Frequently Asked Questions when buying a Spanish Villa

The Answers

Approximate running costs per year

• Rates: £350.00 Annually approx
• Water Rates: £180.00 Annually
• Electricity £360.00 Annually
• Gas (Per bottle) £5.00 if needed
• Pool Service if required £400.00 Annually

Approximate Total…………………£1,290.00

The running cost in Spain vary depending on where you live and the type of property i.e.: Villa or Apartment. Generally in this part of Spain, people spend in the region of £700 per annum, this is also dependant on whether or not there is a Swimming Pool, there is also a communal charge if it is a Apartment, sometimes sport facilities, are provided with the apartment complex.

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Living Costs in Spain

The living costs in Spain are a lot lower than UK. It is often cheaper to eat in Restaurants and Tapas Bars, most Restaurants have “Menu of the Day” or “Menu of the Evening,” these are three course meals including a bottle of wine, this cost around £7.00. The Spanish delicacy is Fishmeals, mainly Paella, which is very tasty and healthy; the majority of Restaurants and Bars now sell English Meals i.e. meat, poultry, Chips, and Vegetables.

In this part of Spain, Mazarron is famous for its Tomatoes, Olives and a good many more vegetables and fruit, all at low costs.

Meat and Poultry

Cuts of meat are well trimmed then weighed, therefore making it cheaper per pound; however, meat and poultry costs are similar cost to the UK.

Alcohol & Tobacco

Alcohol and tobacco products are approximately half price in Spain.

Clothing and Shoes

There are a large number of retail stores in the region of Murcia and Cartagena, these are short distances away from Mazarron, the clothes fashion is the same as most modern countries, the local shops of course are very good prices due to the local Spaniards not wishing to pay high prices for anything they purchase
The local Puerto De Mazarron has a wide range of Clothes, shoes, pottery, jewellers, cosmetic, spectacle and electrical shops and a good many more, all with very good prices.

There are a good many more reasons for living in Spain, thousands of people feel they have a better quality of life, with the constant sunshine, low cost of living, and the Mediterranean diet, and the health service is not stretched therefore giving an excellent service with a better reputation than the UK.

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Pension

Becoming a resident in Spain does not affect your pension, this can be paid directly into your Spanish Bank Account.

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Health

Due to the climate in this part of Spain coupled with the relaxed way of life and the Mediterranean diet, it is without doubt, a great composition for people looking to retire in the sun.

Spain’s membership of the EU for retired people (60 / 65) are eligible for free health care.
Most Doctors within the Medical Centre speak English, the Chemists stock the most regular Medication and Antibiotics ( of which can be purchased over the counter for people who are not of retirement age).

Of course, within most countries, Private Health Care is available for little cost.

In addition, it is fact that the Mediterranean diet contributes to good health and longer living, the diet in this part of Spain is mainly Fish, also freshly grown Fruit, and their Home made Olive Oil.

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Residence

It is very easy to become resident in Spain, this is done through the registration system at the “Notary Publica” a Government Building, the documents required for this have to be Certified- “Rubber Stamped” a Residence card is then issued. (Please see Application for Residencia (EU Member)

Application For Residencia (EU Member)

• 2 Passport photographs, when you have been accepted as resident
• Passport and 2 certified copies
• NIE and 1 copy
• Certificate from Town Hall (Registration-empadronamiento)
• Application Form signed with personal details completed

Due to the EU Member ship, it is now less complicated to become Resident in Spain. After obtaining the required documents and the registration, for the Residencie. The Identity card is issued complete with fingerprint and photograph.

Due to the requirement of the Spainish Language for the application of residence, it is normal to appoint an interpreter in order to carry out the procedure quickly and for a very small cost.

To Obtain NIE Number

• Two passport copies (Fax or Emailed)
• Bank account opened in Spain
• Signed application form with personal details
• Signed Spanish application form for the Police Station

The Police ask what reason you want NIE N°, so if you have not yet decided upon what property you whish to purchase or are renting then you can buy a house give Costa Cálida Property Services S.L. as the address.

The NIE N° is not a legal requirement it is gust a means of registering yourself for tax purposes, it is similar to the U.K. National Insurance Number but it is non Spanish Nationals. The banks send a form once year for you complete asking if you are living in Spain you would then be required to give them NIE N° if you have given them a Spanish address.

Why Should I Obtain A NIE Number?

To obtain a NIE N° takes about three weeks and can be applied for when you have chosen a property. If you do not have a NIE N° you can not complete the purchase of a resale property, have mortgage or loan from a Spanish bank, buy a car, have your name registered with any utility company or take out any insurance policies.

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Banking

The opening of a bank account is quick and easy all you require is your passport and approximately £10 to deposit- that is it!

Mortgage Facility

1. Copies of personal current account bank statements, covering a three-month period.
2. Status enquiry form from UK bank.
3. Breakdown of personal assets and liabilities.
4. Confirmation that Tax Affairs are up to date.
5. Written confirmation from employer of current income.
6. Length of employment.
7. Self employment individuals – confirmation from your accountant of income drawn in past 2 years.
8. 2 copies of current passport and NIF number-(Spanish Identification).
9. Valuation of property to be purchased, this will be arranged by the bank.
10. Completed application form.

Basic Terms For Mortgages

1- Amount of Mortgage: The Bank will advance up to 80% of the valuation. The facility will be made available in Euros. .

2- Repayment Term: The maximum repayment period is up to 30 years or shorter (depending on age of mortgage holder).

3- Interest Rates: The interest rate is 3.25 to 3.5%.

4- Arrangement Fee & Other Costs: Arrangement fee is 2% of the mortgage amount. If you decide to repay the mortgage early, you will be subject to an early repayment penalty of 1% based on the total capital sum redeemed.

The cost of your Solicitor, notary registration and taxes on the property (IVA) on the mortgage, are between 8% and 9% depending on the original sale price on the escritura (deeds).

This document does not form any contract and is subject to change the terms and conditions quoted are for indication purposes.

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Typical Rental Charges on Camposol

These are dependant on TV / No TV plus very well equipped etc.

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