Hot Property News Letter – November 2008
1: NIE NUMBER
Any foreigner purchasing a property or vehicle in
Spain will need to first obtain a NIE number. (Numero de identificacion de extranjero – or number of identification of foreigner)
An NIE number is also required for self-employed or those employed in full or part time work. It is also needed for obtaining a telephone line, mobile phone account, electricity account or for the purchase of central heating oil or bottled gas and even for the opening of a bank account. It is also needed to apply for a business permit, driving license (including an international license), a Spanish mortgage or other type of loan, inheritance of assets in
Spain, insuring property, paying taxes and signing onto the national Social Security Health plan.
The Spanish nationals have a similar number known as a DNI.
Although this is an important document, it is fairly easy to obtain, although it can take a bit of time, so it is advisable to make the application sooner rather than later.
The application should be made at the nearest police station with a foreigners’ department. The applicant should be prepared to get there as early as possible and for a bit of standing around. It is fair to say that the Spanish police do not always have good customer service skills. So watch clearly what is going on as there maybe other queues for other reasons, so make sure that you are in the right one. For the applications, can you make sure that you take the following documents:-
Completed application form and one copy (Hot Property has these and we will help you to complete this form, as it is in Spanish) your passport, with one copy and 2 passport sized photographs
A copy of the application will be returned to you, together with your passport. Depending on the particular office, it can take from a few days to a few weeks to process the application. You can collect the certificate yourself or arrange for someone to collect it for you – it is a white A4 size paper document with your name and NIE number.
If all this sounds bewildering, Hot Property have found an excellent service for a fee of 85€ per person. For this fee, you will be picked up from an agreed address and taken to the
Alicante police station.
The service includes standing in the queue on your behalf, after first making sure that the paperwork has been correctly prepared, while you go for a coffee. You return at the appropriate time to make the application. You will then be taken home.
The Certificate will be collected the next day and brought to our office for you to collect. From my own experience, I would have used the service myself if I had known about it.
2: LEAVING THE
UK.
If you are thinking about leaving the
UK and have concerns, it is worth remembering that, to date, over five million British citizens have moved overseas, with 4,000 more departing permanently each week.
Depending on location, your new lifestyle could mean fewer hours wasted on commuting & working, leaving more time for your family & yourself, blue skies, warmer weather, shorter winters, no scraping ice off the car windscreen. A healthier lifestyle - more time spent in outdoor activities, friendlier communities and happier, more relaxed, people.
So why choose
Spain? According to a U-Switch survey, The European Quality of Life Index,
Spain offers the highest quality of life in
Europe. This study compared 19 factors that affect quality of life, ranging from income and working conditions to healthcare, education and cost of living.
Spain has the lowest average income in
Europe but low taxation and cheaper essential goods costs put them at the top of the overall quality of life indicator.
Even in this topsy-turvy market, shrewd investors know that it is actually madness not to buy in
Spain right now. As it is a buyer’s market there are excellent bargains to be found. History shows that eventually the market will pick up again and those who have bought in at the bottom of the curve, will be well-placed to profit. The Spanish Housing Minister Beatriz Corredor stated that the "sharp slowdown" in house sales will be over by mid 2009 at the latest.
Every year more northern Europeans choose to set up home here, and with the slower pace of life, congenial climate, spectacular scenery and lower cost of living it is not too difficult to make the choice between suffering the damp weather, cold frosts and grey skies for the café culture, blue skies, warm seas, clean beaches, private pools and relaxing in idyllic locations, with 200+ sunny days a year.
As
Spain is an EU member state, British citizens and citizens of other EU countries are legally entitled to live and work here.
Spain is also a very large country, twice the size of the
UK, with a population about half the size - 40million.
Over 750,000 Britons have already made their homes in
Spain, attracted by the combination of a high quality of life and a warm & sunny climate.
It is also a misconception that most of the British in
Spain are retired. Around 40 percent are actually under the age of 45 and another 40 percent are in the 45 - 64 age group.
The number of families with children moving from the
UK to
Spain is increasing. Spanish culture is very child-friendly. Children can be involved in more occasions and events then they would be in the
UK. Family ties are often more prized in
Spain than the
UK.
House price inflation has been high in
Spain in recent years and, although very cheap property is probably a thing of the past, prices are still lower than the
UK. The recent credit crunch has brought prices even lower and bargain-seekers from many countries are finding excellent bargains, even on the coastal resorts.
If you are considering buying property on the Costa Blanca, either now or at some future date, then please contact Hot Property, even if you only want an informal chat about the areas and homes you are interested in.
3: A FEW IMPORTANT THINGS TO DO WHEN MOVING TO
SPAIN.
There are requirements of the UK Inland Revenue for those leaving the
UK, and no doubt for persons relocating to
Spain from other countries, both within and outside the EU, will have similar requirements.
