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Why is it important to have insurance in the community of neighbours?

Welcome. If you live in a building or housing complex, you have probably wondered whether it is necessary to take out community insurance. The answer is yes, and in this article we will explain why.

What is a Community insurance policy?

The residents’ association insurance is a protective shield against the number of claims that can occur in owner-occupied or neighbourhood buildings, such as a lift breakdown, a fire or water damage, among many others.

It is the right way to protect the whole building and the owners against any incident. And as we will go into detail later on, the advantages of taking out community insurance are many and range from savings on large payments to an improvement in coexistence.

Contact your property manager, they have the expertise to identify the essential coverages needed to protect homeowners’ associations. We understand that obtaining insurance for your community can be a daunting task.

Tailored coverage options are specifically designed to meet the unique needs of homeowners’ associations, condominiums and single-owner rental properties.

Is community insurance compulsory?

At a national level there is no law stating that it is compulsory to take out home insurance. According to the Horizontal Property Law (LPH), it is necessary to have a reserve fund; an annual sum to cover the conservation and repair works of the building or those derived from fires or floods.

As we have already mentioned, community insurance is not compulsory in Spain, and the need for this reserve fund does exist, although there are regional regulations (such as in the Community of Madrid or the Community of Valencia) that establish the obligation to have civil liability or fire insurance.

Advantages of taking out a residents’ association insurance policy.

Goodbye to large payments: By taking out a homeowners’ association insurance policy, you avoid having to face unforeseen and high expenses to repair damage to the common property. This not only eases the financial burden on homeowners, but also gives them peace of mind knowing that any problems that arise will be covered by the insurance company.
Improves coexistence: By avoiding arguments related to the payment of the contributions and repair costs of the common property, a more amicable and harmonious coexistence atmosphere is fostered in the community of neighbours. In addition, by having the backing of insurance, quicker and more effective decisions can be taken in the event of any eventuality that may arise.
It contributes to savings: By having a community of neighbours insurance, unnecessary and duplicated expenses can be avoided. For example, if you have a private home insurance policy that includes coverage for the common property, you can exclude that coverage and reduce the cost of the policy. In addition, by avoiding having to pay out-of-pocket expenses, you can use the money for other purposes.
No-claims renewal bonus: By not having to make use of the insurance, you can get a bonus on the renewal of the policy. This not only means additional savings for the owners, but also indicates that the residents’ association has kept its property in good condition and has avoided accidents or damage that may require the intervention of the insurance.

What does a community insurance policy cover?

Each company sets the basic coverages of its homeowners’ association insurance, including a greater or lesser number. However, there are some that the vast majority of homeowners’ insurance companies share, such as civil liability, material damage, water damage, community assistance and pest treatment and prevention. Depending on the residents’ association, insurers also offer a wide range of optional coverage to complete the policy. These tend to be the most common.

Obligatory coverage of a community insurance policy

Fire: cover for damage due to fire, explosions, implosions, lightning, abnormal electrical currents, floods and acts of vandalism.

Civil liability: covers indemnities and bonds for damages to third parties.

Optional coverage of a residents’ association insurance policy

Aesthetic damage: covers the repair or replacement of the aesthetics of the building.
Assistance in the building: special services such as surveillance, urgent repairs, telephone guidance, pest control, etc.
Reconstruction of gardens: protects the plants and trees in the building.
General pipe blockages: assumes the cost of unblocking general or community pipes.
Cars in garage: protection of vehicles in the event of fire, lightning or explosion.
Legal defence: covers legal costs and expenses related to claims processes.
Breakages: covers damage to insured community property such as glass, sinks, sanitary ware, etc.
Theft: replacement of keys and locks, replacement of stolen personal belongings or cash, renewal of documents, etc.
Employee accidents: covers compensation and medical assistance in the event of death or disability of community staff.
Inhabitability: in the event that the building suffers some kind of damage that prevents the residents from living in their homes, this cover covers the cost of temporary accommodation while the necessary repairs are being carried out.

Other extra coverage

Don’t leave your building vulnerable to unexpected incidents. Find out why community insurance is essential.

