Expat Life Spain

Spanish economy remains in recession

Expat Life — Thu, 11 Feb 2010 12:15:35 +0000

Despite recent reports that Spain itself was feeling “bullish” about the recession, it seems that expats living in Spain would do well to not get their hopes up and to continue to expect the recession to continue well into 2010.

The Spanish economy is struggling to catch up with the European monetary union.

The Spanish economy shrank by 0.1% in the last three months of 2009, making it the last major economy still in recession.

Europe’s fifth-largest economy has the highest rate of unemployment in the eurozone.

INE, the national statistics agency, said the country’s gross domestic product had contracted by 3.1% compared with the same period a year before.

Tax breaks for offshore pensions

Expat Life — Wed, 10 Feb 2010 12:35:25 +0000

Many expats living in Spain moved out to enjoy their retirement in the sun, relaxing and enjoying their hard earned pensions. I suspect that for many the concept of a offshore account never really occurred to them, perceiving it to be something for the rich or dodgy.

However a growing number of British expats in Spain are moving their pensions offshore after reform in 2006 allowed long-term expatriates to set up the Qualifying Registered Overseas Pension Scheme (QROPS).

A key attraction of QROPs is that there is no obligation to buy an annuity, although contributions do not enjoy UK tax relief where the taxpayer is resident outside Britain.

In certain circumstances British expats can borrow from their QROP pension pot, a useful facility when credit is in short supply.

If a pension is received from a UK source, then it is generally liable to UK income tax. However, in many cases, that income can be exempted from UK tax entirely if the pensioner lives in a country which has a double taxation agreement with the UK.

Iberia to charge for any second suitcase from March 1

Expat Life — Tue, 02 Feb 2010 18:38:25 +0000

Not good news for expats and regular travelers in Spain who travel tourist class with Iberia as they have announced they will be charging for second suitcases checked into the hold from 1st March 2010, in an attempt to lighten the planes, save fuel costs and speed up operations ….. no mention of making more money or reducing costs to passengers you note!

The total free weight allowance per passenger remains unchanged at 23 kilos, but that must now be in a single package.
Any second suitcase will be charged at 50 € when booked online and 60 € when booked at the airport, but this will allow another 23 kilos of baggage to be carried.
The new system will affect all Tourist Class passengers who purchase a ticket after March 1.

Passengers in Business and other classes are not affected as luggage charges there are already up to 30 kilos in one bag and 46 kilos per passenger in two bags.

Mark of quality for British schools overseas

Expat Life — Tue, 02 Feb 2010 09:01:15 +0000

One issue high on every expats priority list when moving to live in Spain, when they have children, is the quality of the education that they will receive so the news that a new scheme will allow overseas schools to be accredited by the British Government for the first time will surely be pleaseing to note.

Under the current system, international schools that describe themselves as “British” do not receive any formal recognition or support from the government.

In practical terms, this means it is often very difficult for parents to identify which schools offer an education consistent with British standards.

Parents who are currently seeking to enroll their children in “British” overseas schools are advised to check whether schools are accredited by external British bodies such as COBIS or the New England Association of Schools and Colleges, as well as country-specific organisations such as the National Association of British Schools in Spain.

Many of these schools, such as those which are affiliated to COBIS, are accredited by British inspection systems and already have inspection reports available online and mean that children educated in these schools will in be better aligned to the educational system in the UK should they return for further education.

Applications from inspection bodies for involvement in the scheme have already been submitted, and are in the process of being reviewed. It has not yet been confirmed however when the project will officially begin.

Diana Johnson, Parliamentary Under Secretary of State for Schools, said: “We believe these arrangements will allow parents access to good quality, comparable and consistent school inspection reports that will set out the extent to which participating British institutions overseas measure up to a rigorous set of standards rooted in the British education system.

British Expats In Spain Heading Back To UK

Expat Life — Mon, 01 Feb 2010 12:29:15 +0000

For many expats living in Spain it appears that the distressed property market, high levels of unemployment in Spain, and the weak pound have combined to shatter many a dream of enjoying the sunshine, culture and traditions of Spain. A recent survey reported that almost 75% of British expats in Spain are considering moving back to the UK.

Of the one million Britons living in Spain some 74 per cent revealed that repatriation is now a distinct possibility, according to a study undertaken by Moneycorp.

Some 37 per cent of those surveyed admitted that they were already looking into returning to the British Isles.

