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MOVING TO SPAIN

The charms and challenges of life in Spain for its Irish residents

With some 15,000 Irish citizens now living in Spain long term, what is it that attracted them to make the move a permanent one? What were the challenges and what's their advice for other Irish nationals considering relocating?

The charms and challenges of life in Spain for its Irish residents
Neil, Dermot, Sophie and Andy are four Irish nationals who have made Spain their home. Photos: Handouts

Madrid-based Irish reporter Cormac Breen sat down with four Irish nationals to ask them what it is about Spain that has seen them come to call it home, what brought them here first, their experience of life here, and any advice they would offer to someone from Ireland considering Spain as a possible home away from home.

What brings Irish people to Spain?

As both countries are members of the EU, Irish people can easily live and work in Spain without having to worry about visas and or work permits. The global financial crash of 2008 severely impacted the Irish economy and the subsequent years of financial austerity led to high unemployment levels in the country. At this time, many young Irish graduates chose to move abroad in search of work.

Neil, originally from Limerick, told The Local why he decided to make the move to Spain: “I came in 2009 when the economy in Ireland and the world at large was crashing and there was no real reliable teaching work in the language schools in Ireland. The economic crisis that started in 2008 actually turned out to be a boom time for the language schools in Spain as many unemployed people tried to add English to their skill set to improve their employment prospects so there was plenty of work here”.

Spain is also a favourite of Irish Erasmus students with almost one in five choosing to study here.

For Sophie, originally from Tipperary, her love affair with Spain started after a year spent studying in Almería on the south coast.

“I first came to Spain to study Spanish as part of my degree, European studies. After I finished my degree, I came back to Spain to work, not because I couldn’t find work at home, but just because I wanted to come back here. I really like Spain as a country, the weather, the food, but I really love the Spanish way of life.

“The people are great too. I think they are very welcoming and fun to be around. They’re very family oriented with an attitude that is more work to live than live to work”.

Sophie works for PwC and has been living in Spain for six years.
 

What makes Spain such an attractive place for Irish people to live in?

It goes without saying that the weather plays a significant role in why so many Irish choose to stay in Spain. That is not to say Spain has 365 days a year of sunshine and warm temperatures. In fact, the climate in many northern regions such as Galicia might leave you thinking you never left Ireland with its windy and wet weather. Having said this, Spain boasts some of the sunniest cities in Europe with places such as Málaga, Alicante and Valencia enjoying up to 350 hours of sunshine per month with an average temperature between 15 and 20 degrees Celsius.

For Andy, originally from Limerick, Spain’s climate is one of the main reasons he has called España home for over ten years.

“To live somewhere where people come for holidays, to have so many sunny days, so much dry weather, so much outdoor life, where even when walking to work in the morning it’s dry most mornings, and very rarely windy.

“It’s a small thing, but it affects every aspect of life just to see people outside, seeing old people sitting in the street, seeing people eating outside. Living here and just to be outside a lot of the time, I just think it’s better for my mental health personally.”

Andy works as an English teacher and has lived in Spain for 10 years
 

While it may not seem this way at first, Spanish and Irish people share a similar outlook to life.

A love of family and socialising, both countries place time spent with people high on their list of priorities and for Neil, this was one of the reasons why he has decided to stay in Spain.

“I think people here have a fairly laidback attitude to life, which in some circumstances can be annoying, but in general it’s a positive. I think Spanish people are quite like Irish people, they are friendly and open and enjoy socialising. It can be hard to see that maybe if you don’t have the language, but once you do, I think it’s quite easy to settle in.”

Sophie pointed to Spanish people’s pride in their country as one of the main reasons she loves living here.

“I like the way Spanish people are very passionate about Spain and they’re very proud of their country. They know a lot about their country in general and Spain is just such a richly diverse place with so many different aspects to the culture depending on where you go, language, customs, traditions, food, everything really.”

READ ALSO: Where do Spain’s Irish residents live?

What are the challenges Irish people might face living in Spain?

