Spain is still the most popular country in Europe for Brits abroad — Hoxton Capital Management
Spain is still the most popular country in Europe for Brits abroad
Spain is still the most popular country in Europe for Brits abroad, and it’s easy to see why. With its incredible landscapes, beaches, food, climate and cities, what’s not to love about it? It seems many Brits still love the idea of having a holiday home in Spain or retiring there full time, and in a post-Brexit world it is becoming an increasingly appealing choice when compared to other European destinations.
The most popular relocation destination remains Australia, however, for those not wanting to move so far away, Spain ticks the most boxes. There are currently almost 4 times more Brits living in Spain than there are in the next most popular European destination, France.
Interestingly, for those harboring a dream of owning a place in the sun, in our post-Brexit current Covid climate, it has become a buyer’s market and Spain is more appealing than ever for those who are deposit ready and looking.
The rating agency Standard & Poors predicted house prices in Spain to drop the most in Europe due to the fallout of the pandemic, but to also see the sharpest rebound towards the back end of 2021. Given the large amount of second homes that make up the market, it seems to be a repeated trend that when times get tough, many people sell off assets that they deem non-essential. There was a similar story in Spain during the 2008–9 financial crisis where a tough time for some presented opportunity for others. By 2022, Standard & Poor’s expects a sharper rise still — up to 4.5% capital appreciation.
This means that within the space of a couple of years, house prices in Spain will experience one of the biggest price fluctuations of Europe’s main economies, from a 1.4 percent fall to a 4.5 percent rise. Many Brits have started to seize the opportunity already with an incredible 53% of all inquiries from non-Spanish buyers, being British.
Why are Brits increasingly choosing Spain?
One reason for the increase in interest from Brits may come as a consequence of Brexit, as Spain offers a compelling residency program that would allow many Brits to live there full time even as non-Europeans. This could also allow them to acquire a Spanish passport meaning they would have the same freedoms of movement as before.
Spain’s golden Visa Program
Spain launched its golden visa programme in 2013. An investment of €500,000 in real estate (1 or multiple properties) will gain family residency. The Spanish investor visa can be renewed every two years. After five years it is possible to gain permanent residency and after ten years citizenship. It is not necessary to live in Spain in order to retain and renew the residency visa permit.
Other reasons for choosing Spain
Besides the 320 days of sunshine and the 350km of coastline, there are a number of other factors that come into play. We are seeing a remote working revolution and many countries are capitalizing on it. The UAE for example, has created remote working visas to lure in those who can perform their function from the comfort of their own homes. Whilst Spain hasn’t created any specific remote working incentives, thanks to the residency program it will be the obvious choice for many. Travelling to and from Spain from the UK is incredibly easy and affordable and there’s many daily flights available.
The process of buying property in Spain
Property transactions are simple & straight forward, often a far quicker process than in the UK, with the entire process being as short as 6 weeks in some cases. The market is well catered to the British buyer, with many companies specifically set up to service British clientele.
Originally published at https://hoxtoncapital.com on February 17, 2021.