Useful information for living and working in spain
Miles of golden beaches, dramatic cliffs and bays and, of course, the sparkling clear blue seas. The wonderful healthy clear air that allows glimpses of the distant Balearic Islands from the North Costa Blanca Coast. A place for optimal living, whoever you are, whatever your special reason for seeking your own patch of this privileged corner of Europe, and so easily within your grasp.
Health Care and Social Security in spain
Health care
The lifestyle and climate of Spain place the Spaniards among the world's healthiest people, with life expectancy in Spain being the highest in the European Union.
In particular, the level of heart disease is among the lowest in the world; this is probably due to the diet although the relaxed way of life cannot be ruled out as a potential health benefit! In addition, the warm dry climate is recognised as being beneficial to sufferers of rheumatism and arthritis.
The quality of medical facilities in Spain is very good, as would be expected in a modern western society. Spending on health care in Spain is at the average for the EU with government-funded and private health care providers operating alongside each other to good effect.
Over 90% of Spanish residents are covered by the public health system (INSALUD), including residents retired from an EU member state and in receipt of a state pension as well as for those in employment and contributing to Spanish Social Security, plus their dependants.
It is normal for those who are not either paying Spanish Social security or receiving an EU state pension to have private health insurance and proof of such insurance may be required when applying for a residence permit. Before moving to Spain, you should check with your local social security offices and make sure you have completed the relevant forms for temporary or permanent residence in Spain.
Spain's public health benefits include free or subsidised health care (including general and specialist care, hospital treatment, maternity care, basic dental care) and subsidised medicines.
Social Security
As well as covering health care, the Spanish Social Security system also makes provision for industrial injuries, unemployment, invalidity, death and pensions. The level of contributions is around 30% of gross pay, with 5% paid by the employee and 25% by the employer.
If you are working in Spain, either as an employee or self-employed you will probably have to pay social security, although for two years after moving to Spain you may be able to opt to continue paying in you EU country of origin. After two years working in Spain, you will be required to contribute to the Spanish social security system.
If you are retired and are eligible to receive a state pension in the UK, you will be able to draw that pension while resident in Spain and be entitled to full health benefits on the same basis as Spanish nationals.
However, you should talk to your local UK social security office and make sure you have the relevant forms correctly completed before your departure to Spain.
Further reading:
Social security for migrant workers, and Your social security, health care and pension rights in the European Community, both available from the Department of Social Security, Overseas Branch, Newcastle-upon-Tyne, NE98 1YX, or go to the DSS/Department for work and pensions website by clicking here
Spanish education
Education in Spain is compulsory between the ages of six and sixteen, provided by the state and the private sector. The standard has improved significantly over recent years and state spending has seen an increase in real terms.
In terms of integrating non-Spanish speaking children into Spanish schools, the younger the children the better. If the language barrier is too daunting, or the educational stage of a child is inappropriate for being plunged into a new language, then there are good multi-lingual international schools in many locations throughout Spain.
State Schools
Most Spanish children attend a nursery at the age of 4 or 5, "basic general education" starts at 6 and is taught up to the age of 12. From 12 to 16 children attend secondary education, after which children are awarded either a "school certificate" or a "titulo de graduado" qualifying the child to study for a baccalaureate leading to university entrance. At the age of 16 a vocational school may be attended instead of studying for a baccalaureate.
Enrolment in a Spanish school requires an interview and on occasion an examination. Enrolment is usually during a 2 month period in the early part of the year but precise dates vary from one school to another.
Although an element of choice exists, it is normal to attend the school nearest to the child's home. For enrolment, you must provide a birth certificate, proof of immunisation, proof of residence and 2 passport style photographs.
For direct entry into a secondary school proof of convalidation should also be provided as proof of an education record. This can be obtained from the "Ministry of Education and Science" in Madrid, and as it can take 3-6 months it would be wise to have the application in process before you plan to take up residence in Spain.
Private Schools
Private schools vary considerably in syllabus and style. State subsidised private schools have a minimum of 25% Spanish pupils and may be multi-lingual, with fees typically over 100,000 Ptas per annum. Non-subsidised schools may be from 300,000 to 1,000,000 Ptas per annum.