Civil liability of directors and administrators: if a member of the board of directors or the administrator of the building causes any damage to third parties in the exercise of their functions, this coverage takes charge of the payment of compensation.
Theft of common property: in addition to theft cover for neighbours’ property, some policies also include protection for the community’s common property, such as air-conditioning equipment, security systems, electrical installations, etc
Water damage: although some insurances include water damage in the fire cover, in other cases it is an independent cover that covers damage caused by burst pipes, water leaks, floods, etc.
Atmospheric phenomena: this coverage covers damages that the building may suffer as a consequence of adverse meteorological phenomena, such as strong winds, hail, snow, etc.
Community civil liability: although most insurance policies include civil liability cover, it is also common to find additional cover specifically for the residents’ association in the event of any type of accident or incident involving the association as an entity.

It is important to note that not all residents’ association insurance policies include the same coverage, so it is essential to read the policy conditions carefully to know exactly what is covered and what is not.

Exclusions in the community insurance: when the insurance company does not take responsibility

Each company has its own coverage and exclusions, although the most common thing is that they all coincide in not taking responsibility for the damage in certain circumstances:

When the damage has been caused on purpose.
In claims caused by certain natural phenomena, such as earthquakes or hurricanes.
Defects in the construction of the building.
In cases where maintenance has been poor or non-existent.

The importance of having the capital of the building properly adjusted.

When the policy is formalised, the real value of the building must be stated so that, in the event of a claim, the insurance will fully cover the cost of repairs.

The fact of insuring a property by putting a lower value than the real value is known as underinsurance.

It is also necessary to update the value over the years so that it always corresponds to reality.

How to choose the best Community insurance?

Carry out an exhaustive study, adapted to each community of owners, taking into account its specific characteristics (age of the building, type of construction, community services, surface area, annexes, etc.).

Avoid under-insurance by establishing correct values, from the insurance point of view, for the building and contents.

Review the coverages and exclusions in order to be very clear about what the community insurance covers and what can be rejected in the event of a claim.

To count on the help of specialists such as property administrators to facilitate the community’s decisions.

Frequently Asked Questions to have a insurance in the community

Answers to your questions

1. Why is it advisable to take out community insurance?

Community insurance provides protection for the building where you live against various potential risks (fire, theft, damage, among others) and also prevents conflicts between owners. For example, in the event of a fire, it facilitates the absence of additional financial outlays.

2 . What guarantees does community insurance offer?

Community insurance is a multi-risk policy that includes numerous basic covers (fire, explosion and lightning strike, smoke damage, electrical damage, vehicle collision and aircraft crash, vandalism, rescue costs, demolition and debris removal, loss of rent, uninhabitability, among others). It also includes optional guarantees such as theft, water damage and pest control, etc.

3. What types of communities can be insured?

We provide solutions and insurance for a wide variety of communities: residential buildings, premises and garages; office buildings, single-family housing developments, etc.

4. How is the insured value of a community determined?

Our team will advise you at all times. Accurately calculating the insured value is essential in order to obtain adequate insurance. Usually, the assessment is based on official information from the Cadastre about the built-up area of the building. With this data, together with the type of construction and the location, we can establish a reconstruction value.

5. What is meant by contents in a community insurance?

The content refers to the furniture and personal objects belonging to the community of owners, located in the common areas of the building and which do not have a privative character.

Why is it important to have insurance in the community of neighbours?Read More

What are the functions of the property administrator?

According to article 20 of the Horizontal Property Law, the following functions correspond to the Property Manager:

● Attend the maintenance and upkeep of buildings. Also suggesting repairs that are a priority.
● To ensure the smooth running of the community, its installations and services.
Acting as secretary of the Board and keeping custody of the community’s documentation.
● To implement the agreements adopted regarding works and carry out the necessary payments and collections.
● Drawing up and submitting the plan of foreseeable expenses to the Board, proposing the means necessary to meet them.
● All other functions assigned to it by the Board.

When the administration of a community presents a certain complexity, it is advisable that it be carried out by a professional with sufficient and legally recognised qualifications to perform these functions. The aim is to ensure the best and most efficient community management, always answering to the Board of Owners.

When we are dealing with small Communities of Owners, its management can be carried out by any member of the community with some dedication. On the other hand, in the case of large communities, mancomunidades or urban complexes, it will be the administrator who will be responsible for the most burdensome tasks and will provide the president and the Board of Owners with the appropriate guidance when necessary, making it considerably easier for them to carry out their duties.

