• Top 10 investment properties
• Spanish mortgages - a glossary of terms
• New rules on UK state pensions
• 50 Essential property secrets to buying in Spain
• Cunning off-plan
• What is a stakeholder pension (SIPPS)?
• Guide to buying a property in Spain
• Why buy a property in Spain?
• Buying property in the Valencian autonomous community
• Do's and don't when buying a property in Spain
• Moving to Spain
• An investment property in Mauritius

News: 28/07/2005

New rules regarding the options allowing you to defer your state pension came into force in April. Those who choose to claim their state pension late can now take a lump sum payment, or receive higher weekly pension payments.

The new choices mean people:

• can get more extra State Pension for life when they do finally claim; or
• in certain circumstances, can chose a one-off taxable lump sum payment; and
• can put off claiming for as long as they want to earn extra State Pension or build up a lump sum payment

For the first time, people who choose to defer their State Pension can receive a one-off taxable lump sum payment instead of a weekly increase, when they finally claim. To be eligible for the lump sum option, you must defer for at least 12 consecutive months. Your lump sum will be based on the amount of weekly State Pension you would have received with an interest rate at 2% above the Bank of England base rate.

If you choose a lump sum, your weekly State Pension will then be paid at the normal rate. To be eligible for extra weekly State Pension people must defer for at least five weeks. Your weekly pension will increase by 1% for every five weeks you do not claim (before 6 April the increase worked out at 1% for every 7 weeks).
The maximum time limit of 5 years that you can put off claiming your State Pension to earn extra State Pension has been removed which means you can now put off claiming State Pension for as long as you want and be able to earn extra State Pension, or a lump sum.

Examples: A person who deferred a state pension entitlement (including Basic State Pension and State Second Pension) of £105 for anytime over one year could get a lump sum of:

£5,646 if they defer for one year
£11,673 if they defer for two years
£32,306 if they defer for five years

Someone on the same rate of State Pension who chooses to receive an increased weekly amount added to their state pension for life instead of the lump sum could receive a total weekly pension of:

£110.90 if they defer for one year
£121.80 if they defer for two years
£154.60 if they defer for five years

For more information please contact:
International Pension Centre: +44 191 21 82828
Textphone: +44 191 21 87280
Or visit the Pension Service Website: http://www.thepensionservice.gov.uk

Additional Security Fee: This is sometimes called a "mortgage indemnity guarantee policy" and is paid to take out an insurance policy, which will reimburse the mortgage lender if the mortgage borrower defaults on their payments for any reason. The mortgage lender normally starts the insurance policy at the same time the mortgage is agreed but the mortgage borrower has to pay the premium.

Adverse Credit: This is also known as "bad credit" and is a term used when a person has had credit problems in the past. These problems could include previous mortgage loans, which have been unpaid, unpaid debt consolidation loans or credit card arrears. They could also include CCJ's or bankruptcy.

Agricultural Restriction: This is a freehold covenant, which restricts the occupancy of a certain property to people engaged in agriculture.

Apportionment: This is sharing the responsibility for property tax and water charges etc between the buyer and the seller of a property.

APR: This is an interest rate reflecting the cost of a mortgage as a yearly rate. Using the APR, borrowers can compare different mortgages more easily.

Arrangement fee: This is a fee the borrower pays to the mortgage lender when the mortgage is arranged. This fee is normally only required when taking out a fixed rate, discounted or cash back mortgage.

Arrears: This is the term used to describe a situation where someone has fallen behind with their payments.

Assignment: This is a document transferring the ownership of a property from one person to another.

ASU: This stands for "Accident, Sickness and Unemployment" and is an insurance policy, which will pay the mortgage for the borrower if they are unable to earn their wages normally due to an accident, sickness or unemployment.

Auction: This is a public sale, where the property is sold to the highest bidder. If you purchase a property via an auction you should ensure that all of the necessary valuations and land searches have been completed prior to bidding as you will be required to sign a contract as soon as you win the auction.

Authority to Inspect the Register: This is a document signed by the registered owner of a property to allow another party to access information from the register of a property.

Bailiff: A person appointed by the Courts to take possession of a person's goods if they fail to keep up the payments of a loan or mortgage.

Bankers Draft: This looks like a cheque, however, it is in fact a cash payment as there is no clearing time when it is presented for payment. The purpose of it is to avoid carrying around large sums of cash and anyone can obtain a bankers draft from their bank.

Properties in Spain

Bridging Loan: This is a loan designed to allow a person to purchase a new property before their old property has been sold.

Brokers Fee: This is a fee, which could be charged by a mortgage broker in return for finding a person the best mortgage for their needs.

Building Society: This is an organisation, which can lend you money to purchase a property or re-mortgage a property

Buy to Let: This is a term used to describe a situation where a person purchases a property specifically to rent it out to a tenant.

Calculator: Mortgage calculators are designed to work out how much a person could afford to borrow after they have entered details of their income and outgoings.

Capital and Interest: This means that your monthly payments are made against both the original amount you borrowed together with the interest accumulating on that debt.

Capped Rate: This is an arrangement where your mortgage rates will not rise above a specified amount regardless of how high interest rates rise.

Cash Back: This is a one-off payment you may receive when initially taking out your mortgage.

Cash Buyer: This is the term used to describe a person who dies not require a mortgage to buy a property and does not need to rely on the sale of another property to fund their purchase.

CCJ: This stands for "County Court Judgment", which is a decision made by the County Court regarding unpaid debts a person has.

Chattels: This means items, which can be transported such as furniture or other personal possessions.

Completion: This is a term to describe a situation when the sale of a property is finalised and the new buyer legally owns the house.

Contract: This is a legally binding agreement.

Conveyancing: This is the legal process of buying or selling a property.

Covenant: This means something, which has been promised within a deed.

Credit Scoring: This is how lenders decide whether or not they will offer a mortgage to a person applying.

Credit Search: This is a search of your past and present debts to ascertain if you have a bad credit record.

Debt Consolidation: If you incorporate other debts such as car finance or credit card debts into your mortgage, you will only have one monthly payment to make and the interest rate you are charged is likely to be lower.

Deed: This is a legal document, which is signed, sealed and delivered. The transfer of a property can only be made by deed.

Dependants: The term used to describe a person who relies on another person financially.

Deposit: This is the amount of money you pay in cash towards the purchase of a property.

Disbursements: This is the name for the expenses incurred by the solicitor, such as fees for searches etc.

Discount Rate: This is a term to describe an interest rate, which is set lower than the standard rate.

Early Redemption Charge: Within some mortgage agreements there is an early redemption charge mentioned. This means that if you pay off your mortgage early or transfer the mortgage to a different lender, you will be responsible for a charge.

Endowment: If a person opts for an interest only mortgage, they will also need to pay towards an endowment, which is an insurance policy designed to mature over the years and pay off the majority of the mortgage at the end of the contract.