Private schools generally provide a wider range of subjects and activities than state schools and may even offer British GCSE and A-levels or American high school diploma and university entrance exams.
Further reading:
For general information about foreign language schools contact the British Council in Spain, see "Living and Working in Spain A Survival Guide" by David Hampshire, published by Survival Books.
For information concerning the specific area of your domicile in Spain please contact the Eden Villas office on +44 (0)1382 505101.
Fiscal Identification Number
All resident and non-resident foreigners with financial affairs in Spain (such as ownership of property) must have a "foreigners identification number" (NIE). This is obtained very simply, and guidance will be given when you are at a stage of needing to open a bank account in Spain.
Mortgages
The interest rate in Spain (as part of the European single currency zone) is generally well below that in the UK, making Spanish mortgages relatively good value. Most of our offices in Spain can arrange mortgages for you through associated banks, at very competitive rates. The maximum recommended mortgage is 50% of purchase price of a property, although if necessary it may be possible to obtain more. As is the case in the UK, mortgages are given subject to status.
Taxation
This is a rough overview - not necessarily a comprehensive list. Please consult our further reading list and don't worry - our offices in Spain will be happy to set you off in the right direction, and the appointment of a gestor will have you enjoying the sun free from any thoughts of the taxman!
Value Added Tax
Spanish VAT is charged at 3 different rates, 4% for essential items (including basic foods, some medicines and cars), 7% for other foods, drink, fuel and new properties and 16% for other items. Some goods and services are not liable for VAT, including many financial and educational services. A further 0.5% is payable as stamp duty on property purchases.
Property Tax
This is a local tax levied on property. The rate varies from one location to another and the charge levied is subject to the valuation of the property, and is paid annually. (See the page Organising Finance 2 for property related information)
Income Tax
You are liable for income tax if you are resident in Spain for 183 days in the year. Spain has a rate of income tax below the average for the European Union, although it should not longer be viewed as a "tax haven". If you appoint a "gestor" he/she will be able to advise you on tax liabilities and allowances. Allowances include deductions for social security payments, the standard tax allowance of around £2000 (increased for pensioners and people with disability), as well as allowances for dependants. Income tax is calculated in six bands, the lowest rate is 18% with the highest rate, 48%, payable on annual income over 11,000,000 Ptas.
Capital Gains Tax
When you sell a property, it will be liable for capital gains tax, payable on the increase in value of the property, less allowances.
Wealth Tax
Wealth tax is an annual tax payable on your material assets over 17,300,000 Ptas, less deductions. If assets are jointly owned (e.g. by a husband and wife, or by a group) then each partner should make separate declarations and claim the 17,300,000 allowance.
Community fees
(Comunidad de Propietarios). Many new properties are situated within a Community of Homeowners. The Community takes care of a number of services within a development and the level of service will vary from place to place. Some of the factors that are commonly included are; maintenance of the Community gardens and swimming pools, lighting, security, building insurance, etc. The Community will hold annual meetings during which a budget is approved by the Owners covering the expenses for the year. This budget is then divided between Owners depending on the size of their property. This division is mentioned in the Title Deed (Cuota). The Community fees are normally paid half-yearly depending on the Community. It is important to try and attend these meetings and vote on any matters that may affect the Community, or to make any suggestions.
Local tax
Your local Town Hall makes a charge to each property owner equivalent to Local Rates (Impuesto Sobre Bienes Inmuebles or I.B.I.). The amount of this tax will vary depending on the assessed value (Valor Catastral) and is paid annually. In certain cases, discounts can be obtained for early payment of these charges. Your receipt of payment will reflect the amount you have paid, the year to which the receipt corresponds and the assessed value that year.
Rubbish rates
The Town Hall will also make a charge for the Rubbish Collection (Basura) from your property or development. This can be charged annually or quarterly depending on the Municipality in which you are purchasing the property. In certain cases this may be included in your Community fees.
Recycling rates
In certain Municipalities there is an annual charge for the Recycling Tax (Tratamiento de Residuos). This covers the recycling of waste from the numerous glass, paper, battery banks that are distributed throughout the area. Again in some cases this may be included within the Community fee.
