In November 2003, my mum & dad moved to Spain.
They sold up completely, severing ALL ties with the UK. This is all about what they went through and what, as a result, i found out.
Because i had been involved with property in Spain for a number of years at the point when they decided to go, i was able to offer help with absolutely everything. The only thing i did`nt take into account or know much about at the time, were the concerns of a couple in there 60`s leaving everybody they cared for and their concerns about leaving where they were born for a foreign country - for the rest of their lives!
If you are in this situation or thinking about it, here is a list of the things you may be concerned about -
Health system - hospitals, ongoing medical care, reciprocal agreement
Language - can`t speak Spanish, how do i learn, do i have to speak Spanish
Pension - do i still get my pension, how is it paid, how much do i get
Affordability - can i afford to live in Spain, food, eating out, running a car, household bills
Owning a car - car tax, MOT, insurance etc
Lifestyle - culture, social life, life without my family & friends, new routines, well being
Banks - what do i do with my money, how do i open an account, can i have Euro & Sterling accounts
Legal - do i have to be a resident,
If i have missed anything, please don`t hesitate to comment on this article because -
1. I am sure i can help answer your questions or at least point you in the right direction.
2. Someone else reading this could well have the same question or problem as you.
Health system
Unfortunately, my mum & dad have both had the opportunity (i don`t think they would describe it as `opportune!) to `test out` the medical system in Spain as have a few of their friends.
I am about to make it sound as if their friends are all medical wrecks, but it just so happens that some of them have had quite serious ailments.
Lower back operation - prolapsed disc, paid privately, travelled to Malaga, remained at the hospital for one week, returned home on crutches, now fully recovered & very satisfied with the results.
Various joint replacements - knees, hips you name it, they have had them replaced. My dad has problems with his lower back and left knee. He manages ok with his back - puts it down to the climate, Mediterranean diet and playing golf (and the odd glass of red wine or three). He has just had an arthroscopy on his left knee, had the meniscus removed under epidural. From investigation/diagnosis to operation was approx 4 months, then in & out in the day with follow up calls from the hospital and subsequent after care. Now on crutches as we speak and very happy with the treatment - the job was that tidy that the nurse said she could hardly tell he had been operated on. From start to finish the level of specialist/doctor involvement has been very high.
Skin infection - my daughter, who at the time was 7, suffers a little form time to time with eczema in the crease of her arms. During a summer break in Spain, after too much itching, she contracted a very aggressive looking infection which over 2 or 3 days began to worry us. We took her to the local hospital with the E111 card. We soon discovered that children & elderly are given priority and, provided there are no emergencies, they are dealt with first - and this among other patients is accepted. Within 5 mins she was in a private room with 3 doctors, diagnosed, given the necessary medication and released. After 3 days her skin was better.
General - Because many areas of Spain are benefiting from ongoing development & EU funding, many of the hospitals are new and extremely well equipped. Overall, the system seems to be prioritised correctly and much more efficient than the UK.
Spain & the UK have a reciprocal medical agreement. All you need to do is apply for a European Health Insurance Card (formerly E111) and take this to the hospital if you require medical attention.
As a pensioner you dont have to be a resident of Spain in order to be entitled to free health care, but you do have to own a property. Pensioners living in Spain even though receiving UK pensions, are entitled to free health care under the European Union reciprocal healthcare policy but need to be registered to obtain this. It will give them free prescriptions and access to both urgent and non urgent health care. Application must be made at the local INSALUD office to which you need to take the original and a copy of your passport and something that shows the address where you are living. You will then be issued with a provisional social security number
Proposed changes to the law for pensioners
It is becoming increasingly common for British State pensioners to divide their time between the UK and some other EU country.
Under European law, the health care costs of such an individual remain the responsibility of the member state paying the pension (unless the pensioner receives a pension from both countries in which case the country of residence is responsible). In many EU countries, the pensioner may choose to register as resident in that member state, in which case they can receive treatment in that country and the UK government pays an agreed sum annually to the member state to fulfil its obligation to fund that treatment. While they are in the UK, they are entitled only to treatment that arose during their stay. Registration as resident is not compulsory, and indeed in some EU countries is not an option.