Looking for great deals on inland properties in Spain

Equity: If you deduct the amount of your mortgage from the sum your property has been valued at, the remaining figure is the amount of home equity you have.

Equity Release: This is a scheme whereby the lender awards the homeowner a lump sum of money in exchange for taking the rights to a percentage of the value of their home.

Exchange of contracts: This is when the buyer and seller of the property sign their contracts and the sale becomes legally binding.

First Time Buyer: A person who does not already own a property, therefore, is not part of a chain.

Fixed Rate: This is when the interest rate is agreed at the beginning of the mortgage and guaranteed not to rise or fall for a set amount of years.

Fixtures: An item that is attached to the property.

Flexible Mortgage: This is a type of mortgage where the interest rate is variable, however it is calculated daily instead of annually therefore, every payment made affects the interest charged on the outstanding balance.

Gazumping: This is when someone selling a property accepts an offer and then accepts a second, higher offer before the contracts are exchanged.

Gross Income: Your total income before any taxes or other expenses are deducted.

Guarantor: If a guarantor is named on a mortgage agreement, they are personally responsible for payment of the mortgage if the borrower does not keep up the repayments.

High Street Lenders: Banks and Building Societies, typically classified as “High Street Lenders” as their branches were mainly situated on the High Street of a town in the past.

Home Loans: The term home loan is another way of describing a mortgage. This is a way of financing a purchase of property.

IFA: This stands for Independent Financial Advisor. An IFA should be able to give advice about all mortgages available and not have any personal financial interest in selling one mortgage over another.

Income Multiples: The size of the mortgage you are offered will normally be calculated by multiplying your annual salary approximately 3 times.

Income Protection Insurance: This is an insurance policy designed to pay your mortgage if you cannot work due to an accident, illness or unemployment.

Interest only mortgage: With this type of mortgage, you will pay the interest on the total figure only. You would have to pay the lump sum outstanding at the end of the contract.

Intermediary: This is an advisor or broker who will find the best mortgage for a particular client.

Joint Mortgage: A mortgage in the name of two people rather than one.

Land Registry Fee: This is a fee, which needs to be paid to the Land Registry to register ownership of a piece of land.

Licensed Conveyancer: This is a person who specialises in selling and purchasing real estate. You could opt to use the services of a Licensed Conveyancer instead of a Solicitor.

Life Assurance: This is an insurance policy, which would pay out a lump sum or pay off a person's mortgage if they died.

Local Authority Search: This is a search conducted by the Solicitor working for the potential buyer to ensure there is now building work scheduled close to the property in the future.

MIG: This stands for "Mortgage Indemnity Guarantee". It is an insurance policy paid for by the borrower to protect the lender in case they cannot keep up the repayments of their mortgage.

Mortgage: A loan to purchase a property, with the property used as security in case the payments are not continually met. Mortgages can also be known as real estate loan or home financing.

Get a free Spanish property buyer's checklist

Mortgage Calculator: A system designed to calculate how much a person can afford to borrow after they enter their salary details and outgoings.

Mortgage Incentives: These are bonuses such as free valuations or discounted rates, which are designed to encourage a person to choose one particular mortgage lender over another.

MPPI: This stands for "Mortgage Payment Protection Insurance" and is an insurance policy taken out to pay the mortgage payments if the borrower cannot work due to an accident, illness or redundancy.

Negative Equity: This is a term used to describe a situation where the borrower owes more money to their mortgage lender than their property is worth.

Net: The term net, means a sum of money after tax has been deducted. For example, your net monthly wages would be the total amount you are paid after tax has already been deducted.

One Hundred Percent Mortgage (100%): This is the term used to describe a mortgage, which is taken out to pay the full purchase price of the property. With a one hundred percent mortgage, the purchaser does not need to pay any deposit.

Overpayment: If you pay more than you are required to against your mortgage, you will pay less interest over the mortgage period and your loan will be paid off earlier.

Payment Holiday: This is a period of time where borrowers can opt not to make any payments against their mortgage. This would normally only be allowed if they had overpaid previously.

Portability: This is a term used to describe a mortgage, which you can transfer to a new property if you decide to move house.

Premium: The word "premium" used when discussing insurances or mortgages means the regular monthly payment you need to make.

Quotations: When taking out a mortgage, a person should research a number of different options and obtain quotations from different lenders to ascertain which mortgage would suit them best.

Redemption: This means to pay off a mortgage completely either at the end of the agreement, when you have a lump sum of money to use or when you refinance your home.

Redemption Penalties: As part of your mortgage agreement, you may be responsible for a charge if you pay off your mortgage earlier than agreed.

Re-Mortgage: If you are not intending to move homes but want to choose a different mortgage lender, you can pay off your original mortgage by taking out a new mortgage. This is also known as refinancing.

Repossession: If the borrow fails to keep up their mortgage payments, the lender can repossess the house and sell it at auction.

Retention: This is a term used to describe a situation where a lender holds back some of the money from the mortgage until certain conditions are met such as repairs or improvements which are considered essential.

Searches: During the process of purchasing a new home, many different searches may need to be carried out by your solicitor such as a Land Registry Search or Local Authority Search.

Self Certified: This is when a person who cannot provide proof of their income via pay slips or accounts must make a declaration stating exactly how much they earn.

Stamp Duty: This is a tax, which needs to be paid by the person purchasing the property. If the property is under £60,000.00 no payment is required, however, for properties selling at between £60,000.00 and £250,000.00 1% of the purchase price needs to be paid. If the property is valued at between £250,000.00 and £500,000.00, 3% applies and for properties over £500,00.00, the charge is 4%.

Structural Survey: A surveyor carries this survey out. They will check the property for any faults and report them.

Standard Variable Rate: With a variable rate mortgage, your payments would rise and fall depending on the level of the interest rates at that time.

Standing Order: This is an arrangement you can set up with your bank to pay a regular amount of money into another person's account on a regular basis.

Surrender: In mortgage terms, this means to cash in an endowment policy early to raise funds.

Term: This is the amount of years; you take out your mortgage for.

Term Assurance: This is an insurance policy taken out by the borrower at the time of taking out the mortgage, which would pay the mortgage off completely if they were to die before the end of the contract.

Terminal Bonus: This is the sum of money paid out when an endowment matures.

Tie in Period: When taking out a mortgage, the lender may specify a number of years that you have to stay with them to avoid paying any penalty charges.

Title Deeds: These are documents which show who legally owns a property.

Transfer Deeds: These are documents which when signed; transfer the legal ownership of a property to another person.

Unencumbered: This is a term to describe a situation where a person owns a property outright without having any mortgage attached to it.

Unmortgagable: This is a term used to describe a property for which no lender will supply a mortgage.

Unregistered Land: Land, which is not yet mentioned within the records, held on the HM Land Registry Database.

Investment in a property in Spain

Valuation: An inspection of the property is carried out to verify how much it is worth.

Valuation Fee: This is a fee, which needs to be paid by the borrower to fund the valuation.

