SPAIN IS DEFINATELY CHEAPER TO LIVE

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Monday, December 04, 2006 walker Apartamento I've made 70 posts Send private message to walker	Hi everyone, normally post on the Manilva site where I have an apartment and just had to reply to this one. I bought an apartment July 2005 and will be retiring to Spain next year, as I cannot afford to live in the UK on my pension! Just a few examples, I think will pursuade you. Water Rates, Electicity & Gas charges plus Council Tax, (For a two bedroom semi, if you have a bigger property then you can add 50% to 75% on, as this is by far the biggest expence), all come to just over 3,500 euros a year, this is three times as much as all the charges put together that I would pay in Spain. Petrol is at least 20p a litre cheaper in Spain and don't forget, you have days and days of FREE sunshine, FREE beaches and wonderful scenary. So all that extra cash will give you a good living in Spain. regards, Paul Smith Spam post? If so please click here to report it
04 Dec 2006 10:20 PM Smiley EOS Superstar I'm in Nueva Andalucia I've made 2076 posts Send private message to Smiley	Dont forget Paul that tax and without a doubt social security can be a great deal higher than in the UK. If you live here for more than 183 days a year then legally you are regarded as a resident for tax purposes. YOu should pay social security here which is a minimum 240 Euros a month and you are taxed here on your global income and assets. A beer, fags, vino, eating out and petrol may be cheaper but taxes can be quite injurious. RGds _______________________ *Smiley* - patrick@marbellamortgages.com www.marbellamortgages.com *Sarcasm is the lowest form of wit .....but any form of wit is an achievement* NO MATTER HOW MUCH MONEY YOU HAVE GOT, IF YOU HAVE NOBODY TO SHARE IT WITH, THEN ITS JUST NUMBERS IN THE BANK. TO ESCAPE CRITICISM DO NOTHING, SAY NOTHING, BE NOTHING! Spam post? If so please click here to report it
05 Dec 2006 8:42 AM walker Apartamento I've made 70 posts Send private message to walker	Hi Smiley, Note what you say. Don't think I pay spanish social security, as a retiree. Spain also has allowances before you pay tax on your pension. As a resident will not be liable to certain taxes that non residents pay. The wealth tax is very small, Iam not rich, so all in all, will still be better off than in UK. regards, Paul Spam post? If so please click here to report it
05 Dec 2006 5:08 PM Smiley EOS Superstar I'm in Nueva Andalucia I've made 2076 posts Send private message to Smiley	Hi Paul check on the sociall security thing to be double sure. I am not retired yet unfortunately (or fortunately depending on which way one looks at it so it is something I do not know specifically) but I believe that if you expect to use the health service here you will need a social security card and hence will pay social security. As I say it is a grey area (forgive the pun) for me but better tomake sure exactly where you stand. If you take Residencia you are taxed in Spain on your global income and subject to the size of your pension that may be taxable. Perhaps we have a pensioner in the forum who can clarify. Hope you are right as I will have found a good reason to look forward to getting older. Rgds _______________________ *Smiley* - patrick@marbellamortgages.com www.marbellamortgages.com *Sarcasm is the lowest form of wit .....but any form of wit is an achievement* NO MATTER HOW MUCH MONEY YOU HAVE GOT, IF YOU HAVE NOBODY TO SHARE IT WITH, THEN ITS JUST NUMBERS IN THE BANK. TO ESCAPE CRITICISM DO NOTHING, SAY NOTHING, BE NOTHING! Spam post? If so please click here to report it
05 Dec 2006 5:25 PM Trisha Studio I've made 30 posts Send private message to Trisha	I'm not a pensioner nor am I working so I pay for private medical insurance in Spain. If you are in receipt of the UK state pension and resident in Spain then you are entitled to free health care. Spam post? If so please click here to report it
25 Feb 2007 9:45 PM bobaol Finca I'm in Leicestershire and El Galan, moving to Guardamar in a couple of years I've made 569 posts Send private message to bobaol	I know it's a long time since this thread was started but have been doing some homework. I'm not yet retired but I will be in a couple of years when I want to move out on a permanent basis. The UK and Spain have a reciprocal agreement on tax which means you only pay tax in one country. If you are in receipt of a pension (s) from UK, you can either pay tax in UK or use an E101 to transfer your tax liability to Spain. This doesn't depend on whether you are resident or not. You can opt to pay tax in either country. No matter what rate of pension you get, whether it the normal state pension, public service pension (more of those later) or a super high pension (retired company director, GP, city financier, Spanish estate agent ) your tax liability in UK will be less than that in Spain. My example was of someone on a pension of £15.,000 pa who will pay just over £1,000 more on the Spanish system. If you have a job in Spain, you must be taxed in Spain. The good news is that, if you also get a UK public service pension (Forces, Police, Civil Service etc) this will not be counted towards your earning in Spain. The Spanish social security payments (compulsory for anyone working in Spain) is about 4.7% (Up to a maximum earning threshold of £2700 per month). Please note these figures are approximate as the government keeps changing them. Your employer will pay some 20%+ into the system. This compares favourably with the UK 11% National Insurance. If you are self employed, it is 2.4% in Spain but you will not receive sick pay. You will, however, be entitled to a state pension when you retire, the same as those not self employed. The main reason for the disparity in Spain is that there is no zero threshold for tax as in Spain. Everything is taxed unlike UK where your first £2150 is free of tax (£5030 if there are two of you). In Spain, you pay a staggered rate up to a maximum 49% (40% in UK). So if you are looking at the cost of living in Spain, it can work out more if you are employed. The cheap vino tinto, cigarillos and pesca (not to mention the gin, vodka etc.) defrays the cost and it is cheaper to put yourself into an early grave in Spain if you so wish. (As a smoker and drinker I feel a bit of a hypocrite after that last sentence) Health costs depend very much on where you live (see other posts on Healthcare) but I would advise you to take out private health insurance no matter how old you, it is much cheaper in Spain than UK (for someone of my age, about £53 per month compared with £130 per month in UK). No matter what, enjoy your time in Spain. Despite many of the problems you read of on forums, it is a lovely place to live and I have found the Spaniards to be very friendly and accommodating. It just takes a while to get used to the slower pace of life but these siestas are brilliant. Long may they continue!!! Spam post? If so please click here to report it
24 Jul 2008 5:11 PM HiSpain Parcela I've made 18 posts Send private message to HiSpain	I once worked for a Spanish company in the US and a tax consultant introduced me to the concept of possible 'double taxation' -- like being taxed for your work in the US and your stay a legal resident of your native land. For expats who work in 'two countries' -- living in one for some part of the year and migrating to the other for another part, taxation issues can get a little ponderous. _______________________ Quick Spanish Mastery \| UK Property Investment Spam post? If so please click here to report it

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