Hot Property News Letter – October 2009

 

Welcome to this issue of the Hot Property news letter which we hope you find informative and helpful. If you have any suggestions for future issues, comments or questions, which we can address in future issues, you can contact us at info@hotpropertyspain.net 

 

1: ELECTRICITY IN SPAIN

 

Until very recently, there was a choice of one electrical supply company in each province of Spain and the Costa Blanca, the choice of one was Iberdrola.

 However, in line with other EU countries, new legislation came into force on the 1^st of July 2009, to open up the market to other companies, allowing them to buy the power from the major electricity companies

and then sell it on to consumers.

Various electricity providers in Spain have recently been sending out letters to consumers informing them of the changes and offering different options.

Simple as this may sound, all correspondence will be in Spanish, and even if fully understood, there are a number of questions that need to be considered before making a decision on which supplier to choose, added to which there is also a government price increase due.  

Apparently there are three choices.

The first is to move to one of the new 18 companies, which will be allowed to sell electricity.  This list also includes those which already provide electricity. It will be necessary to contact each company in turn to find out their tariffs, or alternatively wait for them to approach you with their offers.

The second is, what are described as ‘last resort’ suppliers (comercializadoras de ultimo recurso) and are in fact the five current providers: Endesa, Iberdrola, Unión Fenosa, Hidrocantábrico and EON, who are obliged to supply electricity at a price no higher that fixed by the government.

They currently offer a maximum 2% discount on the government tariff. Apparently there is an automatic formula to set the Last Resort Tariff, or TUR rate – Tarifa de Último Recurso and will depend on the result of an auction between the new electricity suppliers.

The third option is to simply do nothing. You will automatically stay with the current supplier at the same tariff.

There is a final complication, as there is a new tariff being brought in known as the ‘Tarifa Social’. It is only relevant where there is a contracted power supply below three kilowatts, and has two conditions: 1. The property must be a main residence and 2. the property must be fitted with a power limiter. Apparently what was previously known as the ‘nocturnal tariff’ will apply in such cases upon application.

These changes, will no doubt be a confusing time for consumers and most consumer associations are advising members to wait and see what offers are available, as there is no deadline on when to make a choice on electricity supplier.  

The electricity Bill - For the average vacation dwelling, 3,3 kW should be sufficient and almost all foreign owners will have a tarif of 2.0 for domestic use up to 15 kW. There is also another tariff 3.0 for more than 15 kW, mostly used for industry and commerce. On the bill the tariff may be specified as "Potencia contratada".

Consumption - The kilowatt hours consumed will be multiplied with the price of the electricity in the tariff chosen. If you are in tariff group 2.0 you will be charged 0,086 Euro per kWh.

Tax - Electricity tax is currently 4,864% on standing charge and consumption.

Meter – The meter is leased and the charge is 0,66 Euro per month, but may vary between companies.

VAT or IVA – Is currently charged at 16% VAT on all the above, including the electricity tax.

Every dwelling has its own electricity meter, and if you cannot read the meter through the window, you have the right to get a key to the box to enable you to check the consumption regularly. 

The best system for payment, as always, is with a standing order from your bank.

Always make sure that there is enough money in your account to cover the electricity and all other bills, as the Spanish system allows for the electricity supply to be cut off after none payment, without further correspondence, and reconnection can be a protracted process.

In some remote areas there is no mains electricity or a limited service is available. In these areas, households can either install a generator, and/or Solar power and battery systems and the internet is a good source of information. Solar power should also be considered by those wanting to lead a more eco lifestyle, as Spain has plenty of free sun shine and systems exist for water heating, electricity generating and battery storage. However initial installation costs can be prohibitive.

The standard electricity supply in Spain is 230 Volts however, as in other countries, this can vary, but in Spain the variance is reported as being wider than other countries.

Spain uses the standard European two-pin plug and socket, and is without a plug fuse. All domestic goods sold in Spain will have a compatible two pin sealed plug attached.

For appliances with foreign plugs, adapters can be bought in most DIY and hardware stores. Ideally the plug should be changed for a Spanish plug, and bear in mind that if the fuse in a UK plug blows, you will be unlikely to easily find a replacement. It should also be remembered that adaptors are not designed for continuous use and are intended to be a temporary solution.

Power Cuts - As stated before, Spain operates a power rating system (potencia) where a household calculates its average usage and the supply received is based on this. Although this allows the property owner to accept the minimum supply of 3.3kw, if too many appliances are used at once, the result can be an interruption to the supply.

A power surge protector is recommended to protect appliances such as computers, TVs, DVD players, satellite receivers, etc, from damage when the power supply is interrupted.

It is also advisable to install a battery backup system for computers, so that a controlled close down can be carried out, so that unsaved data can be correctly stored, and apparently electrical interruptions, particularly those of less than a second, can lead to damage of the hard drive.