Variable Rate: If you take out a mortgage with a variable rate, your payments may raise and fall each month depending on the interest rates at that time.

Verification Of Employment: A lender may ask a person to supply verification of their employment in the form of pay slips.

Luxury Spanish properties

We've put together the definitive guide to buying safely in Spain. You'll sail through the process with our experts' hints, tips and soundbites.

Content provided by Spanish Homes Magazine.

Keep an eye on the exchange rate
"A difference of even one percentage point can make a difference of thousands of pounds overall." The Horizon Property Group SL
"Exchange rates are shifting all the time, so if you are buying property in a foreign currency like the Euro, this can mean the price of your property will increase or decrease as the currency changes." Jon Green, Headlands International

Shop around for your currency
"Many specialist currency dealers offer better rates than the high street banks." Chris Mercer, Mercers Ltd

Learn Spanish
"Even basic language skills will enhance your enjoyment of the country and its people." Chris Mercer, Mercers Ltd

"Don't think you can understand certain phrases that sound like the English equivalent, because usually they mean something completely different. For example, ‘estoy constipado' means ‘I have a cold' and ‘estoy embarazado' does not mean ‘I am embarrassed' but ‘I am pregnant'. Useful to know these things when making polite conversation!" Val Hawdon, C & S Homes Overseas

Get your mortgage approved before you go to look at any property in Spain
"Whether you intend to borrow in the UK or abroad, it is a good idea to get at least a preliminary confirmation that you will be able to borrow what you need before you go looking at properties. You know how much you have to spend, and being an instant buyer can also give you a tactical advantage when bidding for, or negotiating the price of, the property." John Howell and Co Solicitors

Be absolutely sure that you can pay the balance on the agreed date
"The contract will normally contain a penalty clause that states that if the balance outstanding is not paid by the agreed date, the purchaser will lose the amount paid and the vendor is free to offer the property for sale again." Troy Holland, Spanish Property Guide

Engage a good, registered estate agent
"Looking for a property is hot and tiring work, so engage a good, registered estate agent to do the donkey work for you. When you get to the stage of buying, a good estate agent will help you transfer money from the UK, open bank accounts, arrange mortgages and apply for NIEs (no longer necessary for buying property here, though necessary for almost everything else) as well as give advice on transporting animals, equipping your new home, schools, etc. Do not feel you have to do this on your own: a good agent should offer this help up front." The Horizon Property Group SL

Ensure your estate agent offers what you need
"If you're buying a plot of land on which to construct a new villa, seek out an estate agent who offers a new build service, as not all do. If he is experienced in new construction he will almost certainly be able to introduce you to reputable architects and builders with whom he has worked in the past." Troy Holland, Spanish Property Guide

Hire a good lawyer
"The relatively low cost of good legal advice could potentially save you a lot more." Chris Mercer, Mercers Ltd

"Your British lawyer is almost certainly not qualified to practice in Spain. Ensure your lawyer is Spanish, but speaks English." Troy Holland, Spanish Property Guide

Use a lawyer who is independent of the builder
Even if the builders' lawyer is a nice person and even if he'd be working free of charge, always use a lawyer who's independent of the builders' office." Richard Davies, ACD Spanish Properties

Find out the truth first-hand
"We would recommend going on a viewing trip for at least three days so that you can ask questions from experienced staff who live there. If viewing trips don't appeal to you, at the very least take a cheap package holiday to that destination independently to find out if you really like it." Jon Green, Headlands International

Embrace the Mañana, mañana philosophy
"If you buy a property for renovation, it is a mistake to think that the work will be finished on time or that the builders and plumbers will turn up when they say they will.

"Even just shopping for a loaf of bread can take a lot longer than you are probably used to, as what we often consider a chore the Spanish appear to think of as a social event, taking ages to pay for purchases while chatting to other people in the queue.

"If you are prepared for delays, then you will not be disappointed. It is important to be patient and generally adopt the same pace of life as the Spanish have lived for thousands of years." Val Hawdon,  C & S Homes

Be aware of the differences
"Be aware that the buying system in Spain doesn't work like ours and be sure to do your homework well in advance." Bishop's Move

Insert a penalty clause into the contract
"It is a good idea to have a further penalty clause inserted in the contract stating that if for any reason the vendor does not complete on the contract and wishes to withdraw, he must pay the purchaser an indemnity of double the amount paid as a deposit for the purchase of the property." Troy Holland, Spanish Property Guide

Think about what you really want from your new property
"If you're buying a property for your own pleasure and a rural retreat is your thing, fine. However, if investment is your main aim, you need to consider your target audience and look at whether the property has easy access to shops, bars, beaches - things that are all crucial when appealing to holidaymakers." Nigel Harvey, Seekers Spain
"If you are relocating to Spain, how is it going to feel in three years to be living full-time on a complex with part-time residents always coming and going, and holidaymakers splashing in the pool every day? Think with your head, not your heart, and don't get carried away." The Horizon Property Group SL

Look at the developer's previous work
"Look at the quality of developments built previously by the same developer if possible. Has the development matured well and stood the test of time?" Andrew Spence, Bendinat Group

Consider downsizing
"We have found over the years that clients come to Spain looking for a detached villa and in some instances, it could well be worth also looking at townhouses or low-rise apartments with gardens as these types of property very often offer easy access to restaurants and supermarkets. While people are often looking for property similar to what they have in Britain, if you're moving to Spain on a permanent basis, this is a good time to reappraise your accommodation needs. A smaller home with lower maintenance costs and less day-to-day upkeep may actually suit you more." Allan Sapsed, Blue Sky Homes

Plan your design
"Most architects will have ‘drawing board' designs of standard villas. They may be able to show you ready-built villas conforming to their standard designs, so you can then see in advance what you are likely to get. If you have specific ideas on design, you will be able to liaise with the architect and design a purpose-built property." Troy Holland, Spanish Property Guide

Be aware that many debts in Spain are on the property, not the person
"Your lawyer should have obtained proof that any outstanding debts and all community fees, electricity, water, telephone bills and rates are paid to date. These items are the responsibility of the vendor up until the day of the signing of the escritura by the new purchaser." Troy Holland, Spanish Property Guide

Find out where the local council offices are
"Confusion can arise from the fact that most public buildings are labelled Ayuntamiento, including places like libraries." Val Hawdon,
C & S Homes Overseas

Know your taxes
"You will need to know what taxes will be imposed, how much they will be and how you go about paying for them. The rates on your property, though very much lower than the British Community Charge, must be paid annually, along with a small charge for rubbish collection. This money, together with amounts for electricity, telephone and water, is usually taken straight out of your bank account at the appropriate times. It pays to check on this, though, because if your rates are not paid within a certain time, you can be charged as much as half the amount again on top." Val Hawdon, C & S Homes Overseas

Be aware of additional costs
"On top of any property price there will be certain costs, ranging from around 8.5 to 10.5 per cent. These charges incorporate taxes, notary fees and land registry costs, and must be paid at the time of purchase. All legal documents should be translated for you, so that you know exactly what you are paying for and what documents you are signing."
The Horizon Property Group SL