However, many pensioners who could register as resident choose not to do so, because they do not consider themselves as resident in the other member state, but as UK residents merely on an extended visit to the other member state. Consequently, they have to pay for any treatment they receive abroad and many choose instead to return to the UK for regular treatment. The problem here is that these unregistered pensioners often fall foul of the charging rules because of the way the twelve-month residency exemption is calculated. The Regulations stipulate that only absences of up to three months can be disregarded when calculating whether someone has been living in the UK for more than twelve months prior to the treatment commencing. As a result pensioners who have been living in another EU member state for more than three months find that they return ‘home’ for treatment only to be told that they have to pay because they are not ordinarily resident and do not meet any of the exemption criteria. This is clearly unfair when, under EU rules, the UK should be funding treatment. In the light of this the British government is proposing to introduce a new regulation that provides specific exemption from charges for NHS hospital treatment to anyone who:
1. is in receipt of a specified British state pension; and,
2. is living in the UK for not less than six months and in another EU member state for not more than six months per year; and,
3. is not registered as resident in another EU member state
As a non pensioner, providing that in Britain you have been paying class one or class two stamps in the current tax year [to April] then you will be entitled to two years health cover the same as Spanish Nationals. Even if one spouse meets the required criteria and the other does not, both people can be included in the benefits providing they are dependent on the other. In relation to the Form 106 you need to contact DSSNewcastle and they will send you the relevant form to your home address in the UK. You fill the form out and tell them where your address is going to be in Spain.
They will then send you the relevant Form E106 back out to Spain and then you present it to your nearest Instituto Nacional de Salud) INSALUD office, which is similar to our DSS offices.
Once stamped by them you retain the form in case of illness and it is valid for two years. If you are not of pensionable age i.e. under 60/65yrs, after the two years you will need private
insurance or will join the Spanish health system via your work contributions.
Language
Again, what i am about to say is based on the experiences of my parents, there friends & the peolple i have met in Spain.
Generally, it would be fair to say that learning a little Spanish is part of the fun and exitement of starting a new life in foreign country. It is a fact that most of the Spanish you will come accross will speak at least some English, some speak as good as you or i. So in this sense it is easy to `not bother` and carry on with the little `SPANGLISH` that seems to be widely adopted by us Brits. ( i have a Welsh pal in Almeria and his Spanglish is the best i have ever herd - all he does when he cannot make himself understood is speak much louder with a Spanish accent - funny thing is, they then seem to understand ?!)
As a result of my life in Spain i have created many good Spanish friends from varied backgrounds - from waiters to bank managers. The one thing i can tell you for sure is that if you try ie take some lessons, read books, listen to CD`s, try your Spanish out etc then the Spanish people will appreciate you more and help you to learn the language first hand.
I, and my parents, have found that the best way is to do a little of everything - books, CD`s, lessons, TV, newspapers/magazines (Spanish ones of course) and for me the most successful, productive & enjoyable bit is the amazing cafe culture - just sit, watch, listen and TAKE PART - your very own `flexitime` classroom! If you need some ideas re books, CD`s etc, leave a comment and i will point you in the right direction.
Pensions
My parents are of pensionable age, and found the whole transition process from UK to Spain quite straight forward. I remember that they had a delay for the first 2 or 3 payments while the system was set up, since then they have had there payments paid into there Spanish bank account every month without a problem.
If you are retiring abroad, you can continue to receive your UK State pension. If you are moving permanently to Spain, you should get yearly increases in your pension. Contact the Social Security Office to complete the correct forms.
