Moving to and Living in Spain
Moving to Spain
The cost of living in Spain compares very favourably with the UK. However, you will be liable for everyday living expenses connected to your home, local government etc. as you would in the UK.
Having purchased your property you will be liable for the following basic expenses:
- Community fees. Charged for the upkeep of the community grounds, communal areas, facilities and security should this be a service on your particular urbanization.
- Rates
- Rubbish collection
- Income
- Wealth Tax. Approximately, 1.5% of the purchase price per year.
- Water
- Electricity (Spanish homes do not have piped gas and if required is purchased in bottles)
- Insurance
How do I arrange to retire in Spain?
Retiring to an EEC country does not necessarily have to be a daunting prospect and the way to avoid any of the common pitfalls is thorough research BEFORE you go. The most important step is to find out the legalities and your financial feasibility of settling in a foreign country (even in Europe).
Useful Addresses for 'Over 50's' Retiring to Spain
Age Concern Information Line
Freepost (SWB 30375),
Ashburton,
Devon TQ13 7ZZ.
Tel: 0800 00 99 66
Fax: 020 8765 7211
Web: www.ageconcern.org.uk
The Association of Retired and Persons Over 50 (ARP/O50)
Greencoat House,
Francis St,
London SW1P 1DZ.
Tel: 020 7828 0500
Fax: 020 7233 7132
E-mail: info@arp.org.uk
Web: www.arp.org.uk
Inland Revenue
International Branch,
Benton Park View,
Newcastle-upon-Tyne NE98 1BA.
Tel: 0845 9154811/ Overseas: 00 44 (0) 191 225 4811/ Fax. 0845 9153232
Overseas:00 44 (0)191 225 3232
Web: www.hmrc.gov.uk
For details of UK Income Tax whilst abroad contact:
Inland Revenue
Centre for Non Residents
St John's House
Merton Rd, Bootle,
Merseyside L69 9BB.
Financial Intermediaries and Claims Office:
Tel: UK 0845 0700040
Abroad +00 44 (0)151 210 2222
National insurance contributions
Inland Revenue,
National Insurance Contributions Office,
International Services,
Longbenton,
Newcastle upon Tyne, NE98 1ZZ.
International Services Helpline:
Tel: UK 084591 54811 / Abroad +00 44 (0)191 225 4811
Fax: UK 084591 50067 / Abroad +00 44 (0)191 225 0067
Email: internationalservices.ir.sbg@ir.gsi.gov.uk
Retirement Pension Forecasting and Advice Unit (RPFA)
Department for Work and Pensions,
Newcastle-upon-Tyne, NE98 1BA.
Tel: +00 44 (0) 191 218 7585
Fax: +00 44 (0) 191 218 7293
Web: www.dwp.gov.uk/lifeevent/penret/
Do I need to apply for residency ?
When moving to another country it is important to make sure that all paper work is in order and that you have researched all aspects of living overseas including financial, social and cultural. Here is a brief checklist of points to consider before becoming a resident (ex-patriot) in another country.
1. Ensure your passport is valid until you next indent to return to the UK.
2. The law in Spain specifies that a person who has been present in Spain for six months must either leave or apply for a residence permit (residencia). However, since 14th February 2003, it is no longer necessary for EEC citizens to apply for 'residencia', unless you open a business, to obtain credit etc. However, this ruling does NOT apply to pensioners. It is necessary for pensioners retiring to Spain to apply for 'residencia'.
3. If you intend to have any financial dealings, apply for an NIE (foreigner's identification and social security number) at the police station. This is will be needed to set up a bank account and also when you start a job.
4. Set up a current account in plenty of time. The bank will issue cards with your account details on, which you can present to your employer and other official bodies.
5. Arrange adequate insurance
6. Are there any tax advantages of 'residencia' over non-residents, especially with regard to your property?