Buying in the countryside involves other considerations
"If there is already an existing old farmhouse or cottage on the land and it is your intention to refurbish it rather than build a brand new home, there will almost certainly be restrictions on what you can do. If the plot is isolated, the cost of putting in services such as water and electricity may be prohibitive." Troy Holland, Spanish Property Guide

Find out what community costs include
"Basics are pool maintenance, garden maintenance, a five per cent reserve fund for repainting or other major works that might be needed in future and buildings insurance." Andrew Spence, Bendinat Group

Open a Spanish bank account
"Open an account with a Spanish bank as soon as convenient. You will need this account for the payment of your standing orders for electricity, telephone, community fees and so on. Our offices will be able to recommend suitable local banks with English-speaking staff."
Bill Cleaver, Homes In Spain

Rent a home before you buy
"If you have the luxury of time, consider renting in an area you think you like so you can get to know if you really do like it before you buy." Bishop's Move

Know what you can build
"To ensure that you will be able to build on the land you are buying, your lawyer should obtain a document called an Informe from the local Town Hall. This tells you exactly what the planning authorities will allow you to build, the total square metres that can be built and the maximum height of the building." Troy Holland, Spanish Property Guide

Visit out of season
"We all know Spain is hot and sunny most of the time, but what is it like in November or February? Will you still like it?" Chris Mercer, Mercers Ltd

Avoid buying in the tourist season
"Don't try to buy in the summer tourist season, choose springtime. There'll be fewer people around and the weather will be milder." Bishop's Move

Save money by moving inland
"At the moment many small Spanish towns 15 minutes inland are extremely popular as the coast is becoming crowded. These country towns are recognising their popularity and are putting into place plans for the future." Nigel Harvey, Seekers Spain

Find out how much the property appeals through the day
"Just like at home, look at the property at different times of the day." Bishop's Move

Trust your instincts
"Unbelievable deals usually are." Richard Davies,
ACD Properties

Draw up an inventory
"If the property is being sold furnished - which you'll find is often the case when you buy a resale property in Spain - a complete inventory of the contents should be drawn up and signed by both parties." Troy Holland, Spanish Property Guide

Draw up a builder's contract
"Your lawyer will draw up a builder's contract, which will give a complete specification, reflecting the cost per square metre for tiles, the models and types of sanitary fittings, taps, doors, windows and so on, and a completion date should be fixed with a penalty clause for late completion." Troy Holland, Spanish Property Guide

Take your time
"You take more than 48 hours to make up your mind in Britain, so why jump in without really seeing what is available?" Richard Davies, ACD Spanish Properties

"However tempting it may be, don't buy the first property you see! Once you think you've found the property for you, go back to it at least three or four time before you make your final decision." Bishop's Move

See it for yourself
"Reputable agents will show you the builders' price lists as you visit various developments and you will be able to see the properties for yourself." Spanish Property Network

"Get about on the ground with your consultant or agent. Photographs are only a guide to the real thing." Richard Davies, ACD Spanish Properties

Check that the building is legal
"If the property was built within the last six years your lawyer should ask to see proof that a building licence was obtained and that a certificate of the termination of the building (Certificado de Fin de Obra) and the licence of the first occupation (Licencia de Primer Ocupation) have been issued." Troy Holland, Spanish Property Guide

Be wary of touts in bars
"Be very wary about striking up casual conversations with (very plausible) touts who hang around hotels, bars and restaurants ready to chat you up and tell you how and where you can save money on a purchase. Such people are often very skilled in the art and you can end up losing, not saving, money."  Spanish Property Network

Insist on seeing the estate agent's office
"If you are on a viewing trip, make sure you go to the offices of whomever you are dealing with. Ask to speak with their aftersales department. A reputable company will have no problem with this and that way you can become acquainted with the people who will look after you and your property while the purchase is going through. This will also give you a name to contact and peace of mind.
Be very wary of anyone who won't take you to their office. Many estate agents work off a kitchen table and once you have parted with your cash you won't see them for dust!" Nigel Harvey, Seekers Spain

Look at the estate agent's track record
"A good estate agent will be registered and have a good reputation - and they'll also have lots of properties to show you, one of which will probably be your ideal home." The Horizon Property Group SL

Check where the estate agency is based
"Use an agent with offices in the UK and Spain." Chris Mercer, Mercers Ltd

Find out what the agency's interests are
"Has the agent invested in what they are selling? Usually a good sign." Chris Mercer, Mercers Ltd

Make sure you know who the current owners are
"The Escritura (title deeds) confirm that the people who claim to be the owners really are." Troy Holland, Spanish Property Guide

Check the Nota Simple
"This document from the Land Registry office shows who the legally registered owner of the property is. It also shows if there are any mortgages or other encumbrances registered against the same. The names on the Nota Simple should match those on the Escritura." Troy Holland, Spanish Property Guide

Pay attention to the exterior
"Ensure that the architecture, pools and gardens are all of a very high standard. Most people tend to focus on kitchens and bathrooms which, although important, do not stand the test of time." Andrew Spence, Bendinat Group.

Check your boundaries
"Most country plots will be sub-divided farmland and the borders may not be clearly marked. A topographical survey should clearly delineate borders and state exactly the total square metres of the plot. If the land is not already fenced, then a new purchaser may consider fencing off the plot (according to his survey) to avoid possible future disputes." Troy Holland, Spanish Property Guide

Consider the gardens
"If you're buying a ground floor apartment, make sure there is provision for the maintenance company to look after your garden. Apart from the convenience, if private gardens are left to individual owners to care for, you may find some gardens looking beautiful while others are full of weeds. Being such visible elements, shabbily-maintained private gardens could bring down the standard of the development as a whole." Andrew Spence, Bendinat Group

Read the contract
"The contract should include the purchase price and conditions of payment, a complete description of the property, a section headed Cargas (Charges), which should read ‘Free of Charges and Encumbrances', and a clause concerning vacant possession on completion, which should read ‘Free of Sitting Tenants'. Troy Holland, Spanish Property Guide

Consider the resale potential of the property
"Once you are happy about all other aspects of the purchase, take a good look around you and ask yourself ‘if I buy this property, am I sure that I can sell it again if the need should arise?' Think about it even if you do not intend to sell the property. If the answer is ‘yes,' then it is probably okay to proceed with the transaction." Spanish Property Network

Look beyond the rubble
"If you're buying off plan, remember that ground floor apartments can produce the highest returns in future. The reason is that they tend to sell a little bit slower off plan, because there is usually a lot of builders' material where the view and the garden should be. Penthouses and flats on upper floors are quicker to sell, but in future when you come to resell, and the private garden area is established and attractively planted, they can attract a much higher premium and demand than other units." Andrew Spence, Bendinat Group
 