If you are on PAYE and are leaving before the end of a tax year, it’s likely you’ll have overpaid tax. This is because the earlier in the tax year you leave, the less your tax-free allowance will have been factored in by your PAYE payments. Claim a refund of the overpayment. Also contact National Insurance. You can choose to keep making payments if you wish to. The Inland Revenue web site http://www.hmrc.gov.uk/individuals/fgcat-leavingtheuk.shtml has forms which can be downloaded for both
UK and non
UK citizens leaving the
UK to live abroad.
Ensure that you, and anyone going with you, have at least a year left on your passport. You can apply for a new
UK passport from the Embassy in
Madrid, but it is advisable not to try and do this within the first year.
If you have pets, obtain a pet passport and meet all medical requirements, along with vaccinations and identity chips.
Think about which personal effects you want to travel with you, because they are too valuable to lose.
Think about which items you want to travel in your luggage rather than waiting for them to arrive later.
Arrange shipping - get quotes from several reputable shipping companies. Try to do this in good time so you have maximum choice of shippers.
Decide which of your belongings, furniture, appliances, etc, you want to take with you and which you are going to leave behind. This can be done after discussion with shippers about costs when you can decide fully whether it is worth taking some items or not.
Spain does have some fantastic furniture shops and the costs of replacement furniture may not exceed the cost of shipping.
Open a Spanish bank account in
Spain, so it will be ready to receive funds before you arrive. Ask your current bank for a credit reference, as this may help you to get credit in
Spain. Some British banks how operate in Spain, such as Barclays, Lloyds TSB, Halifax, etc and, as rule, they have the capacity to transfer between accounts in different countries without commissions, so check with your bank in your own country if they have banks in Spain. Even then, most will generally be happy for you to remain a customer even after you have moved abroad. Accounts with these
UK banks in
Spain will be in English. It is also possible to have a Spanish bank account with statements, on request, in English.
Contact credit card or other finance/loan companies to inform them that you are moving to
Spain. Retain the card, as it will be useful to retain a credit card for purchasing flights on the internet, etc.
Contact your pension provider and inform them of your move. Request an up to date statement of your pension position. Pensions can be paid monthly or twice yearly to your Spanish account. This will be done without charge by your Spanish bank, so ensure that they do not charge.
Contact your car insurer - tell them you are moving and ask for written confirmation of your ‘no claims’ bonus because this will often be accepted in Spain, enabling you to get cheaper insurance after you have moved. Cancel remaining time on your car insurance for a refund.
Cancel your TV licence - you can claim a refund on any time (in 3 month blocks) the licence has to run after you have left the country.
All of the above should be done with either the correct form, or in writing but inevitably you will cancel some things by telephone. We advise keeping a diary every time you make a call to cancel a service in case they do not carryout your instructions. This record, including who you spoke to and at what time you made the call, will help you get a refund when a company keeps taking money from you even after you cancelled their service.
Contact other organisations you are a member of that you might want to cancel your subscriptions to, such as magazines or sports clubs, etc.
If you have investments such as shares, unit trusts, premium bonds, etc you need to write informing the providers of your change of address. You also need to withdraw any money you have in ISAs, as these are only available for
UK taxpayers.
Look through your bank statements and make a list of regular payments that should be stopped and stop them at the appropriate time.
Contact your local council and arrange a refund if you will have overpaid council tax.
In respect of your driving, it is not possible to have a
UK or other EU driving licence with a foreign address. If you are not retaining a
UK address, you should inform the DVLC of your move - perhaps give them a relative’s address to write to. Hold onto your British driving licence. You’ll need it until you get a new Spanish driving licence at your destination. You have a number of months to do this; although in practice the Spanish police and Guardia Civil do not seem to bother which licence you have.
Cancel your house insurance from an appropriate date. (If you are currently renting, and paying contents insurance this will be at midnight on the day you leave. If you own a house, only cancel buildings insurance after you no longer own the property.)
Contact your medical insurance company to discuss options regarding your move. Generally, medical insurance in
Spain is cheaper than many other EU countries and we can help you with a new policy. However pre-existing medical conditions will not be covered so you may wish to retain any medical insurance, if possible, depending on personal circumstances. We have covered this subject in a previous newsletter, so let us know if you would like a copy.
Contact your life insurance company. You will probably want to continue payments so it is important they know your new address.
Check your mobile phone will work at your destination. If it won’t, make arrangements to buy one that will. Ultimately a Spanish mobile will be cheaper to run.
Inform schools of your children’s move and request an up to date report to take to their new school to enable them to be placed appropriately. We have covered this subject in a previous newsletter, so let us know if you would like a copy.
Arrange for gas, electric, telephone, satellite, internet provision etc to be disconnected. Do make sure you pay all your bills before you leave. Debt collection agencies operate worldwide. The last thing you need is for your credit record to be spoiled and debt collectors chasing you in your new country.
If you need prescribed medicines, make sure you have sufficient to last you until you can arrange prescriptions at your destination.
If you are selling your computer, then back-up the required contents of your desktop computer onto a portable hard drive and take it with you. Note: - If you are selling your computer, ensure the hard disk has been wiped completely, using a proper program, as just deleting the contents of your hard drive is not enough to prevent the person who gets your computer from retrieving and reading the contents of the deleted hard drive.