Before you leave the UK work out your retirement income by obtaining and completing a form BR19 from the Retirement Pension Forecasting and Advice Unit (RPFA) on 0044(0) 191 218 7585 and ask for a state pension forecast. This is available up to four months before you reach the UK pension age. The forecast you receive subject to your general entitlement will tell you what your pension is at the date received and whether or not you will get more by the time you reach UK pension age. Note that if you have already moved, and are paying local Spanish social security payments, that this forecast will not include your local contributions. You should write to The UK Pensions Service informing them that you are moving to Spain and give them your new address. Their address is International Pension Centre, Tyne View Park, Newcastle-upon-Tyne NE98 1BA Telephone: +44 (0) 191 218 7777 Note that the state pension age and entitlements may vary between Spain and the UK. To check on your pension rights in Spain we suggest that as a first step you should look at www.ukinspain.com/english/. This is a UK government website dedicated to providing information for those re-locating to Spain from the UK. To obtain your UK State pension in Spain you will need to complete a claim form from the Pensions Service. This is also normally available four months before you reach the UK pensionable age. It asks you if you want to claim a UK retirement pension and for details of any periods of residence and state insurance you have in other countries. If you are living in Spain and claim a pension from that country, the UK Pension Service will pass details of your claim to the Spanish authorities who will process you pension in Spain. Personal and company pension schemes can usually be paid anywhere. The experience of others has shown that some company schemes, for example, will pay a pension only to a UK bank. Further, some annuity companies levy charges for each overseas payment, although others do so for free. You may consider transferring your pension fund abroad. This would eliminate the Euro/Sterling exchange rate risk if your fund were maintained in Euros. Please note that all such international transfers must receive the prior approval of the Inland Revenue and specialist advice should be obtained from a pension’s expert.
Affordability
The simple answer is that generally it costs about a third less to live in Spain compared to the UK.
Here are some examples of costs -
Car
Petrol - 1€ per litre
Insurance for small car (peugeot 206) – 250€
Insurance for big car (Mercedes) – 550€
Car tax – 40 to 84€ depending on size of car
Spanish ITV (MOT) – after 4 years old, 30€ every year
Following based on 3 bed villa :
Home insurance – 250€
Gas – 40 € every 2 months
Water – 50€ every 2 months
Electric – 80€ every 2 months (inc air con & heating)
Telephone – 35€ line rental every 2 months + calls (many cheap tariffs available)
Community fees (similar to council tax) – 250€ every 2 months
Food
Meal out for 2 – ~ 15€ to 50€
Supermarket shop for 2 – 80€
Tapas – glass of wine/beer + tapas ~ 5€ pp
Golf – 100 tickets ~ 2100€ (San Miguel member)
Buses & trains are very inexpensive in Spain and of generally better quality than in the UK. Currently, Spain is undergoing the introduction of a high speed train network which will connect most major cities. There are also plans to create a connection with France making it a real possibility to commute from the UK to Spain on the train!
If i have missed anything out that you would like to know about, please leave a comment and i will respond.
In short my parents, for example, live more than well ie eating out, playing golf, run two cars etc on between 900 to 1200€.
Owning a car in Spain
Lifestyle
Whilst in Spain recently, i had the opportunity to meet some of my parents` social circle, some are retired, some have a holiday home and among them were a couple in there early 30`s who along with there children had swapped the UK for Spain. This is what they had to say about life in Spain.
First, allow me to paint the picture - it was a Thursday morning in February about 11am, shorts & T shirt weather, blue sky - not a cloud in sight. My parents live on the coast in Almeria very close to a beautiful marina surrounded by boutiques, cafes & restaurants. Having sat down in one of the cafes, it was`nt long befor we were talking with, what seemed to be, all of my parents social circle.
One lady said - "i came down to the marina yeterday morning for a newspaper, it took me three hours". By the time she had done chatting with various friends, had a coffee and of course bought the newspaper, the morning had quite liesurly passed by. She went on to explain how much safer she fealt in Spain and that she was comfortable walking about at night time.
Another retired gentleman explained to me that had he have stopped in the UK, he would be doing very little with his life - "a trip to the local supermarket or town during the day followed by a helping of the `soaps` or the pub in the evening". He went on to say that because he had a few health issues and found it niether comfortable nor appealing to be out in the UK, he thinks he would have been unhappy & depressed. "In Spain i do not want to be indoors, to be out in the fresh, warm environment makes me feel like i have more energy. For me, it is good to be away from all the complications, crime, politics and daily grind of the UK. I play golf - in a fashion, sit and watch the sea & i now enjoy a healthy social life".