Make the most of the weather
"When moving to sunnier climates, remember that the most used room in the house is often the covered or open terrace, which will enable you to enjoy the beautiful weather that you've moved for." Allan Sapsed, Blue Sky Homes

• Bank guarantee: Builders are required to take out a special bank guarantee that will compensate investors should things go wrong. Check this, as its purpose is to protect your money in the event of a problem.
• Reputation: If possible, stick to major developers who have a proven track record in the local area. Reputation is all-important and it is reassuring to know that the company has demonstrated in the past that is it capable of delivering the promised product.
• Planning permission: Ask the developer to prove the status of planning permission/building permit and have this checked by a reputable solicitor. In one recent case, it was claimed that a major developer has taken as many as 2,500 deposits on properties that don’t have planning permission as yet. Not having a permit yet is not necessarily a problem, but you need to know this is the case and it should be reflected in the price. When and if permission is granted, it may not be for the property that you’ve seen plans for. For example, the exact apartment layout and even size and position cannot be guaranteed but plenty of people still buy owing to the greater discount at this phase. Stick to reputable builders!
• Due diligence: Do your own research. Take a drive around the area to visit any new developments being built and ones recently completed. Remember, an agent won’t always have your best interests at heart.
• What’s included: Appliances? Fitted kitchen? Always check exactly what is included in the price.

The government wants people who can save for retirement to do so. Stakeholder pensions are designed for people without access to employer sponsored pension arrangements. They are secure, flexible and offer value for money. They will provide the opportunity for many more people to save for retirement in a way they can afford.

(please note that when we use the term ‘provider’ on these web pages, this is intended to encompass both trustees and stakeholder managers)

Stakeholder pensions defined

The legal requirements for stakeholder pensions are included in the ‘Welfare Reform and Pensions Act 1999’ and ‘The Stakeholder Pension Schemes Regulations 2000 - SI 1403’.

To qualify as a stakeholder pension, a pension scheme must satisfy a number of minimum conditions:

• it must be a defined contribution arrangement;
• management charges in each year must not amount to more than 1.5% of the total value of the fund and are taken from the fund;
• as well as the 1.5%, the law allows pension providers to recover costs and charges they have to pay for certain other things. For example, when they have to pay any stamp duty or other charges for buying and selling investments for the fund , or for particular circumstances such as the costs of sharing a pension when a couple divorce. These expenses are found in other pension schemes not just stakeholder pensions.
• any extra services and any extra charges not provided for by law must be optional. Extra services must be offered under a separate arrangement with clearly defined costs for the services being offered;
• the scheme must accept transfers in, and there must be no additional charge for transferring to a different stakeholder pension;
• the minimum contribution to a stakeholder pension cannot be set higher than £20 (schemes may set a lower minimum contribution if they wish). Contributions can be paid weekly, monthly (or at other intervals), or they can be a single one-off contribution;
• to look after the interests of their members, schemes must have either trustees or stakeholder managers;
• for trust-based schemes, a third of the trustees must be independent;
• schemes must appoint a scheme auditor or a reporting accountant to check the annual declaration made by the trustees or managers to ensure that the scheme complies with the charging regulations;
• schemes must have a statement of investment principles;
• schemes must have a default investment option which is subject to lifestyling (this means that during the years leading up to retirement a member's pension is gradually moved into less volatile investments, therefore providing greater security as they approach retirement).

Who should take out a stakeholder pension?

Stakeholder pensions could be a good option for people who currently earn more than around £10,000 a year. However, they will be available to almost everybody, including people in employment, fixed contract workers, the self-employed and people who are not actually working but can afford to make contributions. It’s also possible to contribute to someone else’s stakeholder pension - for instance someone can make contributions to their non-working partner’s stakeholder scheme on their behalf.

How much can be invested in a stakeholder pension?

It is possible to invest up to £3,600 (including tax relief) in a stakeholder pension scheme each year without evidence of earnings. People can contribute to a stakeholder pension scheme even if they are not earning (up to the £3,600 a year maximum). However, under certain circumstances the maximum level of pension contributions may be increased for people with earnings according to their age and earnings level.

People who are already a member of an occupational pension scheme may also pay up to £3,600 a year into a stakeholder pension scheme, providing they satisfy certain criteria.

Trust schemes and non-trust schemes

Stakeholder pension schemes can be set up under a trust (where a body of trustees is responsible for managing the scheme) or can be set up by deed poll. Where the scheme is set up by deed poll, the manager of the scheme (the "stakeholder manager") may enter into contracts with each member of the scheme or a person acting on their behalf. The stakeholder manager could be an insurance company, bank, building society and must be authorised by the Financial Services Authority (FSA) to carry out stakeholder business.

Regulation of stakeholder pensions

The register of stakeholder pensions
Schemes which satisfy the registration conditions and have tax approval from the Inland Revenue must be registered with the Pensions Regulator.

The register of stakeholder pension schemes is available on this website.

The Pensions Regulator is responsible for enforcing the conditions that define a stakeholder pension and allow it to be registered.

The Pensions Regulator can fine trustees and providers for falling short of the conditions. In extreme cases it can withdraw stakeholder registration and order the winding-up of the scheme.

Financial Services Authority (FSA)

The FSA will regulate the marketing and promotion of all schemes including any occupational pension schemes that are set up as stakeholder pension schemes.

Financial advice on stakeholder pensions
Any extra charges for provision of advice on stakeholder pensions must be entirely optional. Any charge levied for advice over and above the 1.5% stakeholder charges limit must not be deducted from pension contributions and should be entirely separate from the scheme charging structure.

Financial advisers must keep to the rules laid down by the Financial Services Authority (FSA) and must state which organisation regulates their work.

The Pensions Regulator and the FSA will liaise closely, to ensure that stakeholder schemes are run according to the rules.

Tax and national insurance

Tax relief
Normally there will be tax relief on any payments into a stakeholder pension. The Inland Revenue will send the amount direct to the trustees or stakeholder pension scheme manager. To find out more about stakeholder pensions and tax, please see leaflet PSO2 Personal pensions (including stakeholder pensions) - a guide to tax.

People who pay income tax at the higher rate (40%) will be able to claim back the tax difference from the Inland Revenue at the end of the tax year through self assessment.

Contracting out
If an individual contracts out of the State Second Pension (used to be called SERPS) using a stakeholder pension plan, a rebate of National Insurance contributions is paid into their stakeholder plan.

Regular information for members

Once someone has joined a stakeholder pension scheme, the trustees or stakeholder manager must provide them with regular information. This information will include an annual statement detailing how much has been paid in and how the individual’s fund is progressing. It may include a forecast of the likely pension on retirement.

Stakeholder pensions in the workplace

Employers and stakeholder pensions
Employers who are not exempt must designate and offer access to a stakeholder pension scheme. If any employees join the designated scheme, the employer must offer a payroll deduction facility to those who want it.

The Pensions Regulator are responsible for regulating the requirement for employers to give access to stakeholder schemes.

