Re: Buying in Spain after Brexit

[ricky230]

Hi all,
Well we finally took the plunge and bought a flat in Pollensa Old Town. Hope to complete soon. My worry at the moment is Healthcare in post Brexit Spain. Does anyone have thoughts? I have heard that Spain wants to do a reciprocal deal wit us as each country has 700000 or so people living there, so a mutual health deal would be a zero sum game. Anyone heard anything definite? Its fine to get private insurance until you actually need it, then you hit problems...like a banker who lends you an umbrella and asks for it back when it rains...

 

[Deanscroft]

You don't say if you have bought your apartment as a holiday home or if you are planning to live here.
For holiday use, on the completion of Brexit the European Healthcard will cease and you will need to take out holiday insurance to cover your stay.
For residence it is far more complicated. If you are in receipt of a UK state pension the present system is that the UK pays the Spanish Health Service a set monthly sum to get access on the same basis as a Spanish pensioner ie full health cover including free prescriptions. It looks like this will continue after Brexit. If you are not a UK state pensioner then at present you get reciprocal healthcare which is a term that is generally misunderstood. Many people think it means that you get the same healthcare here as you would in the UK. Nothing could be further from the truth. It means that you get the same healthcare as a Spanish National with the same circumstances. As Spain has a contribution based health system (the UKs is residence based) you can't draw out if you havn't paid in so, for the UK National retiring early to sit in the Spanish sun there is no free healthcare here. In the likely event that the UK and Spain do a deal this will probably continue unchanged. The only way to get access to the Spanish Health Service if you are not a pensioner is to pay in either by being a Employee or by registering as self employed. As an Employee the contribution is about 5%. As self employed there is a set sum which is about 250€ pcm.

 

[Big Sal]

Great information Deanscroft.

In addition, a further option is to pay into the Health Service of the Balearic Islands.
-65 years old = monthly payment of 60.
+65 = monthly payment of 157.

See link to previous post for more information:
https://www.forum.puertopollensa.com/living-working-pollensa-area/13581-healthcare-2.html

 

[ricky230]

Thanks all, very interesting. I reckon Spain will be unwilling to do a direct reciprocal with UK as their ex pats over here are generally young workers whereas in Spain the Brits are older and often over 65, so much more likely to need healthcare. It would be an uneven arrangement hence the stipulation that you need to be working to qualify, i.e. under 65 for the most part.

Looks like it will be expensive for me aged 61 and also for my wife. Brexit eh, what a brilliant idea...not.

 

[lollipop]

Ricky 230 Brexit wont change anything for you other than the EHIC. 61 yr olds have to have private cover or pay into the Spanish system now.

 

[ricky230]

Hi again,
Does anyone have recent experience about the transfer of funds to buy a property? This may not be the right part of the forum? So far I know little about this except to watch in alarm as the rate fluctuates on a daily basis! ( I'm no George Soros) The banks offer poorer rates than the specialists when sending money across but I am pretty nervous about transferring money to an organisation I have never dealt with. So far I've seena big difference in rates which when multiplied by the purchase price means I need to take this seriously!

 

[PP76]

Ricky,
Speak to your bank, when we bought our villa in 2016 I contacted them before hand they initially said they could not change the rate I persisted and asked them to consult the Head Office, they came up with a better exchange rate which was very near what I could have got elsewhere but gave me the security of moving that amount of money with my own bank.
It's worth a try they can only say yes or no.

Enjoy your property

 

[ricky230]

Interesting thanks, I had not thought of that one!

 

[Disorderly]

When we bought our property last year we used Smart Currency Exchange. They were absolutely reliable and helpful. We use them now from time to time to transfer funds to our Spanish account.

Just check with your Spanish bank to see what their charges are for large money transfers. We arranged our Buildings Insurance through the bank and they waived all charges for the big money transfer. Now we can transfer up to €20,000 without charges. We use CaixaBank by the way.

 

[Gommar Goffer]

I used to use Smart Currency when I was importing wine to the UK. For small amount now I use Transferwise

 

[Rockape]

There was a horrific story in the UK press last week about a well known FX company (Premier FX) that took £432k from a woman transferring her money to buy a house and had disappeared.

Scary stuff, as I used one of these companies, albeit with a series of smaller sums.

 

[prattyIG8]

We use Transferwise too.

 

[Gp1602]

We use transferwise. Fast and best price by far. Wish I had used them when we bought ours.

 

[ricky230]

Surveyors in PP??

Has anyone used a Surveyor when buying in Pollensa? It seems almost unheard of to get a survey on a flat but here in UK it would be the other way round, and I'm sure Spanish buildings have there share of issues?

 

[Rockape]

Has anyone used a Surveyor when buying in Pollensa? It seems almost unheard of to get a survey on a flat but here in UK it would be the other way round, and I'm sure Spanish buildings have there share of issues?

I personally didn't, but as I work in property, I felt qualified enough to do my own checks. The buildings are considerably more basic than the ones in the UK so should be easy enough to do visual checks for structural issues. Otherwise, its checking stuff like drains, electrics etc which can mostly be minor issues that are easily solvable.

I'm not saying its not worth it, I'm saying I didn't bother and 18 months on, have had no problems.

 

[PP76]

Ricky,
I have replied to your PM giving details of a British surveyor working in Mallorca.
John

 

[ricky230]

Great Thanks!

 

[Rockape]

If you have a company managing your apartment block, you should speak to them too, as they will be aware of any problems that may have occurred, or are ongoing. Thinking Roof/drains/power etc.

 

[ricky230]

Yes I think my Solicitor is asking them. I am not too concerned on structure, it seemed okay, asbestos is something in older flats in the UK that can be a problem and that niggled me a bit, although I daresay the Management would be aware of something as serious as that? No idea what the standards are in Spain compared to UK