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BREXIT

How Brexit clouds life in Spanish sun for British second home owners

At the end of the transition period on December 31st, the 90-day rule kicked in for Brits with second homes in Spain.

How Brexit clouds life in Spanish sun for British second home owners
Photos by AFP's Jose Jordan

After retiring from her teaching job in 2019, Jane Pennington-Fryer looked forward to spending the cold, damp British winters at her home in southeast Spain each year.

But since Britain's exit from the EU came into effect on January 1st, she can no longer stay as long as she would like at the duplex she bought with her husband in 2018 in Puerto de Mazarron, a resort on Spain's Mediterranean coast.

The couple arrived at their home in Spain in October and had hoped to stay until the end of April, as in other years. Post-Brexit rules, however, mean they will have to leave by March 31st.

“We are gutted really because we have worked all our lives towards getting a property abroad in the hope we could spend time there,” Pennington-Fryer, from northwest England, told AFP.

'Very unfair'

Between 800,000 and one million Brits own property across Spain, mainly along its sun-baked, southern coast.

The roughly 370,000 Britons registered as residents can still come and go as they please but British tourists and those who have not taken residency – even those with a home there – can now only spend a maximum of 90 days in the country during any 180-day period.   

If they want to stay longer they have to apply for a long-stay visa, with no guarantee of success.

“This doesn't work for somebody who wants to spend all winter or all summer in Spain,” said Andrew Hesselden, a 40-year-old communications consultant who divides his time between London and the island of Majorca.

Hesselden heads a group representing some 900 people lobbying Madrid to allow Brits to use their homes for 180 days in any 365-day period.    

Spaniards and other European Union nationals can currently stay in Britain for up to 180 days without a visa, he pointed out — a situation he called “very unfair”.

The limit on the length of time Brits can now stay affects retired people as well as young people looking to telework from Spain for extended periods.   

And that also means lost business for Spanish firms, he argued.   

“It doesn't make sense for Spain, it doesn't make sense for British people.”

'Hate to leave'

Chris Robinson, a 68-year-old retired manager, estimates he spends around €30,000 ($36,000) a year when he and with his wife stay at their villa in Almeria, southern Spain. The money goes on eating out, playing golf, building maintenance and other expenses.

Under the post-Brexit rules “there is going to be 60, 70 days where we want to be in Spain but we can't be,” he told AFP by telephone from his home in Sheffield, England.

Robinson said he now regrets selling a property he owned in Florida where he could stay for 180 days continuously. He is considering selling his Spanish villa if there is no change in the post-Brexit rules in the next year.

“It is a wonderful place where we are, we like it, we have a lot of friends there and I would hate to have to leave,” he said.

Like all those who spoke to AFP, he said he opposed Brexit because he understood the threat it posed to their life in Spain.

“I actually consider myself to be European, I am totally anti-Brexit.”     

British nationals remain by far the biggest foreign buyers of property in Spain, snapping up about one in seven homes purchased by foreigners in the third quarter.

But since Britain voted to leave the European Union in June 2016, sending sterling down against the euro, demand has slackened.   

On top of that, the pandemic has meant restrictions on international travel that also hurt demand by all foreign buyers.

The 90-day rule is also hitting demand from Britons looking to spend winters in Spain, said Mark Stücklin, head of the Spanish Property Insight website.   “That is a segment of the market that definitely will be affected and be discouraged by this,” he told AFP.

By AFP's Daniel Silva

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VISAS

EXPLAINED: When you can exchange visas in Spain

There are several different types of visas and residency permits you can get to be able to live and work in Spain, but what happens when your situation changes and you want to exchange your visa for a different one?

EXPLAINED: When you can exchange visas in Spain

There are many different reasons you may want to exchange the type of visa or residency permit you have. Perhaps you’re on a student visa and have completed your studies, but still want to be able to stay in Spain. Or maybe you’ve been on a one-year non-lucrative visa, but can no longer afford not to work and want to exchange it for one where you’re allowed to work. 

Read on to find out which visas are possible to exchange and which are not. 