Employers must pay employee contributions to schemes within a specified timescale, and the Pensions Regulator will be responsible for dealing with any reports of late payment of contributions by employers.

If a stakeholder manager or trustee does not receive the expected amount from the employer on the date it is due, they have a statutory duty to report the matter to the Pensions Regulator.

The Pensions Regulator will monitor reports of late payments and will take appropriate action against the employer where necessary.

Monitoring by scheme managers or trustees

Stakeholder managers or trustees will be required to monitor that payments made by the employer or deducted from employees’ pay are for the correct amount and are paid in on time. Employers will need to maintain payment records and inform the trustees or stakeholder manager of any changes. Any late payments, non-receipt of payments, or reduced payments by the employer that are not explained must be reported to the Pensions Regulator. The Pensions Regulator will then consider taking action.

Penalties

Employers may incur a civil penalty from the Pensions Regulator if they fail to:

prepare a record of the payment arrangements;
keep the record up to date;
send the record to the trustees or stakeholder manager;
inform the trustees or stakeholder manager of any amendments/changes;
make correct payments by the due date.
The maximum fine possible is £50,000 for a company or £5,000 for an individual.

Where there is fraudulent intent, the penalty may be criminal.

The Pensions Regulator is less interested in punishing people than in getting things done correctly. Inadvertent mistakes are unlikely to be punished if they are put right promptly.

• The DWP stakeholder pensions website
• FSA's approach to the regulation of stakeholder pensions business
• FSA consumer help
• Her Majesty's Stationery Office (HMSO)
• The Inland Revenue stakeholder pensions website
• The OPAS stakeholder helpline
• The Occupational and Personal Pension Schemes (Penalties) Regulations 2000
• Pensionguide.gov.uk (the government's impartial pension information site)
• The Pensions Ombudsman
• Stakeholder Pensions - government websites
• The Stakeholder Pensions Schemes Regulations 2000 - SI 1403
• Welfare Reform and Pensions Act 1999

It is difficult and exciting at the same time to choose a property to have your home in Spain. However, choosing the perfect place is not the end: you have to fulfil some formalities until title of your new home is obtained.

Lawyer

Always look for the guidance of a Lawyer qualified in Spanish Law. Using a lawyer is the biggest guarantee to avoid unexpected surprises. Your lawyer will make a "search"of the property to be purchased and will also get you the most advantageous deal possible when dealing with developers or any other vendors. He will keep you updated on the progress of the purchase and will provide you with full details on all the financial transactions and the legal side.

Contract and deposit

Once you have found the property you have been looking for through your lawyer or an estate agency, the first step is to make an offer on the house through your lawyer or estate agent. If accepted, you will have to pay a reservation fee to take it off the market and to secure the property whilst negotiations between the parties’ legal advisors are held. If your offer is accepted, a private agreement will be drawn up between your lawyer and the seller, in which the terms and conditions of the sale are stated such as a completion date and the conditions of the transactions, which should usually contain an assurance by the sellers that the property is sold free of charges, tenants and mortgages. Please note that properties in Spain are free hold, not lease hold as in the UK.

Completing the purchase

Our law firm will prepare the documentation required for the transfer of ownership. On the appointed day buyer and seller, and/or their legal representatives, meet at the notary’s office to sign the official transfer of Title Deed from the Seller to the Buyer .The witnessing of the accompanying documentation by the notary acts as your legal safeguard. The change of ownership will be recorded in the official registry and completes the process, leaving you safe in the knowledge that your property purchase is official and free of encumbrances.

All properties in Spain should be registered with the land registry where you can obtain the exact details of the owner, the size of the property and details of any mortgages, debts or judgements against the property. Only the people or company named on the title deed have the right to sell the property.

For anything that involves paying tax like owning a property or a car, or to work in Spain you need and NIE number. This number is necessary for all non-residents. Your lawyer will be very pleased to assist you with this matter and solve any other query that you may have regarding purchasing in Spain.

Spanish wills

We recommend that you make a Spanish Will to dispose of your assets in Spain to avoid expensive and complex legal procedures. Spanish laws protect family heirs in that they restrict the testators freedom to dispose of their estate to anybody they choose.

Cost of purchase

Generally speaking, you have to budget for costs of approximately 11% on top of your Spanish property purchase price. This will cover solicitor’s costs, notary public fee, land registry, stamp duty and VAT. A breakdown of all the costs involved is provided below.

Property Tax

Which of these two taxes is levied will depend on the type of property you are purchasing; the property transfer tax is levied on resale properties and is charged at 7 % of the new title deeds value. But if you purchase a newly built property from developer you will pay a different tax called IVA (VAT) which is charged at 7% of the selling price - plus 1 % stamp duty.

Who Pays What?

The buyer is responsible for:
Transfer Tax (or IVA plus stamp duty when buying from a developer)
Property Registration Fees
Notary Charges
Lawyer's Fees

The seller is responsible for:
His own Capital Gains Tax on any increase in title deeds value
Plusvalia Tax
Selling Agent Fees

The normal custom is for the seller to pay the Plusvalia, if however the buyer agrees to pay this tax, please remember that it is registered against the land and you will have to pay if the vendor fails to do so. This tax is often not demanded until some time after completion.

Information supplied by Anderson & Asociados Abogados - Property specialist lawyers in Spain.

About Anderson & Asociados Abogados

Anderson & Asociados Abogados is one of the most experienced law firms on the Spanish Coast (we have offices in Marbella, Sotogrande and Costa Blanca and associated offices in Madrid, London, Dublin, Oslo, Stavanger and Eslohe), providing legal advice to national and foreign clients. We aim to distinguish ourselves through the quality of a correct advice and excellent service, our capacity of innovation and our ability to assist our clients in the following areas:

• Conveyance for non-residents: we specialise in property conveyance. With our international network and efficient approach, we can offer services to the highest professional standards. Anderson & Asociados Abogados will provide the legal guarantees for the purchase, ensuring that the Spanish legal requirements are met.
• Mortgage financing and inheritances.
• Company law and management consulting: set up and maintenance of companies in Spain.
• General Tax Consultancy and Accountancy Consulting to individuals and companies and fiscal representation.
• Legal assistance and representation in trial actions, proceedings and court cases, mediation and other alternative dispute settlement methods.

Our main partners are all English speaking and several other languages are spoken by our staff member as Norwegian, Swedish, Danish, Russian, Dutch, German and French.

Our primary goal is to provide our clients with a professional and efficient service, the professional excellence. In order to achieve this we provide our services twenty four hours, seven days a week. This service together with our continuous search for the quality has been the true engine of our growth.

For more information visit Anderson & Asociados Abogados

If you want guaranteed sunshine, miles of glorious sandy beaches, excellent food, an abundant choice of entertainment, and a wide choice of homes at affordable prices, then you will find Spain hard to beat. Although the vast majority of holiday makers (and residents) come to Spain to recline on a beach, there's much more to the country than the costas and its islands.

