Why Now Might Not Be a Good Time to Move to Spain

One of the reasons so many Brits have wanted to pack up and live abroad has been the state of the British economy. The other reason has traditionally been because of the weather in such countries as Australia, parts of the US, and places in Europe, mainly Spain. But, since the economic crisis caused by the defaulting on loans of some major US banks, the credit crunch has affected virtually the whole globe, with some feeling the effects more than others.

So, although the weather still provides powerful incentive for some to move, the economic situation isn't now necessarily giving potential expats sufficient grounds to take the gamble.

For those who go to Spain in search of work there could be some big disappointments. Spain's unemployment rate stands at a little over 21%. The leisure and hospitality industries, and building trades, have gone into rapid decline. Property values have crashed. House building projects have either been cancelled or put on hold. Many bars and restaurants are closing down. And these are traditionally the main areas where Brits have been able to find jobs in Spain, even without the need to speak fluent Spanish. But, if the Spanish people themselves can't get work it's even harder for non-Spanish to do so.

Having said that, there are some jobs well suited for expats, such as pool maintenance, meet and greet at the airport, cleaning rental properties. But, they are few and far between, and of course to a large extent, seasonal.

Added to the general malaise is the recently announced government's austerity measures. The austerity package narrowly gained parliament's approval which will see a 15bn euros cut in public spending. Areas affected include lowering of pension benefits, and the scrapping of the "baby cheque" which is estimated to affect around 400,000 families from 2011. New mothers were given a payment of 2,500 euros, apparently in an effort to increase the birth rate in Spain. The public service unions have promised strikes against the new laws.

It's against this backdrop that Brits have to weigh up whether now is the right time to move to Spain. Lack of work, potential civil unrest, public services hit, and despite the euro's falls against the US dollar, the pound still at a poor rate against the euro.

Of course there are some who can profit from the situation in Spain. Those who are self-sufficient and don't need to rely on any income in Spain, for example. If they don't need to get a job then that's one problem they don't need to contend with. And, with property prices so low, now could be an ideal time to buy a home out there. Some properties have come down over 30% or more on asking prices, and there are some real bargains to be had. Some sellers are desperate to sell up and move back to the UK, and are willing to sell at almost any price.

No one can really say whether now is a good time to move to Spain. Much depends on each individual's circumstances. The bottom line for most people will be their financial situation. With property prices in Spain at rock bottom there are good reasons why now could be an opportune time to move, especially for those thinking in the longer term where hopefully property prices will strengthen in time. But, anyone considering moving over to Spain to find work out of necessity should think twice, otherwise they could easily find themselves in a financial mess which could haemorrhage away their savings and turn their dream into a nightmare.

The one piece of good news is that unlike places like Ireland, where the economy is getting into a deeper mess, Spain hasn't let up too much on putting money into some public sector projects. It looks like people there are still spending, so hopefully the recovery will be consumer led.