spain

ADDITIONAL COSTS IN PURCHASING YOUR HOME:

You should budget for a maximum of 10% of the total purchase price as additional costs towards buying your home.
The costs are comprised of :

V.A.T. (I.V.A.) :

Value Added Tax (or I.V.A. as it is called in Spain) is levied on all new properties.
It is normally charged at a rate of 7% of the purchase price.
The I.V.A. is collected in stages corresponding to your payment schedule and will be included in
your agreed instalments so you don't have to pay a lump sum.
Prices on this website do not inlcude I.V.A/V.A.T.

PLUS VALIA :

Plus Valia is a tax on the increase in value of the land and includes the area on which the building has been erected.
The rate varies in different districts but is usually between 16% and 25%.
This tax is charged according to the increase in value of the land as a result of a property being built on it.
The amount is paid when you collect your deeds and is included in the charges. (see Section headed “Notorial Fees”)

ANNUAL TAXATION & CHARGES :

WEALTH TAX :

The rate for this tax is 0.2%.
The tax is levied on your assets in Spain if you are not a permanent resident there,
e.g. any monies in funds, bank accounts & as a percentage of the value of your home.
This is effectively declared on your income tax form.
Should you live in Spain as a resident then you are taxed on all your assets, wherever located.
The tax, being a small percentage, is negligible.

ANNUAL REAL ESTATE TAX (IBI) / LOCAL RATES :

Local rates are around 0.4% of the rateable value, again a small annual amount.
The actual tax will depend on your location and type of property.
If you rent out your property, you will need to inform your Fiscal Representative.

INCOME TAX & CAPITAL GAINS LIABILITIES :

Income tax is charged @ 25% on any income arising from a Spanish source if you are non-resident.
Please note that income from outside Spain is treated differently.
For example - retired people are allowed to have an income of €10,000
before tax and there is a double - tax agreement with the UK.
18% is the rate for capital gains tax.

WHEN A PERSON BECOMES TAX LIABLE :

Once a person has been resident in Spain for 183 days, tax liabilities apply.

FISCAL REPRESENTIVE :

Although no longer mandatory, it is advisable, whether resident or not, to appoint a Fiscal representative to look after all you tax affairs.
The charge varies between representatives but is approximately £150 per annum.
This person should be able to advise you on various taxation matters.
He or she, will apply for a NIE number for you which is required once a person makes an investment in Spain.

ELECTRICITY & WATER CONNECTIONS :

The Moving-in Department of the Developer will arrange all paperwork in relation to the connection
of your electricity and water in addition to organising Standing Order payments for you.
The Department will also assist in the opening of a bank account.

PROPERTY INSURANCE:

As in the UK this is paid annually and is usually index-linked.
Again, the Developer will advise on this procedure and will offer assistance.
A two-bedroom property is charged at approximately £125 per year but premiums vary according to the policy type.

FURNITURE :

The cost of furniture will obviously depend on the size of your property and your tastes.

Please note that furniture prices in Spain are higher than those in the UK.
However, with more competition and the openning of 'Ikea', for instance, this is rapidly changing.
White goods, which were once high - priced are much lower, in some cases, cheaper than the UK.

There is a continued growth in English people establishing stores to cater for both Spanish and English styles.
These stores range from providing actual furniture to bed linen, curtains and other similar items.

Most furniture stores will delivery within a matter of days.

HEALTH INSURANCE :

Private health insurance is available.
Should you intend to work either for an employer or yourself, Social Security contributions provide cover.
When you become resident in Spain you will be entitled to healthcare as will any retired person.
Please look at the UK Government website before leaving : www.dh.gov.co.uk

Availability of health care in Spain is now recognized by many to be superior to the U.K. The highest range of health care,
both public and private, is as you would expect centred around the coastal developments and in the main inland cities.
Most of the rural communities do however have access to health centres and GP’s within an easily commutable distance.
(Taken from a Healthcare Website)

NOTORIAL FEES :

These are payable to the Notario for his work in preparing your deeds.
Notarios work to a scale of fees similar to that of the UK Estate Agent.
In practice, the fee is usually less than 1% of the price paid for the property.
The British Consulate has a list of firms.

WILLS :

You are advised to draw up a will acceptable to the Spanish authorities.
This will need to be witnessed by a Notario.
Such action will ensure that your assets in Spain are disposed of according to your wishes.

PROPERTY MAINTENANCE, CARETAKING & LETTING SERVICES :

There are a number of organisations offering their services that usually include airing your property to
making preparations for letting or friends visiting along with routine maintenance.
Prices vary and can be about £250 per year for a 2-bedroom maisonette.
Rental income will depend on the size of your property.
As a guide, during the high season (April till September) a one-bedroom property can attract
between £100 to £150 per week being regulated by location, décor, facilities, etc.
Commission for rental agencies is between 10% and 15%.

