Posted: Thu Feb 25, 2021 8:28pm
Hi Ant and welcome to the forum,
First thing's first - congratulations! You're Irish, so you're not subject to all the post-Brexit impact affecting UK citizens.
I'll leave advice about different areas of Villamartin to those who live there and while I can't recommend a mortgage advisor, I can give you some general advice.
Regarding being self-employed, this is called "autonomo" in Spain and it's expensive. You have to make the equivalent of National Insurance contributions each month, whether you earn any income or not. The amount is discounted for the first year of trading, but increases steeply from then on. On the upside, it does give you access to the State healthcare system for yourself and your dependants. Depending on your specific circumstances, you may need a tax advisor - we use Abaco Advisers in Torrevieja, as they know both Spanish and UK tax law.
If you initially buy your property as a holiday home and remain resident in Ireland, there are a number of outgoings involved:
Utilities - Electricity in Spain is on a par with the UK, Water is cheaper, but in both cases the standing charges are high. Holiday home owners are often surprised at the amount of their bills when they haven't visited their property.
Council Tax - called "IBI" (Impuesto sobre Bienes Inmuebles) in Spain and collected by the SUMA agency on behalf of Town Halls in the Alicante region, is much cheaper in Spain, e.g. in 2016, my Council Tax in England was almost £3,000 per year, in Spain, it's Eu 365.
Refuse collection - called "Basura" and, depending on where you live, will be billed either by your Town Hall or Water company. I think this is incredible value for money - we have our bins emptied every day for only Eu 70 per year.
Non-resident tax - this tax is based on the catastral (land registry) value of your property. Typically, you're talking low hundreds, rather than thousands, of Euros per year. It's paid a year in arrears, so if you were to buy this year, the deadline for payment would be end December 2022 (the Spanish tax year runs from 1 January to 31 December).
Banking - Spanish bank accounts are not free and Non-residents, in particular, have to pay fees of around Eu 40 per quarter just for having an account. Typically, it's cheaper for Residents, e.g. we pay Eu 15 per quarter with Banco Sabadell.
Internet services - can be combined with a landline, mobile and TV packages. Non-residents can contract for an "on/off" service, so that they only pay for it when they're at their property.
You'll also need Home insurance, which is a combined buildings and contents insurance cover.
All of the above costs will be applicable if you decide to move permanently to Spain, although you'll then have to pay Residents' income tax in Spain, rather than Non-residents.
There could be other charges. For example, if you buy on a "community" with communal facilities, such as a pool, gym, gardens, etc. there will be maintenance fees to pay.
I hope this has given you a good idea to start.
My top tip for when you're ready to purchase - use an independent lawyer, not one tied to the selling agent.
Good luck!
Kind regards,
Kim