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PROPERTY

VERIFIED: Is it true these Spanish villages are paying people to move there?

International and national news sites have recently reported that Spain has a number of villages where individuals or families are being paid to move there, or offered free accommodation and work. The Local Spain decided to investigate if these claims were true by speaking to the villages themselves.

VERIFIED: Is it true these Spanish villages are paying people to move there?
The village of Ponga in Asturias. Photo: Carmenmoran / WikiCommons

Covid restrictions, the advent of remote working in Spain, a new visa for digital nomads and improving internet connections are all currently contributing to making rural Spain a sought-after destination for people around the world.

As a result, a number of popular news sites and media outlets in the UK and US have published articles listing the Spanish villages that are allegedly now paying people to move there in a bid to solve their depopulation problems. 

As The Local Spain has been covering all the latest developments for remote workers in Spain in 2021, the promises of endless offers of free accommodation, work and in some cases money didn’t seem to add up. 

So we decided to get on the phone to the ayuntamientos (town halls) of each of the villages listed in these international media outlets to find out if it was true.  Some of their answers painted a very different picture from what was being suggested in the local and foreign press. 

Ponga, Asturias

The village of Ponga in Asturias. Photo: Carmenmoran / Wikimedia Commons

Reports from across the world have suggested that the village of Ponga in Asturias (northern Spain) is giving couples or families €3,000 to help them settle in, and a further €3,000 for each baby born in the village.

When The Local Spain spoke to a representative from the town hall however, they stated that “the offer hasn’t been available since 2007 and we can’t understand why it’s making headlines again”.

Unfortunately for Ponga, the scheme didn’t work out as planned as there weren’t enough jobs available for the additional families, so many had to pack up and leave.

Rubia, Galicia

Several articles have recently reported that the municipality of Rubia in the Galician province of Ourense (also northern Spain) will supplement new residents’ income by an extra €100-150 per month.

When The Local Spain called Rubia Town Hall, village authorities said that what was being reported in international media “is simply not true”.

Griegos, Aragón

The village of Griegos in Spain’s Teruel province. Photo: Chantejot /WikiCommons

Another village that is reportedly trying to attract new residents with incentives is Griegos in Aragón’s Teruel province (northeast Spain).

Reports stated that Griegos Town Hall would offer three months rent-free to any families willing to move there.

While this was true at one point, a spokesperson from the village of 150 people told The Local Spain that “we have already found families to fill our quota and are no longer offering this incentive”.

A Xesta, Galicia

The hamlet of A Xesta in Galicia. Photo: Simon Burchell / WikiCommons

Other media reports wrote that another Galician village, this time in the municipality of Pontevedra, was trying to attract new residents by offering them reduced rentals from just €100 per month.

The Local Spain tried to reach out for comment from authorities in the hamlet but received no answer.

It also proved impossible to contact authorities in Olmeda de la Cuesta, in the central Spanish province of Cuenca, with reports saying the village has several plots of land for sale for as little as €200 to try and attract people to come and build houses there.

The village of Olmeda de la Cuesta in Cuenca. Photo: Diego Delso / WikiCommons

Camarena de la Sierra

Camarena Camarena de la Sierra, Aragon. Photo: Marcela Escandell / Flickr

Finally, it was recently reported in the Spanish press that the village of Camarena de la Sierra, also in Aragón (in northeast Spain) is offering new residents job offers and help with accommodation.

When The Local called for clarification, local authorities confirmed “this scheme does indeed exist, but places are limited”.

“There is for example an empty bakery with an attached house that someone could move into,” a spokesperson said.

“Each application would be assessed on a case-by-case basis depending on the skills each person has and what they could bring to the village.”

Conclusion

Offers like the ones listed above quickly go viral and as a result end up outdated after very little time, so it may be best for you to do your own research and contact the actual villages if you are indeed interested in a particular place.

If possible, try to call the village ayuntamiento in question to find out the exact conditions or if the offer is still valid. 

There’s also nothing stopping you from pitching to authorities in any village in rural Spain (not just those promoting themselves) a service you can offer in return for lower rent or a free home. It could be English lessons at the local school or setting up a business in their pueblo (village).

Alternatively, there are several Spanish villages that we can confirm are trying to attract remote workers to live there due to their dwindling populations, but they won’t necessarily pay you to move there. 

FIND OUT MORE: The Spanish villages that want remote workers

A total of 30 towns and villages across Spain have joined the Red Nacional de Pueblos Acogedores or the National Network of Welcoming Villages, meaning that the places listed on their website are regularly updated with the latest information and thus are actively looking for remote workers when you carry out your search. 

Before you think about moving to any of these villages, you should also be aware that life in rural Spain has its challenges.

Villages are often underpopulated and those that remain tend to be older, in some places there are increasingly fewer services such as banks, and speaking Spanish is a must.

Read here to find out more about about the pros and cons of moving to a small village in rural Spain. 

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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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