Important Information

Living in Spain

National Health
Providing 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. when you are employed and
paying class one you need to be earning a minimum of £3,500 in that
tax year. When you are self-employed and paying class two then you
must of made at least fifty payments in that tax year. If you do not
qualify for this year, but you did in the previous tax year, then
you are still entitled but the cover would be for only one year
instead of two. 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 each other. This will be of help, as
it means that you can use this form and be covered for two years
free health cover whilst in Spain.

Regarding Form E 106 
you need to contact D.S.S. Newcastle and they will send you the relevant form to your home address in the UK. return the completed form and inform the Spanish address. the relevant Form E
106 will be sent to in Spain, present it to your nearest I.N.S.S. office, which is similar to our D.S.S.

After the form has been stamped by them you retain it in case of illness and it is valid for two years. If you are not of pensionable age ie. under 60/65yrs,after the two years if you are not contributing to the
Spanish social security system private insurance cover will be necessary. The Euro-card has replaced the E111 and officially is only valid for holidays and not for living in Spain as a resident.

If you are already living in Spain and need to stop paying taxes in the U.K. you need to see a gestoria who will complete form FD9 to apply to the British tax authorities for an income tax exemption.


Medical facilities are excellent in Spain and there is a first class
National health Service (social security) which is free to those
within the EEC with reciprocal arrangements However Euro-card is only
intended for the short term, those intending to work in Spain will need to
join the seguridad social system similar to our National Insurance Scheme.

Hospitals and clinics are everywhere, most with multi-lingual staff. Private
health insurance is also available at a lesser cost than the U.K. if
the cover is restricted to Spain. For people living in the Comunidad
de Valencia, which includes the province of Alicante and the Costa
Blanca area; having signed on the padron (voters list) at their local town hall,
can obtain free health, but only in Valencia. After applying at the local health
clinic you will be provided with a temporary card, followed a few months later
with a permanent heath card (S.I.M.).

Spanish schooling is excellent and of a high standard, for those of you with
young children it is best to move them straight into a Spanish
school where they will be taught English as a second language and
very quickly they will be talking Spanish as a native; there are
also plenty of private and foreign language schools. We
believe however that for children over the age of ten, with no
knowledge of the Spanish language, it is better to complete their
education in England before coming to Spain to live; and it is
essential that they obtain a high level of conversational and
written Castilian Spanish. Also bear in mind that should you chose
to live in the Cataluña or northern Valencia provinces they will
need to learn an additional language.

Local Taxes
The local tax (I.B.I.) is approximately £160 including rubbish
collection.
Non Residents are required to pay an annual wealth tax of 0.05% of
the declared value on the title deeds (escritura de compra y venta)
Residents or anyone living in Spain for more than 180 days of the
year should pay their taxes in Spain. There are various allowances
in addition to the basic allowance of 5.200 Euros (6090 Euros over 65 years of age)
Unfortunately there is no marriage allowance.
(We apologise for quoting a marriage allowance before on this page
having been provided with the wrong information)

Urbanisations
Should you decide to live in an urbanization, the Annual fee will
depend upon the type of facilities there are to be maintained, for
example swimming pools, parks, etc . The average Annual charge for
the modern complex with a community swimming pool, would be around
£400 sterling equivalent.

Water
The water you use is metered; the Annual cost for the average
apartment would be approximately £160 and for a small detached
property approximately £475 for a property with a small garden. The
tariffs vary according to the location. The more water you use the
higher the rate you will be charged.

Car Tax
Although not having a road fund licence as in the U.K. a local tax
is payable, depending upon the size of the car. This Annual charge
(like most taxes) is less than in Britain, and is payable in
arrears. For example the tax payable to Alicante Ayuntamiento (town
hall) for a Seat Leon for the year 2005/6 was € 79.00

Electricity
The cost of electricity in Spain is approximately 20% more than the
U.K. There is not the competition yet. to force the price down.
The white meters for cut price electricity used for electric
radiators are available, most people heat their house with butane
gas, using the gas bottles which are delivered to the home, or can
be obtained at various local distributors, by exchanging empty
bottles for new.
Also popular and efficient are combined
air-conditioning/heating units.

General

During the past 15 years a number of major factors have ensured that Spain enjoys long term growth and stability. The change from dictatorship, coupled with Spain's entry into the EEC, has brought prosperity
un-thought of 25 years ago. Having one of the world's finest and healthiest climates helps, with an average of 320 days a year of sunshine and no real extremes. Even the World Health Organization has selected the Costa Blanca (Torrevieja in particular) as one of the healthiest places in the world. There is a wonderful mixture of people and cultures, particularly along the coastal areas, and a long history of settlement by various armies has seen a cosmopolitan lifestyle develop. The most recent great armies seen to be invading Spain include those of our clients, seeking a better lifestyle, quality of life, healthier atmosphere and friendly people, not forgetting about that great climate.

Cost of Living in Spain

Many clients ask about the cost of living, well first it has to be said that for many things, the cost of living is still quite low, the climate and lifestyle ensures this. Fresh food is available daily, fish caught and sold every day and an abundance of fruit and vegetables especially, form the Mediterranean diet, adding a little vinegar and olive oil. There are plenty of restaurants that offer a 3 course lunch (menu del dia) for around 9 euros per head, which normally includes wine/ beer and coffee.

Of course the current low value of the £ is not helping those ex pats who rely on a British pension.