Student Visa to Digital Nomad Visa 

The simple answer is yes, it is possible to exchange your student visa for the new Digital Nomad Visa (DNV) that first became available last year. This will, however, depend on your individual circumstances and what job you plan on doing.

Firstly, in order to apply for DNV you must either have a degree from the field you want to work remotely in or have three years’ work experience in that industry. If you’ve just finished your studies this could be possible, but if you were studying something different, it could prove difficult.

If you are an older student, you could definitely have three years’ work experience in the industry you want to work in or you may have gained the experience working part-time in Spain while on your student visa.

Secondly, you must make sure you have worked for the company that hired you for a remote role for a minimum of three months before you apply for the DNV. The main caveat is that the company has to be registered outside of Spain as you are not eligible for the DNV if more than 20 percent of your income comes from inside Spain. This means that you will have to secure a remote job in another country while still on your student visa, making sure that you stick to the 30 hours a week you’re allowed to work.

Non-Lucrative Visa to Work Permit or Self-Employed

Being in Spain on the Non-Lucrative Visa or NLV can prove to be expensive because you’re not allowed to work, but have to prove you have a significant amount of savings or passive income. If you want to stay in Spain, beyond the initial year, you may be considering a different residency permit. Luckily, you can exchange it for a work permit or self-employed permit in a process called residence modification.

During your last few months on the non-lucrative visa, you are able to apply for jobs in Spain, which may give you the possibility of being granted a work permit. There are many prerequisites, including having lived in Spain for a year and being offered a pre-employment contract.

You could also decide to become self-employed at set up your own business. In order to do this you will need to meet the requirements that current legislation requires for opening and operating your chosen business. You will also need to sign up to the autónomo system, pay your own social security fees and submit your taxes five times a year.

READ ALSO: Should I change my non-lucrative visa for another residency permit in Spain?

Student Visa to Work Permit or Self-Employed

If you’re living in Spain on a student visa, then it’s relatively straightforward to exchange it for a work permit or become self-employed, if you want to be able to stay longer. The main requirement is that you have to have lived in Spain for three consecutive years, before you exchange it. This means, it’s really only possible for those who are doing a long-term course, such as a degree at a Spanish university. If you’re simply here for a year doing a language course, then it won’t be possible.

If you have been here for three years on a student visa, you have two options – the first is to find a job and become an employee by getting a work permit and the second is to become self-employed. If you opt for the first, the easiest way is to get a job offer and apply for the permit that way. Because you’ve already had a student visa and been here three years, it will be easier for companies to hire you as they won’t have to prove that there isn’t anyone from Spain or the EU that can do it first or that they have a shortage of professionals who can carry it out.

If you want to exchange it for a self-employment permit, you will have to present a business plan in order to get approval and prove you have the correct qualifications and experience to carry it out. If approved, then you will typically sign up to the autónomo system.

Student Visa to Entrepreneur Visa

Student visas are the easiest visas to modify in Spain, meaning you have many different options to exchange them if you want to stay longer. The Entrepreneur VisaVisado de Emprendedor is another option that will allow you to stay for a period of three years (with the option of exchanging or extending). It is, however, slightly more complicated to exchange to than simply getting a work permit or becoming self-employed.

The Entrepreneur Visa is especially for those who want to set up a business considered to be innovative with a special economic interest for Spain. Unlike becoming just an autónomo, you must agree to be able to create employment opportunities for locals in the future. You could also in theory exchange your NLV for an entrepreneur visa too, provided you can prove that you haven’t done any work while you’ve been living in Spain for the year on your NLV.

Non-Lucrative Visa to Digital Nomad Visa

It may sound confusing, but you can now actually exchange your NLV for a DNV too. Even though you are not allowed to work while on the NLV, you can actually decide to change it for a DNV, so that you will be allowed to work remotely either for a company or for yourself via clients. The Unidad de Grandes Empresas (UGE), the body that deals directly with DNV applications, has confirmed this is possible and The Local has heard of people who have successfully done this too. The only thing to remember is that no more than 20 percent of your income can come from inside Spain once you change over. 

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