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Posted: Fri Jun 1, 2018 8:40am
32 replies772 views10 members subscribed
Steve62

Posts: 16

Location: La Marina

3 helpful posts

Hi everyone,

My name is Steve and my partners name is Emma. We are coming out to La Marina in October to meet up with the Barclays estate agent to hopefully purchase a property to live in permanently. We visited earlier this year and absolutely loved it, so we selling up and coming to live our dream in the sun. We have our bank account and NIES's sorted already and I have an independent advogardo to assist me in my purchase. I'm taking   early  retirement from the civil service at 56 year and 5 months and I'm hoping the pension they are giving me will be  enough for us both to live on ( £16,000) without the need to go into our savings ?   I believe I will get taxed on  my civil service pension at home so will not be liable for any further deductions in Spain, is this correct ? As my pension is our only source of income for now, do I  need to declare it on the yearly tax returns ?

Sorry for all the questions guys, but I'm someone who likes to plan in advance and be aware of what is in       front  of me. 

ColinL

ColinL

Helpful member

Sat Jun 2, 2018 11:37am

Posts: 88

Location: La Marina

69 helpful posts

Posted: Sat Jun 2, 2018 11:37am

Hi there, best of luck with your plans - I bet you're excited!! You'll find loads of advice based on other peoples' experience (some good, some bad - that's life I guess!). The best advice I can give you is that living permanently anywhere is very different to visiting as a tourist - issues that aren't important to a tourist may be significant to a permanent resident. Don't let your sunglasses be rose tinted. It's very good advice to rent somewhere first to real test your chosen area and style of house etc - don't let anyone give you hard sell of a dream, find out what the reality is for yourselves and make sure it's what you really want. There are literally hundreds of houses of all shapes and sizes for sale in La Marina urbanisation - so easy to buy but hellishly difficult to sell.  Don't commit too soon, buy only if you're 100% sure. Fingers crossed it all works out for you. 

Steve62

Steve62

Original Poster

Sat Jun 2, 2018 11:42am

Posts: 16

Location: La Marina

3 helpful posts

Posted: Sat Jun 2, 2018 11:42am

Thank you Colln for taking time to reply, appreciate the advice.

ColinL

ColinL

Helpful member

Sat Jun 2, 2018 11:46am

Posts: 88

Location: La Marina

69 helpful posts

Posted: Sat Jun 2, 2018 11:46am

No problems, Steve. Anything I can help you with, I'll be glad to. If there's anything you would like to ask feel free to PM me. 😁

Steve62

Steve62

Original Poster

Sat Jun 2, 2018 2:11pm

Posts: 16

Location: La Marina

3 helpful posts

Posted: Sat Jun 2, 2018 2:11pm

Thanks mate 

Kimmy11

Kimmy11

Super helpful member

Sat Jun 2, 2018 10:04pm

Posts: 1350

1527 helpful posts

Posted: Sat Jun 2, 2018 10:04pm

Hi Steve,

The cost of living here is not as cheap as it used to be, in some part due to the weak £ exchange rate. Difficult to say what your costs will be, as it will vary depending on the type of property you want, but probably the biggest difference is Council Tax (called "IBI" in Spain and often incorrectly referred to as "SUMA", which is actually the name of the agency in this area that collects  such taxes on behalf of the Government). To give you an idea for comparison, the Council Tax charge for our 4 bed detached house in Surrey in 2015 was £2,600. The IBI charge for 2017 for our 3 bed detached house with private pool in Formentera is Eu 360.

That said, hubby and I are in our late 50s, so we don't qualify for Spanish state health care and so we have to pay for our private health care at an annual cost of Eu 1,700 for the both of us. Once we reach UK pensionable age, we will be able to obtain an S1 from DWP Newcastle and transfer our healthcare benefits from the UK (assuming the rules aren't changed post-Brexit).

So that's the two major cost differentials. After that, electricity is as expensive as the UK; there's no mains gas network in Spain, although some urbanisations have gas installations supplied by large stored deposits. It's also possible to run things like heating and cooking on gas appliances run on bottled gas, which is much cheaper. For an area of the country that seems to have a constant drought, I think our water bills are very reasonable. Both electricity and water useage are metred.