Moving abroad will always present challenges whether that be homesickness, culture clashes, language barriers or simply a feeling of isolation and loneliness.

“You’re always going to feel like somewhat of an outsider or someone who is a little bit different, which also can be a good thing sometimes,” Sophie told The Local Spain.

“It’s kind of nice in a way, sometimes to feel special, but then it’s also a drawback because there’s always a slight barrier to really feeling fully integrated, feeling part of the place you’re in.”

For Andy, language was the hurdle he needed to overcome in order to feel more at home in Spain.

“The language is one thing. I haven’t mastered the language, I get by, but that’s a big barrier to a lot of things. I really miss the kind of crack back home and the little interactions you have, kind of with people every day, just out and about. I really miss that. I love going home and having those interactions.”

Learning Spanish shouldn’t be a deterrent to anyone from Ireland considering a move to Spain. Starting it will be challenging and time consuming but once you get a grip of the basics and can start to have some basics conversations, you’ll feel yourself immersing more and more.

There are plenty of ways to practice and learn Spanish from language academies to social nights in bars for language learners. Making that initial effort at the start will pay dividends years down the line.

READ ALSO: Swapping Dublin for Madrid – The right escape from Ireland’s cost-of-living crisis?

Can Irish people expect a better quality of life in Spain?

Ireland, like most countries in Europe, has seen a sharp increase in the cost of living with many people having to cut back on their spending to save money. Spain has not been immune from the same financial pressure with inflation peaking at 10 percent this year.

For our interviewees, while the cost of living may be going up in a country already famous for its lower than average salaries, the minimum average being €1,166 gross per month, they still feel Spain offers much more in terms of the quality added to their life by living here.

“In terms of money, I make less here and there’s a big difference in wages compared to Ireland, so that’s definitely a downside,” Andy admitted.

READ ALSO: Dutch, Irish and Norwegians buying twice as many homes in Spain

“But sure look, you can’t save in Ireland, you kind of have to spend money to do things whereas here, even if you only have enough to get by, you go to the park or sit at a terrace, have a have a beer and relax.”

The same sentiment was echoed by Dermot, originally from Mayo, who noted how “definitely my quality of life here is better even if I’m not earning as much as I could be in Ireland.

“I never ate out much in Ireland, here it’s cheap and good quality and something you can do at least once a week if not more. On top of that the public amenities are great. There are so many pools, football pitches, gyms, ping pong tables etc. It’s much easier and cheaper to have fun here.”

Dermot works as a research physicist and has lived in Madrid for almost 10 years
 

Advice for Irish people moving to Spain

If this article has convinced you to swap Ireland for Spain, then you’re probably wondering what’s the best way to prepare for your move here. According to these four Irish in Spain, the answer is simple – start learning Spanish.

Neil put it plainly: “Start learning the language. You can definitely get by somewhere like Madrid without Spanish, just living in an English-language bubble – but you definitely won’t fully experience what it is to live here without learning Spanish”.

Neil has been living in Spain for over 10 years and works in the education industry.
 

Sophie also felt learning some Spanish was the best advice she could offer to anyone from Ireland thinking about moving to Spain.

“My advice to someone moving to Spain would be to learn Spanish, you can get by just hanging out with English speaking people, but I really think you would be missing out on what Spain has to offer and some great experiences”.

For Andy, his advice is to take a chance on the lesser-known parts of Spain that many Irish people might not consider when choosing a place to move here.

“Something I will say is if you’re thinking about Spain as somewhere to live, don’t ignore the north of Spain. Spend a couple of weeks here if you can before making the decision to move and try and explore as much of the country as possible. A lot of people kind of forget about the north of Spain, and when they think of coming here, they think of moving to Madrid or Barcelona or one of the cities down south.

Bilbao, Santander, San Sebastián, Galicia, there are so many great cities in the north. Galicia is quite similar to Ireland, and the people in different parts of Spain do have a different character as well, a noticeably different character. There is such an amazing variety of culture here, fascinating history, great food, wonderful weather and friendly people. It’s not just beaches and cheap beer!”

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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.

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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.

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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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