The fact of the matter is that there are often doubts about what the functions of the administrator are, which can lead to misunderstandings or to assume responsibilities that do not correspond to the administrator.

We cannot ignore the law, even if we do not like it.

For his own responsibility and to protect the community, the administrator is obliged to always act within the limits determined by law. That is why in Meridional we are aware that sometimes these laws are difficult to understand, because they can slow down many agreements or necessary and urgent actions in the communities.

These situations are also sometimes frustrating for Meridional, but it is our legal and moral obligation to abide by them without preventing us from always trying to find the best way to do what is best for the community, looking for legal solutions where sometimes it seems that there are none.

It is quite possible that sometimes other people will whisper in your ear that certain laws can be broken without consequences, which is totally untrue; they are just telling you what you want to hear, because ultimately they will not be the one held responsible and it will not be them harmed criminally or financially.

What are the duties of the Administrator as Secretary?

In addition to being the administrator, he/she is also the Secretary. In this role as Secretary, the following functions will be carried out:

● Signing the minutes of the Meetings
● Keeping the Minutes books of the General Meeting.
● To issue certificates of the statement of debts owed to the Community and of the agreements of the Meetings.

In addition to the functions that the Horizontal Property Law requires us to perform, we can also perform other duties:

Counsel and Advise the Community on real estate and legal matters:

● The constitution and validation of the agreements of the Board.
● Statutes and Internal Regime Regulations
● Procedures for claiming debts
● Employment regulations, protection of personal data, tax, labour and contract matters
● Technical advice on architectural and infrastructure aspects that may affect the proper functioning of the services and maintenance of the community.
● Informing and processing applications for aid or subsidies to which the community may be entitled.

Personnel control:

● We handle labour relations with the community’s employees.
● We look for the most favourable contracts for the community but within the law.
● We take care of the payments to the Social Security and Tax Authorities.

Accounting: Keeping proper accounts, advising on late payments, etc.

The relationship between president and administrator

The administrator must always collaborate with the president, but it must be clear that the administrator is not at the service of the president, nor must instructions be carried in a way that is contrary to what is established by the owners’ meeting, what is established by the Horizontal Property Law, the community statutes or the legal system.

The administrator must be a tandem with the president, but there must not be any hierarchical relationship between the two, rather absolute collaboration for the benefit of the community.

What are the functions of the property administrator?Read More

President of the community: the executive voice

If you have ever considered becoming president of a community, you should know that the president plays a particularly important role in its management. As you know, this position is voluntary, the election is by vote of the owners and for a full year.

From the moment you are appointed president of the community, you will have to try to improve the situation of the property, make changes for the common good of all the neighbours and rectify any incidents that occur during this period.

Being president has responsibilities

It is a commitment that you are making to ensure that everything goes as smoothly as possible in the administration of your community. This means making decisions, and like all decisions, 100% of the owners may not agree. The rule is to do what benefits the most owners and the most people.

You can also take the initiative and call a meeting if you need more support to make a decision. Another thing that can happen is that the initiative you are proposing can only be dealt with at a meeting because it is outside your scope of action as president or the law requires it. Check with the administrator what things you can do and for which you will need the support of the board.

Obviously you may have doubts about certain actions you want to take. In that case, the administrator is there in his or her role of legal advice and counsel; or you can go directly to a General Meeting to have the measure approved and feel fully supported, but even so, the administrator must give legal cover to the agreements.

If you want to be president, you will have to be the person who is conciliatory.

Sooner or later you will have to deal with a conflict between neighbours. When this happens, you will need all your intelligence to resolve the conflict amicably and get all parties to abide by the final agreement.

Mediation is complicated, but it is a task that a president will encounter many times during his or her term of office. If the neighbours are understanding and willing to solve the problem, it is possible that dialogue and your mediation as president will be enough to reach an agreement.

However, it is often not so easy to resolve conflicts. If your attempt to mediate an agreement fails, the support of the administrator can be of vital importance. He will be the one who, with the law in hand, will establish the strategy to follow to solve the conflict and will try to mediate between the neighbours in conflict and advise the community accordingly.

Knowing how to communicate is important

Knowing how to convey and communicate your proposals or what is happening in the community is an added role that you have as president. To do this, always try to express ideas clearly, openly, and in a timely manner, without affecting or damaging the sensitivities of others, or your own.