Utilities
Most properties have electricity and water meters and you will be charged according to the amounts of each consumed. Some Communities will only have one meter for the whole development and therefore include the water in the Community Fees.
Others
Above are the main expenses that a property will incur. However, other charges such as telephone, alarm companies, gardeners etc. should also be taken into account. After you have completed the sale it is recommended that you establish standing orders with your bank for the payment of many of these items. This avoids any possibility of non-payment and the related problems of surcharges, reconnection fees etc.
Further Reading
See Deloitte and Touche guide "How to buy your property in Spain", in our opinion the best concise, independent guide currently available, you can download it from Deloitte's website.
"Living and Working in Spain A Survival Guide" by David Hampshire, published by Survival Books is an excellent general text with a very good section on financial matters.
Living in Spain
The south-east coast of Spain is characterised first and foremost by sunshine. Spain is a sunny country; no question. Of course sun affects almost every aspect of life, from style of house, leisure pursuits, food, (and drink), pace of living to name but a few.
Fresh fruit and vegetables, fresh fish and succulent meats are available in profusion. Spain has long been a major provider to the colder countries of early salads and vegetables as well as fruits - melons, oranges, lemons, grapes, tomatoes as most will be aware, but also of the lesser known delicacies like dates, pomegranates, peaches, artichokes, avocados, walnuts, almonds and the rest.
Can you imagine wakening up some sunny morning to the scent of orange and lemon blossoms in your own garden. Wonderful. And you do not have to be one of the world's privileged mega-rich for this to happen for you.
Living outdoors, eating out, sitting out, people-watching over a leisurely glass, or strolling along the palm-shaded promenades, are all part of a normal way of life. What is more, it is an affordable way of life. Many goods and services are priced similarly in Spain and other EU countries (which makes it generally less expensive than Britain), although it is not as cheap to live in Spain as it was 20 years ago.
The quality of life in Spain is probably the reason why you have got as far as making investigations about living in Spain. The cost of living is relatively low, while the warm dry climate not only enhances your lifestyle, it is also good for you (the Costa Blanca is recognised by the WHO as having one of the healthiest climates in the world). Re-locating to Spain is relatively straightforward for EU nationals, but you should be sure to take the advice of the office through which you purchase your new property.
Residency
If you do not plan to stay in Spain for more than half the year (182 days, to be precise), then as an EU national you do not need to obtain a residence card.
If you are not an EU national you may need to obtain a visa from the Spanish consulate in your country of origin.
If you plan to live, study, work or start a business you are required to apply for a residence permit within 15 days of your arrival in Spain.
Cards for dependants are issued for the same period as the principal applicant and applications must be accompanied by proof of relationship (i.e. marriage or birth certificates). The period of issue for a residence card is usually 5 years.
It is important to know that if you choose to live in Spain for more than 182 days in a calendar year then you will be liable to pay Spanish income tax on your worldwide income.
It may well be a good idea to appoint a "gestor", a professional who is trained to help you with official paperwork, to act on your behalf. Although you will have to pay for their services, they are generally reasonable and will almost certainly save you time and trouble.
Wherever you choose to buy property in Spain, Eden Villas offices can help you with finding a reputable gestor.
Further Reading
Contact the Spanish consulate in your country of residence for further information.
Consul General:
D. Jose Ignacio Carbajal Garate
Address: 20 Draycott Place. London SW3 2RZ.
Telephone from Spain: (44-207) 589 89 89
Telephone from the U.K: (0207) 589 89 89
Visas information line: 09065 508 970
(24 hours-calls cost: £1.00 per minute from BT lines)
Fax: 0207 581 78 88
E-mail: conspalon@mail.mae.es
Working in Spain
If you are going to seek employment in Spain, it is worthwhile making some investigations into the job market before you decide where you are going to take up residence. Unemployment in some rural areas is still quite high, while in other parts there is a shortage of labour and good opportunities in the leisure and entertainment industries.
Job Hunting
Without doubt the best plan is to have a firm job offer before you move to Spain.
The internet and Spanish newspapers are a good source of job vacancies, and it would also be wise to look in on employment agencies when you are visiting Spain prior to your move.
