Top places in Europe to buy a holiday home

Before Brexit, we could travel, live, holiday or even work anywhere in the EU without special visas or permits.  We could holiday in any EU country for as long as we liked – although in some countries we were required to report our presence after staying for three months. Buying a property wasn’t a problem and the popularity of programs like ‘Place in The Sun’ revealed the high level of interest in holiday home ownership. From 1 January 2021, when the new post-Brexit deal began, everything changed.  Whilst you are still able to buy a holiday home abroad, spending long periods there is not as simple as it was.

Unless you are planning to be a full-time resident in an EU country, you will be subject to the Post-Brexit 90-day rule. This means you are allowed to visit any of the EU countries but only for a maximum of 90 days in every 180 days. 

This is a ‘rolling period’ and once you have reached your maximum 90 days, you cannot travel to any country in the EU for the next 90 days. The Schengen calculator gives you an idea of the number of days you have spent in Europe. You log your entry dates and exit dates. (www.schengenvisainfo.com). 

Your passport will be stamped on entry and exit when you travel to Europe’s Schengen zone and this will be used to monitor compliance with the 90 in 180 day rule.  The first day you enter is counted as Day 1, even if you arrive just a few minutes before midnight.

If you wish to stay longer than 90 days, you will need an appropriate visa.  If you are thinking of retiring to a country like Spain, you may be able to apply for a Golden Visa – also called a Retirement Visa or passive visa. The Golden Visa makes it possible to acquire residency, immigration and citizenship through investment. You need to invest money in a property and show you have income from rental properties, dividends or other sources such as pensions, annuities or investments. Different countries have different requirements and you must check these out if you’re planning to buy a holiday home. (See www.wherecanilive.com and www.goldenvisa.com for more info, and the latest figures.)

• Spain Golden Visa – minimum capital outlay - £500,000. Minimum visits –one visit a year.  Benefit residency in the Schengen area.  Takes 2 months to process.
• Portugal Golden Visa – minimum capital outlay - £255,802. Minimum visits – 7 days in the first year and 14 days a year thereafter.  Benefits are residency in the Schengen area and citizenship after five years.  Takes 5 months to process.

Please note that some of these will attract fees for arranging the visa, legal advice and other costs.

• Portugal: The Portugal D7 visa is perhaps the best known and most affordable.  Rather than the Golden Visa which requires a minimum investment of at least 280,000 euros, the D7 requires you to have an address in Portugal, savings and a stable recurring income.  (see d7visa.com)
• Spain:  The Spanish Non-Lucrative Visa is similar to the D7 in Portugal.  You can apply for the Non-Lucrative Visa if you can prove you have sufficient economic means to support yourself whilst living in Spain.  You don’t have to buy a property to qualify but you will be required to have a fixed address.  You’ll need to have a clean criminal record and to obtain comprehensive Spanish health insurance ,  You are not allowed to apply if you’ve previously been banned from entry into the Schengen area and are not allowed to be in Spain illegally at the time of application.
• Greece: The Greek Financially Independent Person Visa (FIP) Visa is ideal if you are looking to spend 6 months or more per year in Greece.  You’ll need a passive income source such as rental income, fixed rate interest earnings and pension payments above 2,000 euros for a single applicant.
• Italy: The Italian Elective Residence Visa is for people who want to live in Italy full-time and have the financial means to support themselves without working so you probably won’t want to apply if you are only looking for a holiday home.  Once you have this, you need to apply for a residence permit immediately which requires you to have a passive income of 31,000 euros a year if applying alone and 38,000 euros if a married couple.  (visaguide.world).

• Always seek the advice of a financial and legal specialists who deal with buying abroad
• Capital gains tax, if you sell your property outside the UK
• Inheritance tax regulations
• Local laws on buying and renting out property
• Utilities are connected and usable
• Any issues in the local area – winter floods, summer droughts
• Take a look at gov.uk/guidance/guidance-for-buying-property-abroad