Spain has Variety

Spain offers infinite variety with something for everyone, including magnificent beaches for sun worshippers and spectacular unspoiled countryside for magnificent vistas and peaceful strolling. There are also an abundance of mountains and seas for sports fans and a vibrant night-life for the jet set. For those who are comfortable living in cities, there are bustling sophisticated metropolises. For those with gourmet tastes, there are superb wines and fabulous cuisine. There is a wealth of art, culture and serious music for art lovers and numerous festivals and fiestas for inveterate party-goers. And, there is tranquillity for the stressed.

Not for nothing do the Spanish claim to have "Everything Under The Sun!" When buying a home in Spain you aren't simply buying a home but a lifestyle, and as a location for a holiday, retirement or permanent home, Spain has few equals, particularly if you're seeking year-round sunshine.

Why Buy in Spain

There are many excellent reasons for buying a home in Spain, although it's important not to be under any illusions about what you can expect from a home there. To get a firm handle on what you expect, ask yourself exactly why you want to buy a home in Spain. For example, are you seeking a holiday or a retirement home.

The Costa Blanca and Costa del Sol have the highest percentage of retired persons in the world, when both Spaniards and foreigners are included. If you're seeking a second home, will it be mainly used for long weekends or for lengthier stays? Do you plan to rent all or a portion of it to offset mortgage and operations costs? If so, how important is the property income? Are you primarily looking for a sound investment? Do you plan to work or start a business in Spain? These are questions that need answers no matter where you purchase, but especially in Spain because of the variety of choices Spain has to offer.

Often buyers have a variety of reasons for buying a home in Spain. For example, many people buy a holiday home with an idea of living there permanently or semi-permanently after they retire. If this is the case, there are many more factors to take into account than if you were simply buying a holiday home that you will occupy for just a few weeks a year. If, on the other hand, you plan to work or start a business in Spain, you will be faced with a whole different set of criteria. You may be thinking of buying a home in Spain and commuting to another European country to work. Many people are doing just that because Spain has a lot to offer.

Don't Stretch Your Financial Resources

Can you really afford to buy a home in Spain? What of the future? Is your income secure and protected against inflation and currency fluctuations? In the '80s, many foreigners purchased holiday homes in Spain by taking out second mortgages on their family homes abroad and stretching their financial resources to the limits.

Not surprisingly, when the recession struck in the early '90s many people had their homes repossessed or were forced to sell at a huge loss when they were unable to maintain the mortgage payments. Buying a home abroad can be a good, long-term investment, although it's possible to get your fingers burnt in the occasional volatile property market in many countries, including Spain.

The Benefits Outweigh Drawbacks

There are both advantages and disadvantages to buying a home in Spain, although for most people the benefits far outweigh any drawbacks. Among the many advantages are guaranteed sunshine and comfortable Mediterranean temperatures. Some areas of Spain, especially the resort areas, are some of the least polluted areas of the world.

There's good value for your money, and Spain is easy and inexpensive to get to, at least for most western Europeans. There are great rental possibilities and good local tradesmen and services. There are fine foods and wines at reasonable prices and a relatively low cost of living. There's the slow, relaxed pace of life; the friendliness and warmth of the Spanish people; the dramatic, rugged beauty of Spain on your doorstep; and, last but not least, a superb quality of life.

A Few Disadvantages

Naturally, there are also a few disadvantages, not the least of which are the relatively high purchase costs associated with buying property. There could also be unexpected renovation and restoration costs if you don't do your homework. Check with local officials to see if there's a high rate of burglary and housebreaking that are present in some areas. Be prepared for overcrowding in popular tourist areas during the peak summer season and traffic congestion and pollution in many towns and cities. Beware also of a number of admittedly small taxes for non-resident homeowners. The phrase, "In Spain, the rain falls mainly on the plane," can be all too true when occasional draughts cause severe water shortages in some regions, particularly during the summer. Finally, don't overlook the expense of getting to and from Spain if you own a holiday home, and you don't live in a nearby country or a country with good air connections.

Get Familiar with the Area

Unless you know exactly what you're looking for and where, it's advisable to rent a property for a period until you're more familiar with an area. As when making all major financial decisions, it's never advisable to be too hasty. Many people make expensive (even catastrophic) errors when buying homes in Spain, usually because they do insufficient research and are in too much of a hurry, often setting themselves ridiculous deadlines such as buying a home during a long weekend break or a week's holiday. Not surprisingly, most people wouldn't dream of acting so rashly when buying a property in their home country! It isn't uncommon for buyers to regret their decision after some time and wish they had purchased a different property in a different region.

Do your Research

Before deciding to buy a home in Spain, it's advisable to do extensive research on buying. Two good resources are, Buying a Home in Spain and Living and Working in Spain, both written by the author of this article and published by Survival Books. It also helps to study specialist property magazines and to visit overseas property exhibitions. Bear in mind that the cost of investing in a few books or magazines is tiny compared to the expense of making a big mistake.
                                                                                               
The article above was written by David Hampshire

Buyers of property in the Valencian Autonomous Community should be aware that under the Valencian Government’s Ley Reguladora de la Actividad Urbanística of 1994, all land may be converted for property development, unless it has been deemed no urbanizable on historical, cultural or ecological grounds.

This means that even suelo rústico (rural land) may be re-designated as fit for property development if the town hall approves a developer’s plan for such change of use. Land classed as urbanizable is also, by definition, appropriate for development. It is therefore important, when buying property, to check future development plans at the town hall. This is also advisable even where land is already deemed to be urbano, since only by checking the status of the property can one become aware of the implications of likely future developments.

Prospective purchasers should take professional advice from a lawyer who can help with the necessary investigation.

Owners of property where a change of classification is approved should receive a notice from the town hall that they have 15 days in which to comment on the proposed new use. They may argue to preserve the status quo or in some way to protect their existing rights, but as matters now stand the probability is that the change of use will be permitted, perhaps with some modification. The town hall’s decision will be subject to approval by the Valencian Government.

If planning is approved, current owners will be obliged to contribute to the new development. This may involve having some of their land expropriated (against exchange or compensation which will depend on the existing classification of the land). Owners will also have to make a financial contribution for the construction of roads, drains, lighting and other urban development costs.

It is important that British citizens who become involved in such cases should observe the 15-day limit for appeal (alegaciones) and seek professional legal advice in negotiation with the developer (urbanizador).

Although the law has been referred to the Constitutional Court by the High Court in Valencia, it remains in force until any contrary or modifying judgement may be made by the Constitutional Court. The Court is not expected to make a decision until 2004.

Purchase

Buying property in Spain has many potential pitfalls and is subject to different legal procedures than in UK. Below is a list of do's and don'ts to assist buying a house or flat in Spain.