Communication within the community should be expressed freely, without pressure and in a dignified manner, taking into account the feelings of others and seeking empathy, and the chairperson should be the one to ensure that this is the case.

President of the community: the executive voiceRead More

5 Steps to renting your holiday home in Andalucía

Holiday rentals are becoming increasingly popular, especially during the COVID-19 pandemic, as they offer more privacy, a sense of security and more favourable regulations compared to hotels.

As a result, these holiday rentals will be more likely to recover quickly from the negative effects created by the pandemic. Perhaps you have already found the perfect property to rent, but you don’t know what steps to take because there are so many things to take care of.

This can seem overwhelming and daunting, which is why we at Meridional have put together a 5-step guide to successfully start renting out your holiday home.

1. Register your holiday home to obtain a tourist licence.

To start running a holiday rental business in Andalucía, you must first meet some legal requirements.

A holiday let is defined as a property that is rented out to third parties for a fee and, to fall into this category, the property must be rented for a maximum period of 31 days, two or more times a year.

The requirements for renting out your property are regulated at regional level (Legislación Autonómica). Each region has different legislation, so it is important that you check with the local authorities about the legal requirements of the place where your property is located.

Although there are some local specificities, in general, the process for registering a holiday rental is similar throughout the country. The first and most important step is to obtain a tourist licence.

Below, we leave you the Decree 28/2016, from the Junta de Andalucía. In this you can find all the necessary and detailed information about tourist accommodation.

What is a tourist licence?

It is a legal requirement that allows your property to become a tourist or holiday property. This licence has been required since January 2016 for holiday rentals on the websites advertising these properties, and your advert may be deleted if you don’t have one.

How to obtain a tourist licence

The steps are as follows:

1.- The holiday rental owner declares to the local authorities that he wants to rent out his property by submitting a DRIAT (Declaración Responsable de Inicio de Actividad Turística). Once they have submitted their declaration, they will receive a temporary registration number and can start renting out their property.

2.- When submitting this declaration, rental owners will generally be required to submit the following:

– Identification details of the property and the owner

– Proof of possession of a cédula de habitabilidad (certificate of occupancy).

– Compliance with the requirements set out in the applicable regulations.
In most regions, this declaration can be submitted online.

The authorities will check the documentation submitted by the owner. If the holiday rental complies with all the requirements, it will receive its permanent registration number (which will be the licence number) after about 3-4 months. The property will also be registered in the regional register. If the holiday rental does not meet the necessary requirements, the owner will have to stop renting out the property until the requirements are met.

It is important to mention that the municipal regulations of the area in which the property is located may limit or condition the use of the property. In this case, you can read the decree of the Junta de Andalucía included above and check its limitations.

2. Requisitos mínimos para un alquiler vacacional

Una vez solicitada la licencia, deberás de asegurar que tu casa vacacional cumple una serie de requisitos para poder ser alquilada.

Seguro de responsabilidad civil

Por muy precavidos que sean tus huéspedes mientras se alojan en tu casa, puede ocurrir algún accidente y este puede llegar a ser bastante caro.
El seguro de responsabilidad civil te asegura contra las reclamaciones de terceros por daños personales o materiales en tu propiedad.

Libro de reclamaciones e información

En España, todos los negocios deben tener un «libro de reclamaciones» oficial a la vista (al menos en español e inglés). También se recomienda exponer las normas de la casa, así como los periodos de descanso locales si tu propiedad se encuentra dentro de una comunidad de vecinos. Por otro lado, en caso de experiencias negativas, los huéspedes también pueden dejar sus comentarios.

Identifique 2. Minimum requirements for a holiday rental
Once you have applied for a licence, you must ensure that your holiday home meets a number of requirements in order to be rented out.

Liability insurance
No matter how careful your guests are while staying in your holiday home, accidents can happen and they can be very expensive.

Liability insurance insures you against third party claims for personal injury or damage to your property.

Claims book and information
In Spain, all businesses must have an official ‘complaints book’ on display (at least in Spanish and English). It is also recommended to post the house rules, as well as local rest periods if your property is located within a community of neighbours. On the other hand, in case of negative experiences, guests can also leave their comments.

