to Spain to teach each year can vouch for.

The most common work permit used by non-EU English speakers who have completed a TEFL (Teaching English as Foreign Language) is in fact the student visa, which allows them to study at a recognised institution while teaching English on the side.

There is also the “Auxiliares de Conversación” Programme which is run by the Spanish government and sees people from the United States, Canada, New Zealand and Australia recruited to be English language assistants in Spanish schools. Could the UK be joining this list soon?

There are other schemes available to non-EU English teachers so the best place to start is with the language schools and organisations themselves: send out some emails and find out what choices are available to you personally.

Work permit for self-employed people (por cuenta propia)

For UK citizens looking to move to Spain and set up their own business or register as self-employed workers (autónomos), the process is again more complicated after Brexit.

You will have to demonstrate that you have the right qualifications to fulfil said position and prove that you will have sufficient earnings in Spain.

All this will have to feature in a comprehensive business plan which you’ll have to present, covering everything from a marketing plan, the readiness of financing and payments and other information about your operations. Overall, you’ll have to demonstrate that your business will be successful within three years.

If you thought that was tricky, wait for it. You’ll have to send this business plan to one of these five Spanish institutions for their approval:

Unión de Profesionales y Trabajadores Autónomos –  UPTA

Confederación Intersectorial de Autónomos del Estado Español – CIAE

Organización Profesionales autónomos – OPA

Unión de Asociaciones de trabajadores Autónomos y emprendedores-  UATAE

Federación Nacional de Trabajadores Autónomos – ATA

They will review it and send a viability certification if they agree the business will be successful. 

If they approve the business plan, you’ll have to send this together with all the other paperwork to Spain’s Ministry of Labour and Immigration. The permit is also valid for a year but after five you’ll be eligible to a long-term five year work permit.

Again, it could be that you need to have your qualifications verified by the Spanish Ministry of Education if you work in a regulated field, a painstaking process which currently takes two years on average.

 Conclusion

The days of easy work in Spain for UK nationals wanting to move after Brexit are over, we’re afraid. 

It may be that English teaching is still the easiest option for landing a job in Spain post-Brexit, but this will hardly be any consolation for those with careers in other fields.

Spain, with its notoriously high unemployment rate, has a slight protectionist attitude towards its work market, wanting to offer the few jobs that are on offer to its local population or at least EU candidates. This can also be seen in how long they take to process the recognition of qualifications of non-EU nationals, at least four times longer than in Germany or Ireland.

Even if they didn’t have this approach, the country always scores high for quality of life on expat surveys, but not so for career prospects.

READ MORE: The downsides of moving to Spain for work

Sadly, it may be that for many young Britons wanting to live and work in Spain from 2021 onwards, the only way to get their foot in the door is with a very specialised and highly skilled career to offer.

It can still be done, but it will take much longer (maybe even years) for many Brits to find work in Spain if they weren’t here before Brexit.

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AMERICANS IN SPAIN

Navigating Spain’s real estate market: A guide for American homebuyers

There are some key matters US nationals looking to buy a Spanish home should consider, from legal complexities, to tax, property inspections and the role of buyer's agents. This quick guide by an international lawyer in Spain has you covered.

Navigating Spain's real estate market: A guide for American homebuyers

Buying a residential property in Spain can be an exciting yet complex endeavour, especially for American buyers unfamiliar with the intricacies of the Spanish real estate system.

With varying regulations at the state, regional, and local levels, it is crucial to be well-informed and well-prepared.

In this article, Maryem Essadik, immigration lawyer and head of English-speaking international law firm Marfour, offers US nationals a breakdown of the key considerations when buying a Spanish property.

Legal Complexities

Spain’s legal framework for real estate transactions is multifaceted, involving regulations that differ significantly between the national, regional, and local levels. Therefore, engaging specialized real estate lawyers is highly advisable.

1. State, Regional, and Local Regulations: The Spanish legal system is characterized by its decentralized nature. Each autonomous community in Spain can have distinct laws affecting real estates and property transactions. For example, while some regions may establish restrictions for renting out properties (ie. Limitations or prohibitions on carrying out short-rental activities, limitations on long-term rental prices etc.), others might have significantly varying taxes and fees associated with property purchases, and others can also count with a singular regional Civil Code that regulates in a particular manner important aspects such as the initial down payment contract (“Arras” in Spanish) when buying a property. Municipal regulations can also considerably impact property use and renovations.

READ ALSO: Which cities in Spain have new restrictions on tourist rentals?

2. Legal Representation: A lawyer with expertise in Spanish real estate law can navigate these complexities, ensuring compliance with all applicable regulations. They can conduct due diligence, verify property titles, and check for any encumbrances or legal issues that could affect the purchase. Legal representation is not just a formality but a necessity in Spain to avoid potential pitfalls.

READ ALSO: What’s the difference between a gestor, a lawyer and a notary in Spain?