2:LOCAL VEHICLE TAX

 

In common with many countries, all vehicles on Spanish plates, have to be taxed and insured to be road legal. Where the situation is different to other countries, is not that the cost of road tax varies, depending on the size and type of vehicle, but varies depending on where the vehicle is registered.

As an example for a private car, the basic tax ranges from 13 Euro per year up to 90 Euro, increased by certain percentages in those municipalities with a greater number of inhabitants. 

 

This is why the car hire companies have their vehicles registered in one of the many small inland mountain villages where the number of residents is small.

 

The best way to pay the tax is via a direct debit from the bank. This payment is easy to set up via the Suma office, and every town will have a one. Suma is a government agency, charged with the collection of taxes, be they personal, commercial or for vehicles, council, etc.

 

Documents required are the vehicle details, bank account details, name address and proof of residence. It will be necessary to take the Suma documents to the bank for the direct debit to be set up, and once completed, payment will occur automatically every year, and the Suma office will only need to be visited if circumstances change.

 

3: THE SPANISH ROYAL FAMILY

 

 

After the death of the previous Head of State, Francisco Franco, Juan Carlos was proclaimed King on November 22nd, 1975. In his first message to the nation he expressed the basic ideas of his reign, to restore democracy and become King of all Spaniards, without exception.

 

His Majesty was born on January 5th, 1938 in Rome, where the Royal Family was living at that time, having had to leave Spain when the Republic was proclaimed in 1931. His father, Don Juan de Borbon y Battenberg, Count of Barcelona and Head of the Spanish Royal Household ever since King Alfonso XIII had relinquished this status, and his mother, Dona Maria de las Mercedes de Borbon y Orleans.

At the express wish of his father, he was educated in Spain, which he visited for the first time at the age of ten.

On May 14th, 1962, he married Princess Sofia of Greece, the eldest daughter of King Paul I and Queen Federika. Her Majesty was born in Athens on November 2nd, 1938. Her family belongs to one of the oldest Royal Houses in Europe and is related to the Czars of Russia, the German Emperors and Queen Victoria.

She spent part of her childhood in Egypt and South Africa, as her family was obliged to go into exile during the Second World War. She returned to her country in 1946, completed her education at the prestigious German boarding school of Schloss Salem and, having returned to Athens, specialized in pediatrics, music and archaeology. She took part as a reserve for the Greek sailing team in the 1960 Olympic Games in Rome.

 

In addition to taking part in institutional events, the Queen devotes a great deal of attention to social and charity activities. She is the executive president of the Queen Sofia Foundation, which in 1993 has sent the major part of its funds to help Bosnia, and honorary president of the Royal Board on Education and Care of Handicapped Persons and the Foundation for Aid for Drug Addicts. She takes special interest in this latter problem, taking part personally in conferences and meetings on the subject, both in Spain and abroad.

Her help for the underprivileged is not confined to resolving specific situations, but also extends to progress in the field of research and to encouraging initiatives and cooperation agreements, designed to prevent them from arising or to palliate their effects.

With regards to culture, Queen Sofia's fondness for music is well known. The Queen is an honorary member of the San Fernando Academy of Fine Arts, and holds an honorary doctorate from the University of Valladolid and, together with the King, from Cambridge.

In 1963 the first of their three children, Princess Elena, was born, followed, two years later, by Princess Cristina and finally, in 1968, by Prince Felipe, who as heir to the Spanish throne, bears the official titles of Prince of Asturias, Prince of Viana, Prince of Girona, Duke of Montblanc, Count of Cervera, and Lord of Balaquer.

The transition to democracy, under the guidance of a new Government, began with the Law on Political Reform in 1976. In May 1977, the Count of Barcelona transferred to the King his dynasty rights and his position as head of the Spanish Royal Household, at a ceremony which confirmed the fulfilment of the role incumbent on the Crown in the restoration of democracy. A month later the first democratic election since 1936 was held and the new parliament drafted the text of the current Constitution, approved in a referendum on December 6th, 1978.

The Constitution establishes as the form of government of the Spanish State that of a parliamentary monarchy, in which the King is the arbiter and overseer of the proper working of the institutions. By giving the royal assent to this Constitution, King Juan Carlos expressly proclaimed his firm intention to abide by it and serve it. In fact, it was the actions of the Monarch that saved the Constitution and democracy during the night of February 23rd. 1981, when the constitutional powers had been retained in the Parliament building in an attempted coup.

As a convinced European, and a winner of the Charlemagne Award in 1982, Juan Carlos delivers insistent reminders of Spain’s European calling throughout its history. The importance of the European union in the contemporary world, and in particular in the areas which are most akin to it, including Latin America, has been stressed by the King in many messages.

The King's two daughters hold the title Infanta Princess of Spain, with the style Her Royal Highness. Their husbands hold no title of their own but are styled His Excellency The Duke of (wife's ducal title). Their children hold the style of His or Her Excellency and the rank of a Grandee of Spain.

 

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.