The house market crash has seen the value of homes on the Costa del Sol crash to below 65 per cent their original asking price

British property owners have been hit particulary hard with rental yeilds dropping, and harder to come by, jobs harder to find, and costs going up in real terms for many pensioners.

Expats Rejoice: Prices Still 100€ Per Month Cheaper In Spain

Expat Life — Thu, 28 Jan 2010 08:06:40 +0000

Despite the current exchange rate which has made Spain seem much more expensive for many expats living in Spain, there is some good, if not surprising, news which despite Which? saying recently that Spain may no longer be such great value, shows that many goods in Spain are cheaper than their equivalent in the UK.

On a typical monthly shop expats in Spain can save up to 100€ on a household shop, and petrol is cheaper at 1.09€ a litre in Spain compared to 1.26€ in the UK

When it comes to the basic essentials and our favourite vices Spain has emerged as the land of plenty at affordable prices with a week’s worth of beer, petrol and toilet paper 20€ cheaper in Spain compared to the UK.

Other price comaprisons (Spain to UK)

Eggs: 0.95¢ to 1.64€
San Miguel: 1.50€ to 2.28€
Toilet Paper: 0.72¢ to 2.31€

Britons more likely to travel as recession ends

Expat Life — Wed, 27 Jan 2010 08:36:26 +0000

Although many are warning that Britain is at risk of plunging back into recession based on the remarkably low growth figures (0.1%) compared to an expected 0.4%, the 18 month recession has officially ended and early indications are that it is good news for the travel industry, and therefore one hopes for expats living in Spain hoping to see the tourism related business that so many depend on for their income pick up.

Nearly a fifth of British travellers say they are more likely to go on holiday in the coming year than they were six months ago

“This is undoubtedly good news for the industry,” said Sean Tipton, communications officer for ABTA, the Travel Association. “It’s difficult to forecast what will happen in the summer – and we are unlikely to see a record-breaking year – but these are good signs.”

In addition to more travel it is to be hoped that the average spending money taken on holidays rises from the current £295 per person, per week, which is down from £312 6 months ago.

Spain Recession To Continue In 2010: IMF Say

Expat Life — Tue, 26 Jan 2010 15:02:45 +0000

On the same day as the UK announced that it has formely exited the recession, the International Monetary Fund (IMF) have confirmed what many have been saying, that Spain will remain in recession throughout 2010, with low growth forecast for 2011.

The International Monetary Fund, IMF, has released its latest forecast for the Spanish economy and although it has improved its number by 0.1% it still thinks Spain will be the only developed country to show no growth in 2010, expecting it to shrink by 0.6%. The forecast matches that from the OECD, the Organisation for Economy Cooperation and Development.

There is increasing concern in particular over the level of property related debt in the construction industry that is currently estiated at over 320€ billion.

To put this into context the Eurozone is forecast to grow at 1% and the world economy by just under 4%

Twitter To Be Used To Sell Spain

Expat Life — Mon, 25 Jan 2010 17:55:40 +0000

Not before time many will be saying, but it does seem that Spain is finally waking up to the idea of using the internet, and in particular social networking sites like Twitter and Facebook to promote the country.

Turespaña recently presented a new online strategy at Fitur to ustiise the popular social networking sites to allow Spaniards to contact foreigners and promote Spain.

The idea is that Spaniards “sell” the hidden corners of Spain as well as the best kept secrets of gastronomy or culture to people around the world effectively becoming the guidebook that guides travellers to the real Spain.

Travel Woes For Expats Flying To Spain This Easter

Expat Life — Mon, 25 Jan 2010 13:54:02 +0000

Spanish Air Traffic Controllers are threatening to disrupt flight plans for thousands of expats living in Spain either wanting to fly back to the UK to spend time with their families and take advantage of the current exchange rates, or wanting to fly out to their holiday homes and get some sunshine over the Easter break.

The dispute continues over staffing levels and overtime with the Minister of Development wanting to cap the excessive wages resulting from the large amounts of overtime.

Minister for Development, José Blanco, wants to see a 40% reduction in their take home pay. He says their wages need to fall to 200,000 €.

The Air Traffic Controllers have said

If in the forthcoming months a similar situation to last Christmas arises, it will not be because we are carrying out any sort of labour pressure, but because of the inability of the Sr. Minister of Development and the directors of AENA, (The Spanish Airports Authority), to face up to an adequate process of negotiation