Brexit concerns are pushing many of the 300,000 British expats officially living in Spain to consider moving back to the UK, which could have a big impact on services such as the NHS.
Figures from Spain’s National Statistics Institute (INE) found that, in the last five years, the number of British residents living in the Iberian country has dropped by 157,100, with observers saying this is picking up pace.
However, the 300,000-figure reportedly only represents those who have officially registered with the Spanish authorities, as many do not in order to avoid falling under the local tax system.
The BBC estimates that as many as 760,000 Britons live in Spain.
This means that there could be far more UK expats set to return home as uncertainty around Brexit continues.
Plummeting pound
Commenting on the figures, James Green, divisional manager of western Europe at deVere Group, said: “As Brexit fears, uncertainty and doubt begin to bite deeper, a growing number of British expats in Spain are reluctantly considering moving back to the UK.”
He continued: “It’s our experience that most of those who are reluctantly considering such as drastic step are flagging up fears about the further devaluation of the pound.
“Of the 300,000 UK nationals officially living in Spain, almost half are over 65. A further drop in the pound – which has received a monumental bloody nose since the Brexit vote – would be a serious issue for those who receive UK pensions or income in pounds, as the cost of living would be considerably more expensive.”
Green also said the risk that existing payments from British companies, including pensions and insurance, could be disrupted. Other issues revolve primarily around healthcare and residency rights.
He advised expats to think carefully before taking the “radical step” of returning to the UK.
“I would suggest that people consider all of the options available to them in the first instance, such as the bona fide solutions which offer tax efficiency, peace of mind and low administration issues.
“In recent months, many expats who were seriously contemplating a move back to the UK have been able to successfully restructure their financial planning to, in fact, capitalise on their expat status to take advantage of the tax privileges and investor protection legislation which exists.”