Identify travellers and register them with the police

As the owner of a holiday rental, you must identify all travellers over the age of 16 by filling in the form «Traveller Entry Form». You will also need to create a Travellers’ Log Book and register all guests with the National Police (usually in larger towns and cities) or the Guardia Civil (usually in villages and rural areas) within 24 hours of their arrival.

All travellers aged 16 and over must sign the Travellers’ Register. Failure to do so may result in fines.

Features required to rent your holiday home

Your holiday rental must also meet specific requirements in terms of its interior layout and amenities. These are:
– Direct ventilation to the outside.
– The possibility of preventing light from entering from the outside, blinds, curtains or similar.
– Security devices on doors to protect privacy.
– Fire extinguisher and fire blanket fully accessible. The number of fire extinguishers and fire blankets should be commensurate with the number of rooms.
– First aid kit according to EU standard (with CE marking).
– Visible emergency number information (112).
– At least one bathroom for every three rooms, with a lock to protect privacy.
– Written information for guests on the rules and use of the house (e.g. for swimming pools, lifts, public areas, quiet hours, working hours of reception, waste disposal, services provided, etc.) and on the operation of electrical appliances.
– As requirements may vary from region to region, be sure to check the specifications of your municipality.

Declare the income from your holiday rental

As a holiday rental owner anywhere in Spain, you are liable to declare your income and pay tax on it.

This applies to all holiday rental owners, even if you only rent out part or an annexe of your holiday property.

The tax year runs from 1 January to 31 December.

You must file your tax returns by 30 June of the current year. On the other hand, if your property has been unoccupied for some time in the last year, you are still obliged to file your tax returns.

If you are not sure how to file your tax return, you should go to your local tax office for more information or visit the Tax Office website.

3. Adapt your property to a target group

Now that you have registered your property as a holiday rental and have fulfilled all the requirements for setting up a successful holiday rental business, you will need to think about your future guests. Depending on the type of property you have and its location, there may be different types of guests for whom your rental is suitable.

Define your target group

Why is it important to have a target audience? Travellers look for properties with specific details such as the property’s location, price, amenities and more. Knowing your target group will help you increase bookings and avoid cancellations.

A smaller flat may be perfect for solo travellers or honeymooners, but may not be suitable for large families.

The location of your property also plays a crucial role. A large property in a rural area might be ideal for groups of friends or for hosting events. At the same time, a flat in the city may seem suitable for millennials.

Equip your holiday home with great amenities

One way to attract guests is to have great amenities. Fast Wi-Fi and a desk facility can get more bookings from telecommuting guests, while eco-conscious guests will no doubt appreciate the waste separation.

Outdoor amenities such as terraces, a nice dining area or a swimming pool will be popular with most guests looking for a relaxing holiday.

Even if you don’t have an outdoor space, you can make your property more attractive by having a well-equipped kitchen or comfortable, open spaces. In addition, security also plays an important role, as families travelling with children will appreciate any protection the house has for them.

4. Descriptive text and photos

Before including your rental on one or more websites, you will need informative text and convincing photos. The most beautiful property will not get many bookings if the advert shows boring, confusing or overly long text; nor will bland convince guests to book.

What to emphasise?

Your ad should focus on the things that make your property unique and perfect for your target group. Do you have good sea views? Are you within walking distance of the nearest beach? Or is the outdoor area ideal for unwinding, enjoying the sun and relaxing by the pool? Think about what your main selling points are and highlight them in both text and photos.

Professional text

You may feel inspired to write great copy for your holiday rental, mentioning all the strengths and why it is the perfect accommodation, however, it may be a better idea to have a professional content writer create this copy.

Professional content writers can be of great help in attracting the customers you want. It is essential to know exactly what information travellers are looking for and what services and places nearby should be mentioned. A very long and rather descriptive text can be overwhelming and may not have the desired effect.

A concise text that provides all the necessary information and leaves out redundant points is indispensable for success.

Professional potos

Just like a professional content writer, a professional photographer will know exactly how to stage your property and show it at its best.

Weather, time of day, incidence of light and perfect angles can make all the difference in photos. Also, a smartphone can not compete with a state-of-the-art camera.

First impressions are crucial, and professional photos are likely to capture the attention of travellers and make them even more curious about your property. In fact, professional photos have been shown to generate 5 times more bookings than unprofessional photos.