Provided you have a good mail redirect, a few of the above items can easily be left until you have moved into your new address overseas – for example, items such as writing to tell share registrars your new address.
4:SPANISH ELECTRICS
You may have noticed, during a previous visit to
Spain, the handily placed electrical socket, usually with in an easy arm’s reach of the bathroom basin. This is a strict NO-NO in the
UK and in other some other countries. However here it is very usual for plugging in a hair dryer, or another similar item.
This prompts the question – "Is it safe?” Now I am not an expert in Spanish electrics, although I could find my way around a domestic
UK system. The Spanish system seems to be similar in that you plug in an appliance and it either goes bang, or it works. So here are a few observations.
The provider is Iberdrola, you have no other choice in this matter. The Spanish produce electricity by a number of means, but they are one of the biggest users of wind turbines in
Europe. Your electricity bill will list a number of items, including the charge for units consumed. The actual standing charge, which will vary depending on the capacity ("potencia") noted in your contract. The options are 3.3Kw, 5.5Kw and 8.8Kw. The higher the allowance, the higher the standing charge. If needed, the potencia can be upgraded at any time, but you will need to consult a Spanish electrician. It is not clear if the Potencia can be reduced, as far as we know it has never been tried.
The meter is normally housed in an external plastic box, set into the boundary wall. It may have a door, it may not. The door may have a padlock, it may not. The box is the property owner’s responsibility. Inside the box will be the meter and two fuses. There is no need for you to look in this box unless there is a fault and, even then, this should only be carried out by an electrician. All power arrives at the box from a local circuit, usually run overhead on low voltage insulated cables, which are usually wound around each other. Note:- The steel pylons that carry these cables are always located on private land and, if you look carefully in places, you will see boundary walls diverted around them. This local circuit is fed by higher 3 phase voltage cables on higher pylons, with the wires kept at a distance form each other. All electricity cables are gradually being placed underground.
Like most of Europe (including the
UK) the supply is generally about 230 volts as a maximum, which means that any appliances bought in the
UK will work in
Spain and vice versa. The only difference you may notice is that, when you plug in a kettle, the lights might dim as the actual voltage tends to be usually below 230 volts.
Within the property will be a consumer unit, very similar to the
UK and other countries. This unit contains a main circuit breaker, RCD (Residual Current Device) which is the main safety device and will trip in the event of any current leakage. The main difference to the
UK is that re is no ring main. Everything is in the form of radial circuits, with lighting and power sharing a circuit, depending on where the sockets and lights are in the property.
Spain uses the standard European socket with a two pin arrangement and side earth. There are two types of plug, both of which fit the standard socket. A smaller two pin plug for double insulated appliances which don't need an earth, and a larger two pin and side earth strip for those requiring an earth. Line and neutral are not distinguished, so plugs can go into sockets either way. Plugs are not individually fused, although appliances with
UK sockets can be adapted to work with Spanish sockets either by replacing the
UK plug or using a cheap and widely available adaptor. Also,
UK plug fuses are not available in
Spain, so ensure that you bring plenty of spares, or ideally replace the
UK plug with a Spanish one.
So, to answer the original question, any sockets in bathrooms must be RCD protected and therefore - should be safe!
POST SCRIPT
The following article is scheduled to be included in the December Newsletter, but because of its benefits, we have decided to add the item to this issue:
1: TRY BEFORE YOU BUY!
Hot Property are pleased to announce in conjunction with one of our trusted developers, the unique opportunity to rent any of their current "key-ready” properties for up to 3 years. At anytime during this period the renter will be able to purchase the property, or any other of the developers properties and enjoy fantastic savings at the time of purchase.
Discounts:
If the renter purchases within the first year, then the price will be reduced by the full amount of rent paid within that year.
If the renter purchases within the second year, then the price will be reduced by the overall rental costs less 15%.
If the renter purchases within the third year, then the price will be reduced by the overall cost less 25%.
All properties can be rented unfurnished, however for an additional small monthly payment, the properties will be fully furnished.
This fantastic offer is primarily aimed at clients who may have property to sell before they can purchase their dream home in the beautiful Northern Costa Blanca.
The benefits to all, are that it offers the opportunity to experience a new life in
Spain, including a new home and surroundings, before actually making the final commitment to relocate.
For more details of the properties available, search our website for;
HP1050 – 1, 2 and 3 bed roomed apartments in Benissa.
HP1052 - 2 bed roomed apartment in Lliber, the
Jalon
Valley
HP1053 - 3 bed roomed townhouse in the
Jalon
Valley
Contact us today for more details of this fantastic and unique offer.
This newsletter is intended as a guide and to be informative and helpful in the process of searching for and purchasing a property in
Spain. Total accuracy cannot be guaranteed and in all legal, fiscal and other matters a fully qualified professional should be consulted. Reproduction of any part of this newsletter is not permitted without written permission.