SPECIAL NOTE : We have tried to keep this guide as brief as possible. The maximum in additional costs should NOT be more than 10%.

Please do not hesitate to contact us should you need any further information before you leave on your Viewing Visit.
(more@europaproperties.net)

Disclaimer : Please note that this is a guide only and should not be treated as an authoritative document in relation to property purchase, taxation and other matters arising as a result of purchasing or residing in Spain.
You should seek professional advice in all aspects. The Europa Group accepts no liability especially as E.U. directives are being changed or new ones enacted.

THE COST OF LIVING, FOOD, SPORTS AND OTHER FACILITIES

INTRODUCTION:

It is hoped that the information in this guide will give you some idea of the life in Spain and the on Costa Blanca/Calida including the cost of living, food and restaurants available, medical establishments, veterinary surgeons, sporting facilities, etc.

COST OF LIVING & GASTRONOMY:

About £300 sterling per month will enable a couple to live comfortably mainly as a result of the area being an important market garden region growing peppers, tomatoes, lettuce, etc.
Obviously, the actual amount will depend on your lifestyle, size of property and use of utilities, ownership of a car, etc.
Being on the coast, seafood is plentiful and reasonably priced. A good wine costs around £2.00 sterling per bottle.

Examples of prices:

Tomatoes - 96p per kilo Peppers - 95p per kilo
Shoes from £7.50 to £20.00 (real leather)
Shirts/tops, etc from approximately £10.00 upwards depending on type of retailer.

To run your home itself (for those thinking of renting/using as a holiday home) depending on the size and location
£700 - £1,000 per annum (includes rates, taxes, property insurance, standing charges for electricity, water, etc.)

Restaurants abound in the area catering for all tastes including English, French, Chinese, Scandinavian, Indian, and of course, Spanish.

Please note that prices vary according to seasons and currency fluctuations.

Local Amenities:

The following services are available in each district:

Clinics & Physicians, Hospitals, Pharmacies, Veterinary Surgeons, Travel Agents, Bus Stations, Taxi & Car Rentals,
Cinemas, Churches, Golf Clubs, Riding Stables, Discotheques (All discos are built away from housing developments).
Now, as stated in other parts of the website, excellent shopping centres, malls, supermarkets and department stores.

GOLF:

Golf Courses within the area :

There are now too many to mention. If appears as though every new development has the ubiquitous compulsory golf course!
Usually 18 holes. Most are now designed by well known professional golfers.

TRANSPORTATION:

There are flights to and from San Javier Murcia Airport to most parts of the UK and to domestic locations in Spain such as Madrid.
There is a new airport planned for Murcia.
Regular bus and train services operate to Madrid, Barcelona and Cartagena.
Alicante has its own railway station serving most parts of the country and a large airport.
Cartagena has a railway system linking to Madrid (RENFRE) and there is a local system within the Murcia region itself.
Torre Pacheco has a smaller railway station.
Taxis are abundant and have specified parking stations though it’s helpful to have your Spanish phrase book handy.
Petrol is about a third cheaper than in the UK and, if bought from a supermarket station, is cheaper than the usual filling station.
Prices fluctuate according to market conditions.

VEGETATION & PLANTATION:

Being close to the sea, one can expect to find vast stretches of vegetation, orange and lemon groves, date palms, cotton
and a multitude of vegetables.

FRESH WATER:

The Tajo and Segura rivers provide the whole region with an abundant supply of fresh water.

SEA & BEACHES:

All beaches are cleaned on a daily basis. The coastline is ideal for all water sports.
The Promenade on the Mar Menor now stretches for almost 7 kilometres with, during the summer months
sometimes over 20 beach bars being open!

SHOPPING:

Supermarkets are open all day without a break for siesta and usually on bank holidays.
The larger establishments such as Mercadona and others are now open Sunday mornings and for some fiestas.

Mercadona, Eroski, Lidel and Carrefour (originally El Continente) are very well known supermarkets,
supplying all foodstuffs, hardware, etc.
There are other shops on the outer area of the supermarkets including newsagents, shoe repairs/key cutters,
electrical outlets, hairdressers, etc

Hypermarkets include Ikea, Eroski and others.

Street Markets open from 8:00 am to 2:00 pm and sell fresh fruits, vegetables, fish, meat, poultry, dairy foods,
flowers, ornaments and souvenirs, shoes, clothing, etc.
There is a market somewhere almost everyday of the week. (2 on a Sunday).

DRINKING HOURS:

Most bars are open all day and close at 1:00 am in the morning or later. Children are allowed in as long as accompanied by an adult.

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