If you are buying a new-build property, it often takes from 6 months up to as much as 2 years to complete the purchase, and this time could be well spent looking for a job.
Knowledge of Spanish is not essential for all jobs although it will open up many more opportunities and generally increase your quality of life in Spain. Language courses for foreign residents are available in most large towns in Spain but making a start before you go will greatly enhance your speed of learning and confidence when you arrive.
However, if you are in Spain and looking for a job, then you can improve your prospects by looking in the right places. The Instituo Nacional de Empleo runs government employment offices, there are 700 offices throughout Spain listing permanent and temporary jobs, both local and national.
There are many British-run businesses in the Costa Blanca and Costa del Sol, as well as British social clubs; these may also be a good place to ask for advice or information about the local job market.
Work Permits
There are no restrictions on EU nationals working within the EU, although if you enter Spain without a pre-arranged position you must register with the Spanish national employment office as a job seeker. This registration will allow you to remain in Spain for six months while seeking employment.
For non-EU nationals the procedure is rather more complicated, and you should contact the Spanish Consulate in your country of residence for accurate information. Non-EU nationals will require a visa that will be granted after your work permit is approved, your prospective employer must submit the application for the work permit.
Further Reading
"Living and Working in Spain A Survival Guide" by David Hampshire, published by Survival Books.
The Buying Process for Spanish property
Buying a property in Spain is very similar to purchasing in any other country. The main difficulty is the language barrier, this is easily overcome by utilising the services of professional companies and multilingual Solicitors. Once you have found your ideal property, our Spanish offices will be able to provide you with all of the information and details that your Solicitor will require in order to proceed with the sale.
Step by step
Step 1: Decide on the purpose of your purchase: is it for investment, as a holiday home or for permanent residence, or a combination?
Step 2: Decide on the level of investment that you wish to make in your new property.
Step 3: Decide on a time scale for the purchase of your new home.
Step 4: Discuss the options available to you, according to your criteria, with Eden Villas and decide on your ideal property type and region in Spain (contact us).
Step 5: When you are in a position to purchase your new home, arrange an inspection visit to view property.
Sales tax
The costs of buying a property in Spain are relatively high, mainly due to the 7% sales tax. You should allow around 10% of the price of the property to cover these costs.
Land registry property search (nota simple):
Using the registration details (Inscripcion) from the Deeds (Escritura), your solicitor will arrange for a property search (Nota Simple) from the Land Registry (Registro de la Propiedad). This search will show the full history of the property, together with any mortgage charges, debts or any other encumbrances that may be attached to the property. This document would normally be applied for when you pay the deposit and again prior to completion.
Signing the title deeds (escritura):
When you reach the completion date stipulated on the purchase contract you will be required to pay the balance of the money and sign the Title Deeds in front of the Public Notary. The Notary is an offical witness to the sale and will ensure that each party has sufficent legal authority to buy or sell the property. He will also inform you of the actual situation in respect of any debts, charges or encumbrances. This information is supplied to the Notary directly from the Land Registry. The charge made by the Notary will depend on the length of the Title Deed and the price declared.
Sale taxes:
You are required to pay taxes on the transfer of the ownership. If the property is a re-sale and privately owned, you are required to pay 6% tax. Should you purchase a new property, or property owned by a Spanish company you will pay 7% I.V.A. plus 0.5% duty. For resale property, the payment will be on completion, for new property it may be necessary to pay VAT with the instalments during the build process.
Land registry:
Once your Deeds have been collected from the Notary and the taxes paid, they can be presented to the Land Registry (Registro de la Propiedad) for registration. This process could take up to forty working days depending on the workload of the Registry.
After-sales service:
After purchasing your property in Spain and returning to the UK, you need peace of mind that the construction is proceeding according to plan. Our after sales team undertake to liase with the builders and solicitors; regular inspections are carried out and the progress reported back to you. Our after sales team will help with any customisations and prepare the property for your arrival in Spain when it is ready to be occupied. Our after sales service is provided free of charge.
DISCLAIMER
The information contained in these pages do not constitute a legal contract or legal advice, we cannot guarantee the accuracy of information. No claims against Eden Villas relating to information provided herein will be entertained.