If you live in Spain less than 183 days per tax year (the Spanish tax year runs from 1st January to 31st December), you will have to pay Non-resident tax; as property owners, the 5 months of our first year here (as Non-residents) amounted to only Eu 114. After 183 days, you're deemed a fiscal resident of Spain and will pay tax here based on your worldwide income, except for some Government pensions - my husband has a military pension so, like you, the tax on this continues to be paid in the UK and offset against our Spanish tax return.

Eating out here can be very cheap, as well as drinking. Buying fruit and vegetables in the markets is much cheaper than in the supermarkets. Convenience foods are not as wide-spread in Spain as they are in the UK, and so can seem relatively expensive.

Fuel is cheaper, but cars, even second-hand ones, are expensive. Vets are cheaper.

A few weeks ago, in response to a similar query, I posted a breakdown of monthly costs, but I can't find it now.  It took a long time to do, but I couldn't cut and paste my spreadsheet into this reply area.  If I can track it down, I'll send you the link.

Top tips:

-  Don't rely on one estate agent - as Colin said, there's a lot of property for sale and it's not going as quickly as some agents would have you believe. 

-  Don't hand over any money to an agent - many still ask for a Eu 3,000 non-refundable "holding" deposit; make sure your lawyer has reviewed the property details and draft contract, they will tell you when it's OK to pay the deposit.

-  Do appoint an independent lawyer, not one tied to an estate agent - you need to be sure that your lawyer is working for you, rather than the vested interest of the agent who recommended them.

My in-laws lived in La Marina for 15 years and absolutely loved it.  If you have any specific queries, don't hesitate to ask.

Good luck!

Kind regards,

Kim

Steve62

Steve62

Original Poster

Sun Jun 3, 2018 9:00am

Posts: 16

Location: La Marina

3 helpful posts

Posted: Sun Jun 3, 2018 9:00am

Hi Kim.

Thank you so much for your detailed reply it's very much appreciated. Going by everything you have written I think we will have enough money to live comfortably when we get out there.

Look forward to meeting you when we get established on the Urbinisation.

Regards

Steve

Elli2626

Sun Jun 3, 2018 10:58am

Posts: 41

Location: La Marina

7 helpful posts

Posted: Sun Jun 3, 2018 10:58am

Steve62 wrote on Fri Jun 1, 2018 8:40am:

Hi everyone,

My name is Steve and my partners name is Emma. We are coming out to La Marina in October to meet up with the Barclays estate agent to hopefully purchase a property to live in permanently. We visited earlier this year and absolutely loved it, so we selling up and coming to live our dream in the sun. We have our bank account and NIES's sorted already and I have an independent advogardo to assist me in my purchase. I'm taking   early  retirement from the civil service at 56 year and 5 months and I'm hoping the pension they are giving me will be  enough for us both to live on ( £16,000) without the need to go into our savings ?   I believe I will get taxed on  my civil service pension at home so will not be liable for any further deductions in Spain, is this correct ? As my pension is our only source of income for now, do I  need to declare it on the yearly tax returns ?

Sorry for all the questions guys, but I'm someone who likes to plan in advance and be aware of what is in       front  of me. 

Thank you Steve for your help, much appreciated, you are well organized 👍

Good luck

Best regards

Monika

Andrea Murphy

Andrea Murphy

Helpful member

Mon Jun 4, 2018 11:51am

Posts: 243

Location: Almoradí

146 helpful posts

Posted: Mon Jun 4, 2018 11:51am

Hi,

You will have to declare all your pensions out here if you are Fiscal Resident, including your Civil Service Pension, you will be taxed in England on your Civil Service Pension and not in Spain but you still have to declare it.   Enjoy yourselves, we have been here since 2001 and would not change anything, love it.

Steve62

Steve62

Original Poster

Mon Jun 4, 2018 12:35pm

Posts: 16

Location: La Marina

3 helpful posts

Posted: Mon Jun 4, 2018 12:35pm

Thank you Andrea for taking time to reply, many thanks.

Regards

Steve

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