My parents along with some of their friends explained to me that the hardest thing of all was leaving family behind. "It was the most difficult thing of all leaving my family knowing that i could`nt just call round to see them. It has taken probably the best part of 6 months to get used to the idea, but knowing they are only 2 hrs away by plane helps and the fact that they come out to Spain regularly for holidays gives us something to look forward to and we speak regularly over the phone".
The general concensus of opinion was that none of the people i spoke with would consider moving back to the UK - life just seems to be much better!
Banks
Could you just call in at your local bank in the UK, and go and have a chat - about anything - with your bank manager? If so, you are either very privileged or married to him/her!
In essence, this describes the `easy & uncomplicated` nature & culture of the banking system in Spain - which does not suffer from the countless issues of the British banking system.
Most banks will have English speaking staff and unlike many of the so called `emerging markets` Spain has been dealing with us Brits since the 60`s and are therefore somewhat familiar with our banking requirements.
More and more UK based banks are now cashing in on the action in Spain. These include - Halifax, Bradford & Bingley, Barclays, HSBC and Royal Bank of Scotland. Some of the more popular Spanish banks are - CajaMurcia, CAM, Banco Popular & Caja.
In order to transfer your funds into Spain, for simplicity and value you are generally better off using the services of a foreign currency exchange company such as HIFX. They will give you a more competative exchange rate compared to the banks and will transfer the funds free of charge. I have help organise transfers for many people, leave a comment if you require any help.
The banking system is well established and modern. There are many banks and all banking activity is controlled by the Bank of Spain (Banco de España), which has its central office in Madrid and branches in all provincial capitals. Banks are divided into clearing banks and savings banks, and several foreign banks also operate in Spain. Opening a Spanish bank account is really easy - you will be required to proove who you say you are in the form of a passport for example and thats about it. You can have a Euro account and/or a Sterling account - the choice is yours. All Spanish banks, just like there UK couterparts, offer internet banking facilities.
Legal
You will become resident for tax purposes in Spain if:
You spend more than 183 days in Spain during one calendar year. You become liable whether or not you take out a formal residence permit (Residencia). These days do not have to be consecutive. You do not become resident for tax purposes until the morning of the 184th day. Temporary absences from Spain are ignored for the purpose of the 183-day rule unless it can be proved that the individual is habitually resident in another country for more than 183 days in a calendar year, or
You arrive in Spain with an intention to reside there indefinitely. You will then be tax-resident from the day after you arrive. Obtaining a residence permit is evidence of an intention to stay, and will count against any claim that you are not liable for Spanish tax, or
If your “centre of vital interests” is Spain. This is a relatively new rule and is hardly ever applied, or
Unless proven otherwise, you are presumed to be a Spanish resident if your spouse lives in Spain and you are not legally separated even though you may spend less than 183 days in Spain.
A Spanish tax year is the same as a calendar year (1st January to 31st December), unlike the UK tax year which is from 6th April to the following 5th April.
If you are resident in Spain you will be liable for income, capitals gains and succession duty (inheritance tax) on your worldwide assets. This is in addition to other incidental tax liabilities such as IVA (VAT) and gift taxes. It is worth noting that gift tax and inheritance tax in Spain are payable by the receiver of the gift or inheritance.
If you live on a boat within 12 nautical miles of Spanish land, you are a Spanish tax resident. A day within 12 nautical miles is a day spent in Spain for tax purposes.
Fiscal Identity Numbers
If you reside in Spain, or if you own a property and are non-resident, you need a Numero de Identificacion de Extranjeros (NIE). The number identifies you to the Spanish taxman and is required when you pay your taxes or have any dealings with the Hacienda (Spanish tax office).
To obtain one, present yourself at the nearest police station with a foreigners’ department (comisaria), along with your passport and a photocopy of it. Fill in the form, keep the copy given to you, and wait for the number to be assigned. Check with the comisaria how long the process will take as it varies from a few days to a few weeks, and remember to take your passport and the copy of the form when you go to collect the NIE certificate from the comisaria.
Obtaining this NIE is this first thing you should do if you plan to reside in Spain and is also required if you buy a property (whether resident or non-resident). This system however is currently under review, and may even be abolished.
Final Point
Keep it quiet, but up to now - i have never seen a traffic warden in Spain ;)
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