I know sometimes there is nothing better than to delve into the delightful world of taxation but is this not deviating somewhat from the original question!

My answer to your original question is no. Others seem to have the same opinion.

Residency demands ‘are too strict’

New requirements for Britons wanting to move to Spain – or stay for extended periods – are so restrictive that the British expat population could decline or even disappear within 10 to 20 years.
This was the message from Costa Blanca town councillors this week, who said Britons may choose to retire to less demanding countries such as Portugal.
Full report in Friday’s Costa Blanca News – available from supermarkets, tobacconists/newspaper shops and online at www.costa-news.com

The requirements for Brits is the same for all 3rd country citizens. And it actually worse for Spanish wanting to live in UK. If Brits want to live in Portugal then fine. What's the problem?

I think the point you are missing is the main reason for so many retirees retiring to the sun be it Spain or elsewhere in the EU was down to UK being an EU member and rights to freedom of movement. That made it simple to retire in the sun with basically most of the benefits that the UK provides for its pensioners free healthcare full pension rights etc and cheaper housing and living costs. Spain didn't actively set out to fill the costas with retired British pensioners, property developers did and yes the tourism industry tried to capitalise as best it could on that situation. UK was also tied by the same EU freedom of movement rights and decided against it in 2016. My view is Spain and other countries may try and entice certain UK nationals certainly straightforward tourism and yes it may wish to encourage certain people including retirees to settle in Spain but I would guess they would want that to be certainly those that can fully provide for themselves or preferably more wealthy people who will spend more and pay more tax. To that end they may where EU rules allow incentives that encourage specific groups to retire or live in Spain. Generally though Spain has to treat 3rd country Nationals the same and in accordance with EU regulations.

Spot on and no problem as far as I'm concerned, the Spanish residency requirements for third country nationals sound very fair and reasonable to me. The UK voted to be a third country and the British people knew precisely what that entailed and how it would restrict their lives, no?

This is an interesting article by Giles Tremlett who is based in Spain. This is how the UK treats EU nationals:

https://www.theguardian.com/commenti...in-eu-citizens

People who complain about the new requirements for Spanish residency that UK nationals face display their ignorance. Brexit meant the end of free movement for Brits in the EU. We debated it and voted on it. That was nearly 5 years ago. If you are only just waking up to the consequences then you are showing a wilful neglect of the information that all voting adults should have known.