5. Publish your holiday rental

As a last step before receiving the first bookings, you need to publish your rental on websites so that everyone looking for accommodation in your area can find it. However, knowing where to place the advert and keeping track of the different websites can be a challenge, not to mention managing multiple calendars and finding the perfect pricing model. In the long run, this can lead to overlapping bookings, cancellations and personal stress.

The advantages of a channel manager

Advertising your holiday rental on the big portals such as Airbnb or Booking (the most popular in Andalucía) or also with local agencies can help to increase your bookings and revenue. On the other hand, this can cause multiple problems with double bookings, different pricing models and difficulty with calendar management.

Using a channel manager, such as Bookiply, is an all-in-one solution to save us from these kinds of challenges. Your rental will be displayed on multiple channels while all calendars are synchronised.

This means that nights that have already been booked through a certain channel will also be blocked on other portals.

In addition, Bookiply provides you with professional multilingual text and professional photos for your ad as well as an account manager, who will be your contact person for all matters.

Prices

Prices vary due to many reasons, such as property type, location and amenities. Although you can determine an average nightly rate based on these criteria, having the same rate throughout the year is not a very reasonable option due to seasonality, demand and length of stay.

Discounts can also be applied to attract guests who wish to stay longer in your rental. Although the nightly rate may be lower, you will earn more income by having your calendar full for a longer period of time. In addition, you can add additional rates when you receive more than a certain number of guests.

A good pricing model is vital for a successful business.
With all these steps completed, you are now ready to start your holiday rental business.

We hope you feel inspired and ready to get started on this journey. When your first guests arrive and enjoy an unforgettable holiday in your home, you will know that it has all been worth it.

5 Steps to renting your holiday home in AndalucíaRead More

How does Brexit affect English property owners in Spain?

As we already know, on 1 January 2021, the UK officially left the EU. This exit implies a series of legal changes that you need to be aware of if you own a property in Spain after Brexit.
However, the process of buying property as well as the rights of property owners remain unchanged. Property rights are never linked to residency status.
All property owners in Spain after Brexit have the same rights and obligations. This is independent of where they come from.

What are the tax changes you need to be aware of if you own a property in Spain after Brexit?
Although from a real estate point of view there are no changes in taxes for non-EU residents, there have been changes that affect English property owners in Spain after Brexit, in relation to the income tax rate for non-EU residents who have a rental property.
Being a resident of a non-EU country, the tax rate went from 19% on the net yield to be taxed to 24% on the full amount of the rent in their income tax return. This happened after the previous tax rate of 19% expired. It all happened when the transition period ended on 31 December 2020.
In other words, the tax rate is increased from 19% to 24% and, in addition, the deduction of expenses such as IBI, repairs, community fees, interest, etc. is not allowed.
This is because Spain, along with other EU countries, distinguishes between nations belonging to the European Economic Area and nations not belonging to it.
To better understand this point we will take a simplified example.
Income of €1,000 per week was generated for six months during the holiday season, that is a gross income of €24,000 per year.
If you had incurred expenses of €14,000, and without taking into account allowances, you would have paid a tax bill of €1,900 before Brexit.
Therefore, if you own a property in Spain after Brexit that increases to €5,760, in other words, three times as much.

How long can you stay in your Spanish property?

This is one of the changes that Brexit has brought about for property owners in Spain. From 1 January 2021, the rules regarding the length of your stay in Spain have changed. You can no longer more than 90 days in a row in a 180-day period.

Therefore, you can spend up to 90 days in Spain and then you must leave the country. You will then not be able to return to the Schengen area until 180 days have passed since your date of entry into Spain. This also applies to any other place in the Schengen area.

Note that the 90 days start as soon as you arrive in a Schengen area location. This means that if you travel to Spain via France, for example, the time you spend in France counts towards the 90-day count.

If you want to stay longer, you simply cannot stay longer. However, you can divide the 90-day period into smaller parts. An example would be spending two periods of 45 days each in Spain.

The government may introduce new legislation to favour British homeowners. An example would be to allow them to spend more time in the country. However, at the moment, the government has not announced any new rules.

What happens if you are an official resident and homeowner in Spain after Brexit?

If you have a Spanish residence permit (known as a foreigner’s identity card/TIE), your situation is governed by the exit agreement between the UK and the EU. This means that your rights in Spain and in the rest of the EU do not change after Brexit.

