Spain is a very popular destination for Britons relocating and is it any wonder why? A 2012 study by The Guardian found that nearly 400,000 UK citizens live in the country for its sun, sea and sand as well as its wealth of job opportunities.
Have you ever considered moving there to experience a new lease of life and to indulge in its rich art, culture and history? How much will it cost? Obviously there are expenses which need to be spent such as shipping and flight tickets but here is an expert guide to help you arrange your finances.
Personal Income Tax
Spain has a Personal Income Tax which is levied on an individual’s income. You will become accountable for income tax liability or the income that you get in the country. So any money that you earn from business in Spain, on a Spanish property, or from money deposited in a Spanish bank account, will have tax that needs to be paid.
Just as the UK has a taxman (HM Revenue & Customs) that is in charge of tax regulation, so does Spain. The Spanish Tax Agency will penalise you; so if you earn more than €22,000.00 a year, you must file an income tax return.
Many countries are suffering tough economic times at the moment and Spain is no different. It does have the 14th largest economy in the world but it is undergoing some hardship similar to Britain. Its unemployment rate is at 20.8% and the labour force is 23.13 million. However, wherever you relocate there will be some sort of financial trouble so research your job industry and find out how it is doing.
The most cost-effective transportation method to move to Spain is sea freight. Obviously you can still transport your belongings by land or air but sea freight is the cheapest option. When planning your budget consider the packing materials, the hired removal company, shipping insurance, and storage costs.
As a guide, a shared service for an average 2 – 3 bed family property £2,500 – £3,700 + VAT. Direct services for similar are between £4,000 – £7,500 + VAT.
The property market is in limbo at the moment like the economy, so make sure you look around and bargain with property owners to get the best deal. The fall in property prices gives scope for negotiations. Please note it is ideal to rent temporary accommodation just until you settle before buying a property.
You will become eligible to receive retirement, maternity and unemployment benefits as the benefits system is similar to the UK in terms of health, social and security.
Now you know the kind of costs that are involved with moving to Spain, the only thing left to do is to get a quote!