Moving to Spain - rent out house in UK

kilrail

Having downsized 6 years ago we took advantage of the low prices in Spain and bought a very nice 2 bed 2 bath apartment in a small town 4 miles from the coast. All very nice and having just retired we have spent 12 weeks here to see how we like it.

So far so good and we are seriously thinking of moving permanently but then have the dilemma of what to do with our house in UK. It's a 3 bed semi and could easily be rented out but if the idea is to avoid stress etc then I feel that sometimes renting out a property can create a stressful situation depending, of course, on tenants etc. We both have pensions so do not need the income.

The main beneficiaries in our wills are our grandchildren and I was thinking that maybe if we set up a trust and put the house in this trust that might be a solution, but again there would still be the question of trustees (probably us) so nothing gained.

Of course the other option is to just sell up and still have a trust set up with the cash (grandchildren are 16 and 14) and we become Spanish residents.

I would welcome any comments or feedback.

brit1234

I think it is best to have a uk safety net if things go wrong in Spain. If Spain gets chucked out of the Euro and returns to the peseta the weaker currency may make it difficult to return to the uk.

It may be best to rent out the uk property incase as you will always have somewhere to return to if things go wrong in spain. However you will need trusted people close by to look after it. Or you could sell but put the money in high interest accounts and British currency share ISAs. I wouldn't sell and invest in Spanish property

goodluck

BitterAndTwisted

Pay close attention to the rules about entitlement to NHS treatment for foreign residents. This may not be a concern now but could be a very pressing one some time in the future.

Under the circs, with Spain's economy going down the sh!tter, I'd be very, very reluctant indeed to consider burning any bridges any time soon.

If you need tax-planning etcetera I'd recommend you consult an expert.

kilrail

Fair comment and I don't intend to invest in Spain for sure. Of course, if Spain exits the Euro, and returns to the Peseta, then I would expect our income, which is all in Sterling, would have greater buying power here, so day to day living should, in theory, get cheaper. We already own the apartment and don't see it as an investment in any case.

I suspect I have asked an impossible question as it is very much an individual choice but I appreciate any comments that might help me / us decide.

The big plus for me has always been the weather and the healthier lifestyle i.e. who wants to go walking in the rain. Also the utility bills are lower and cost of living a bit lower but not as much as in the past. I think our minds are made up as to living here in Spain but severing all ties is a different matter and I can see why other people keep an address in UK but is it just a cop out?

BigAunty

What if you need care homes or care costs - will your pensions cover the complete cost?

Generally, the transfer of capital to others, including property, can be investigated by a local council to see if the applicants have been considered to have deprived themselves of capital. Have a look at the Age UK site or similar to understand the issues around deprivation of capital and care home fees.

This thread has some relevance in that a poster has provided some links to a helpful website that has fact sheets.

https://forums.moneysavingexpert.com/discussion/3922457