3. Immigration legal advice: In connection with the property you want to buy in Spain you should receive the proper immigration law advice. Nationality and Immigration regulations in Spain are a complex but at the same time exciting field to navigate to find the best solution that will be matching your concrete case and circumstances (i.e: Digital Nomad Visas, Non Lucrative visas etc.)

LISTED: The visa options Americans can apply for to live in Spain

Fiscal Considerations

Taxation is another critical area that requires careful attention. Spain’s tax system includes various taxes that can impact the overall cost and benefits of owning a property.

1. Tax Residency: Determining your tax residency status is essential as it influences the taxes you are liable to pay. If you spend more than 183 days in Spain in a calendar year, you are considered a tax resident. You can also qualify as tax resident in Spain if having in this country the centre of your economic interests. Tax residents are subject to Spanish income tax on their worldwide income, while non-residents are taxed only on income generated in Spain.

READ ALSO: Do I have to pay tax twice if I’m an American living in Spain?

2. Income Tax and Wealth Tax: Spain imposes income tax (IRPF) and wealth tax (Impuesto sobre el Patrimonio) differently across its autonomous communities. The rates and allowances can vary, so understanding the specific regulations in the region where you plan to buy is crucial. For instance, some regions might have higher exemptions for wealth tax, impacting the overall cost of owning high-value properties.

3. Rental Income: If you plan to rent out your property, you need to be aware of the taxation rules on rental income. US tax residents are currently taxed for their rental incomes in Spain at a 24 percent flat rate on rental income (not being allowed to deduct any expense), whereas Spanish tax residents include rental income in their general taxable income (with different expenses being tax deductible), which could be taxed at progressive rates. Counting with the appropriate assistance of tax lawyers specialized in American clients and with a full knowledge of the US-Spain Tax Treaty can considerably help you to improve your tax bill.

READ ALSO: What the new Spain-US social security deal means for Americans

4. Special Tax Expats Regime: Implemented at the time that David Beckham joined Real Madrid (and known because of that as “Beckham Regime”), that regime may allow you enjoying the pros of being a tax resident in Spain, by living in this country exceeding 183 days per year, but taking advantage of a 24% flat rate and only making taxable in Spain labour incomes together with other incomes generated in Spain but not being taxable in Spain those sourced abroad. This tax regime has a maximum total 6 years duration and those who are eligible for it they also avoid filing Wealth Tax in Spain for their worldwide wealth.

To properly apply for it, it is always recommendable carrying out a previous tax planning and analysis with specialized Tax Lawyers before buying your property and moving to Spain.

READ MORE: 

Property Inspections

A thorough technical inspection by a qualified architect is advisable to ensure the property meets all regulatory standards and is free from structural defects.

1. Construction Defects: Architects can identify potential issues such as structural integrity, water damage, and compliance with building codes. This is especially important for older properties or those that have undergone renovations.

2. Urban Planning Compliance: The inspection should also verify that the property complies with local urban planning regulations. Non-compliance can result in significant fines or even demolition orders.

READ ALSO: Do I need planning permission in Spain and how do I apply for it?

Buyer’s Agents

Unlike real estate agents who typically represent the seller and defend his interests, buyer’s agents work in the interest of the buyer, offering numerous advantages.

1. Local Market Knowledge: Buyer’s agents are well-versed in the local market conditions and can provide valuable insights into different neighbourhoods, school districts, community amenities etc. This knowledge helps in identifying properties that best match your preferences and needs.

2. Fair Pricing: Buyer’s agents can help negotiate better prices. They are familiar with the local market rates and can prevent the common practice of overpricing properties for foreign buyers.

3. Due Diligence: By conducting thorough market analyses and property evaluations, buyer’s agents can ensure that you make an informed decision. They also handle the negotiation process, striving to secure the best possible deal on your behalf.

READ ALSO:

Financial Advice

Securing favourable financial terms can result in substantial savings, making it essential to seek expert financial advice.

1. Currency Exchange: For American buyers, currency exchange rates can significantly impact the cost of purchasing a property. Working with a reputable currency exchange provider can help you get the best rates, reducing overall expenses.

2. Mortgage Conditions: Comparing mortgage conditions from different lenders is crucial. Spanish banks offer various mortgage products, and an independent financial advisor can help you find the most favourable terms, considering interest rates, repayment periods, and other conditions.

READ ALSO: What non-residents should now about getting a mortgage in Spain

Conclusion

Buying a residential property in Spain involves navigating a complex legal and fiscal landscape.

By engaging specialized lawyers, conducting thorough property inspections, utilizing the services of buyer’s agents, and counting with expert financial advice, American buyers can mitigate risks and make informed decisions.

With careful planning and the right support, purchasing a home in Spain can be a rewarding investment and a gateway to enjoying the country’s rich culture and beautiful landscapes.

This article was written by Maryem Essadik, immigration lawyer and head of English-speaking international law firm in Madrid Marfour (Contact: +34 698 917 840, [email protected]).

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