The Spanish residence permit is an identity card currently issued to non-EU residents in Spain. The card includes residents in the UK.

However, it should be noted that the card issued to British nationals is slightly different from the one issued to other third country nationals.

Therefore, British nationals have an easier path to residence than residents of other non-EU countries.

British nationals who were holders of a residence permit before 1 January 2021 will retain their rights of residence, work, study and social security, provided they were resident in Spain before that date.

Residence visa for investment or Golden Visa.

This is a residence visa that is issued to a non-EU citizen who has the intention of making a significant investment in the Spanish economy. The visa offers the holder and his/her family members residence in Spain and visa-free access to the Schengen area.
In most cases, the Spanish Golden Visa is issued to someone who purchases real estate.

However, they are also available to entrepreneurs who invest in a Spanish company, so they are also called Spanish Investor Visas.

Who can obtain a Golden Visa for Spain?

In order to obtain a Golden Visa for Spain, you must make one of the following investments:

– Acquire real estate in Spain for a minimum value of 500,000 euros. The property can be a single unit or several units, with an overall value of not less than 500,000 euros.

– Make an investment in Spanish public debt of at least EUR 2,000,000.
– Buy shares in a company or make a deposit in a Spanish bank of at least 1,000,000 euros.
– Invest in a new business that offers employment opportunities, contributes to scientific and/or technological innovation and has a relevant socio-economic impact in the area where the business will be developed.

Entrepreneurship visa

The entrepreneurial visa allows you to reside in Spain for a maximum period of two years, provided that you start up an innovative project that is of interest to the country’s economy.
In this sense, we are referring to a visa for non-residents who intend to start a business venture in EU territory (in our case in Spain) that benefits the general interest.

What do we mean by general interest?

Business projects need to fulfil a series of conditions in order to obtain this type of visa:

– Create employment at least in the long term.
– It must create good investment opportunities.
– High technological level
– Have patents.

Non-profit temporary residence

This is perhaps the easiest to obtain and the most attractive, especially among retired British people.

A visa for temporary non-profit residence is effectively issued to people who can demonstrate that they have sufficient funds to support themselves in Spain, without working or studying.
Instead, you have to show that, either through savings or monthly income from pensions or investments, you can support yourself independently while living in Spain

This means that you should be able to demonstrate an annual income of approximately €27,115 (£23,436) as an individual and €33,894 (£29,300) as a couple to qualify for this type of visa.

Am I entitled to free healthcare if I am a permanent resident?

British citizens who are pensioners and entitled to UK NHS healthcare can transfer their entitlement to free healthcare to Spain using the S1 form.

This procedure involves presenting your S1 form at the INSS (Instituto Nacional de la Seguridad Social) office in Spain. Prior to this, it is necessary to have applied for a non-profit residence visa at the Spanish Consulate General in London.

British citizens who have lost the right to health coverage in their country of origin and, therefore, cannot apply for S1, can access health care through private health insurance.

They can also access public health insurance in Andalusia through the special agreement.

If I am a non-resident in Spain, what happens to my healthcare?

Health care can be received due to the social security coordination protocol of the commercial agreement and the royal decree law 38/2020, so that non-residents can receive emergency medical treatment during their temporary stay.

All they need is a free UK Global Health Insurance Card (GHIC) or a current European Health Insurance Card (EHIC).

The EHIC is valid until 30 June 2021 or until it expires, if the date is later than 30 June 2021.

By now, you know a bit more about how Brexit affects English property owners.
There have been some of the changes to your rights and obligations that you need to be aware of if you own a property in Spain after Brexit.
If you have any further questions do not hesitate to contact us, at Meridional we will be happy to inform you.

<strong>How does Brexit affect English property owners in Spain?</strong>Read More

Spain will require travelers from UK to show PCR test or be fully vaccinated

The new rules, which will go into effect on Friday, come amid growing concern over the delta variant, and a large coronavirus outbreak linked to student vacations in Mallorca

Starting on Friday, Spain will demand a negative PCR test or proof of full vaccination from UK travelers, due to concerns over the delta variant of the coronavirus.

Speaking in an interview on Monday with the Cadena SER radio network, Spanish Prime Minister Pedro Sánchez said: “The cumulative incidence rate in the United Kingdom has been progressing negatively during these last few weeks. It is far above 150 cases [per 100,000 inhabitants] in 14 days, and that is why we have to take an additional precaution with respect to the arrival of British tourists to our country.”

