Retire to Spain

Spain is the number one choice for the one-in-five Britons who are considering living abroad part-time or full-time when they retire and it's the number two selection for Germans after Austria.

While some are attracted by guaranteed sunshine, good food and wine, stunning beaches and a wide choice of homes at reasonable prices Spain also offers a unique culture, spectacular unspoiled countryside, mountains and nature reserves; a wealth of historic sites, world-ranked museums and galleries and some of Europe 's most exciting cities.

With justification the Spanish claim to have 'everything under the sun'.

Budget airlines have made many of the more popular areas of Spain, particularly the Mediterranean coast, easy and cheap to get to and this is also a bonus for those buying a home which they intend to let full or part time or to run as a business offering B&B or guest accommodation.

And there's a good infrastructure of support, both from local tradesmen and services and from agencies who can manage the property for you if you don’t intend to occupy it permanently.

But be very careful about retiring to Spain if you don't have enough money to return to Britain without needing the equity in your Spanish property. The overdevelopment of the coast (see news items on this site) has caused a collapse in property prices and many people who want to return now cannot because they canot find buyers - even at a considerable discount to the purchase price. The property slump is affecting much of the property market in Spain - not just on the coast - because investors are still buying off-plan on coastal developments.

Purchase fees are relatively high - about10% of the value - and will need to be recouped on re-sale.

Foreigners can freely buy property but they can't remain for more than three months in succession without obtaining a 90-day extension or a residence permit. Visitors with a permanent address in Spain can remain for a maximum of 90 days in succession and a total of six months in a calendar year. Decide how you wish to use the property and then find out whether you will be able to do this and, if so, what visas or permits you need before you buy.

If you intend to live in Spain for longer than six months you must apply for a residence permit. It's estimated that three quarters of Britons living in Spain do not have the necessary permiso de residencia and this is not only illegal, it is causing major problems both for them and the Spanish local authorities.

Britain pays Spain €175 a month for every pensioner legally resident there. But because most are not, the local health services are struggling to cope with the increasing number of elderly needing expensive treatment or major surgery.

Many hospitals now refuse to treat Britons who cannot speak fluent Spanish unless they bring an interpreter because, they say, dealing with people who cannot speak Spanish increases consulting time and could lead to misdiagnosis.

In Calpe , on the Costa Blanca, the official population has almost doubled with Britons outnumbering the Spanish. But the town's real population is nearer 50,000 and as central funds are allocated on a population basis the local authority is struggling to provide essential services.

This has generated media coverage which is very critical of the illegal retirees and could lead to action by the government. If you are found to be living in Spain without the correct permit you could be fined or even deported.

If you plan to live in the home during the summer you might be sharing the attractions with thousands of tourists with the attendant noise, traffic congestion and pollution.

If you plan to let in the summer but live there in the winter make sure everything doesn't close down. The Costa Dorada has seen some of the highest property price rises in Spain but outside July and August many of the resorts are quiet and facilities and amenities are closed.

The Costa del Sol has become notorious as a haunt of fugitives from justice but ignore the tabloid label 'Costa del Crime' - they won't bother you. Local villains might, however, and foreign-owned homes and apartments that are obviously left vacant for weeks at a time - particularly in resorts - are targets. Statistically there's a burglary every six minutes. If your home will be left vacant for any length of time you will need steel armoured doors and heavy duty security grilles of steel shutter on windows.

There's no need to be paranoid about this - professional and obvious security precautions will deter burglars but take advice from neighbours and local security companies before you buy and add the cost of what they recommend to the purchase price.

Some excellent advice on home security - and ever other aspect of buying a home in Spain , can be obtained in Buying a Home in Spain by David Hampshire (Survival Books). Click on the logo to buy this book and see other titles about buying a home and living in countries around the world.