The Socialist (PSOE) leader said the new restrictions would come into effect “in 72 hours so that tour operators and British tourists are able to adapt to the new rules.” In a message on Twitter, Spain’s Foreign Minister Arancha Gónzalez Laya later clarified that the new restrictions would be published in the Official State Gazette (BOE) on Tuesday, and come into force 72 hours after that on Friday.

The conditions will particularly affect travelers to the Balearic Islands, which are going on the UK’s green travel list on June 30. The archipelago is hoping to receive an influx of British visitors due to the eased restrictions. The rest of Spain will remain on the UK’s amber list, which requires quarantining upon return to the UK.

Although Sánchez specifically referred to the Balearic Islands in his statements because of the expected increase in British arrivals, the move affects travel by British nationals to all parts of Spain.

“We are going to apply to British tourists who travel to the Balearic Islands the same restrictions that we place on the rest of Europe: they will need either to be fully vaccinated or have a negative PCR test,” he told the Cadena SER radio network.

The requirements described by Sánchez for British visitors are not exactly the same as those governing travel across the European Union: in the latter space, besides proof of vaccination or a diagnostic test, it is also possible to show a certificate proving recovery from the coronavirus in the previous six months. And antigen tests are also accepted for EU travel.

For British tourists, there are two possibilities: full vaccination with one of the vaccines authorized by the European Medicines Agency or the World Health Organization, with the second dose administered at least 14 days before travel; or a negative PCR test taken within 72 hours before arriving in Spain. This represents a change from Spain’s position, adopted a little over a month ago, when the UK was included on its list of countries whose nationals could freely enter the country.

This puts Spain in an intermediate position between what it had to date (restriction-free access for UK travelers) and what other European countries such as Germany want: a mandatory quarantine for UK passengers entering any EU territory, a restriction that Germany is already applying. Spain is openly rejecting this initiative because it would further damage its deteriorated tourism sector.

The Balearic Islands are the only Spanish region that will move to the UK government’s green list of countries and territories, which are considered safe for travel. As of June 30, travelers from the UK will not have to quarantine for 10 days upon their return, although they will still need to take a Covid-19 test on or before day two (and quarantine if the result is positive). A test is also required before travel.

The Balearics, which include the popular islands of Mallorca, Menorca, Ibiza and Formentera, have traditionally been an important destination for British tourists. In 2019, nearly four million of them spent time in the Mediterranean archipelago, mostly in Mallorca.

The rest of Spain will remain on the UK’s amber list. Passengers arriving from amber list countries must quarantine at home or in the place they are staying for 10 days, and additionally take a Covid-19 test on or before day two and on or after day eight. A test is also required before travel.

The announcement of the new travel rules comes amid growing concern over the delta variant of the coronavirus, which accounts for 90% of cases in the UK, and according to the European Center for Disease Control and Prevention (ECDC), is forecast to account for 90% of all infections in Europe by the end of August.

According to the latest Health Ministry report on variants, the delta strain is responsible for less than 1% of cases in Spain, but experts warn that this data is out of date as it can take up to four weeks to sequence new infections.

The decision also comes as Spain struggles to contain a coronavirus outbreak linked to student vacations in Mallorca in the Balearic Islands. More than 800 cases in nine regions have so far been detected and more than 2,000 people are in quarantine. Last week, the coronavirus incidence rate rose for the first time since April 26. On Friday, the 14-day cumulative number of cases per 100,000 inhabitants stood at 95, up from 92.25 on Tuesday.

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Residents driving with UK licences allowed to carry on using them until 31 October

Post-Brexit rules mean residents need a Spanish permit within six months of arriving but many have not changed yet

Spain allows British residents to drive with their UK licence until 31 October 2021.

The previous limit was 30 June. The UK and Spain are trying to reach a long-term deal that could mean those who still have a UK licence do not need to take a Spanish test to change their licence.

Post-Brexit rules mean residents need a Spanish licence within six months of arrival, but many have not yet changed.

Those who successfully registered with the DGT traffic office before the end of 2020, if they intend to exchange their UK licence once residency is approved, have until December to exchange it without taking a test.

Residents driving with UK licences allowed to carry on using them until 31 OctoberRead More