• Use the services of a reputable local lawyer. Only a lawyer will know all the checks that should be made before parting with money.
• Remember that you will have to use the services of a Public Notary. The Notary is not acting for you, and will not give advice. He/she is an official of the state whose job is to ensure that all transactions are in the proper form.
• Remember that the parties to a sale and purchase have to appear in person before the Notary at the same time. If they do not want to appear in person, they can give power of attorney (in the Spanish form) to their lawyer (or anyone else) to represent them.
• Obtain an estimate of legal fees and disbursements including the fees of the Notary and the Property Registry and for the power of attorney, and confirm who is responsible for payment of the Notary's fees and any capital gains tax which may arise from the sale.
• Use an estate agent. They will be able to show you a selection of properties in the area of your choice, and have an idea of the value of the property of your choice.
• Unless you speak fluent Spanish, always have documents translated for you into English by someone you can trust. It is worth the expense of having lengthy documents translated, e.g. title deeds, so that you understand fully what the original documents say and mean.
• Ask your lawyer to confirm to you into writing that there is no mortgage or other charge or encumbrance registered on the property you are intending to buy, that it is registered in the name of the seller, and that there are no outstanding local taxes or capital gains tax ('plusvalía'). Make sure that all the community payments are up to date. In Spain, blocks of flats and houses form communities and pay a monthly amount which covers communal expenses, e.g. water bills, electricity in communal areas and sometimes central heating. If you buy a property which has these payments outstanding, you will be liable for them as the new owner.

• Think you can buy a property without taking professional advice. If you do you could end up with neither property nor money.
• Part with any money unless you are absolutely sure what you are getting for it and have received professional confirmation that everything is in order.
• Rush into what appears to be a bargain where you are offered considerable savings if you act quickly.

The Foreign and Commonwealth Office cannot give legal advice on buying a property in Spain but each consular post can supply a list of local English-speaking lawyers. Further information is available from:

Rentals

There is provision for the tenant to pay a deposit of one month's rent for unfurnished accommodation or two for furnished accommodation. This is lodged with the local autonomous community as a guarantee to both tenant and landlord. Additional guarantees may also be negotiated.

Timeshare

Timeshare ownership carries many risks and dangers. Prospective purchasers are advised to study any offer carefully. They should never sign anything unless there is written provision for a 'cooling-off' period (during which time they can change their mind without incurring a penalty).

Getting started

Entry and residence requirements

Taking up residence in spain

Who doesn't need to obtain a residence card?

Who must obtain a residence card?

• Temporary residence card: intended stay of more than three months but less than one year.
• Ordinary residence card: intended stay of more than one year with a maximum validity of five years and renewable.

How to apply for a residence card

Further information is available from the Spanish Ministry of the Interior, Tel: 900 150 000. You can also download an application form here

Finance

Using the Services of a 'Gestor'

However, 'Gestores' do not produce immediate results and residents should always obtain an estimate of costs before engaging their services. It is not uncommon for the 'Gestor' to require a down payment to cover the whole fee. Gestorías can be found in the Páginas Amarillas

Bank accounts

• Non-residents: Visitors can open a bank account with a non-resident certificate, which they can get from the local Spanish police office (in Madrid, this is at the Brigada Provincial de Documentacion, c/Los Madrazos 9), by presenting their passport and a copy of the original and completing the application form. Visitors must close these accounts if they become resident.
• Residents: UK nationals resident in Spain can open a bank account with a residence card.

How to obtain an NIE (Foreigner Identification No.)

Alternatively their representative can go to the police station, with the documents to show why they want an NIE, or they can go to the Spanish Consulate in the UK.

Transfer of capital

Transfers of Capital from Spain are governed by Spanish Foreign Exchange Regulations.

Taxation

Medical cover and treatment in spain

Taking up residence in spain

Long-term residents

People in employment

A social security number card should be obtained from the local Tesorería de Seguridad Social (in Madrid at c/Astros 5 y 7, Tel: 91 503 80 00). This should then be presented at the local medical centre (ambulatorio) along with the correct form, which will entitle the card holder to receive a medical card (tarjeta sanitaria) for ordinary health treatment. A list of medical centres in Madrid is available from the Provinicial Madrid Health Service (Instituto Madrileño de la Salud), c/ Sagasta 6. Medicines are free if prescribed to treat work-related accidents or illness, otherwise patients pay 40% of the cost.

The self-employed should first obtain an NIE (foreigner identification number) from the police (although we advise obtaining a residence card is easier and more useful) and the Alta Fiscal from the Head Tax Office (Hacienda).

They should take these two documents to the nearest office of the Tesorería de Seguridad Social and ask for the Alta de Autónomo and the Inscripción en la Seguridad Social. They will receive a social security number card, which will entitle them to the tarjeta sanitaria (health card) from their nearest ambulatorio (medical centre), and full medical cover.

Working temporarily for a uk employer

If the job unexpectedly lasts longer than 12 months, and the appropriate insurance authorities in Spain agree, employees may remain under the UK scheme for a further period of not more than 12 months.

Students

A student who is undertaking work in Spain that specifically relates to their studies is entitled to form E128 for up to two years.

UK pensioners settling in spain

To establish entitlement they must obtain form E121 from the DSS in the UK. To register a UK-issued form E121 they should go to the local INSS office - Oficina del Instituto Nacional de Seguridad Social (the main office in Madrid is c/Padre Damián 4-6, Tel: 91 568 83 00) with their E121, application for a residence card and their passport. The INSS will issue a 'tarjeta de afiliación' and assign the pensioner to an outpatients clinic (ambulatorio) and INSALUD doctor. They must apply for a residence card before they can register their E121. Prescribed medicines are free for pensioners and their dependents.

Those who settle in Spain after early retirement, i.e. before the normal UK pensionable age (60 for women, 65 for men), should consult their local DSS office about their medical cover, possibly under form E106, before travelling.

Ill or deteriorating health is costly, and the Spanish Health services do not cover the wide range of assistance pensioners may be used to in the UK. All EU citizens may expect the same social services as any Spanish citizen under the same conditions, subject to local waiting lists and financial contributions. However, they should bear in mind that such things as meals on wheels, day care centres and nursing homes, which are the responsibility of local, regional and municipal authorities, vary from district to district, may be scarce and welfare staff will not usually speak English.

British citizens who have been in Spain for a long time may be admitted to Spanish State homes, but places are very limited even for Spanish pensioners, and there are no British Government or other officially subsidised places. Copies of the Guía Directorio de Centros para Personas Mayores (Directory of Nursing Homes) are available by writing to: IMSERSO, Departamento de Publicaciones, Avda de la Ilustración s/n, c/v Ginzo de Línea, 28029 Madrid. Tel: 91 363 88 88, Fax: 91 363 88 80, www.seg-social.es. More specific information can be obtained by contacting the Consejería de Trabajo y Asuntos Sociales or its equivalent in the area where the pensioner lives.

Private residential homes, which provide various levels of treatment, from purely residential facilities to full-time nursing care and medical assistance, are expensive - probably no less than £1000 per month, and staff will usually only speak Spanish. However, there are some British run homes, mainly on the Costa Blanca.

It is advisable to take out private insurance, which will cover medical and dental treatment and even repatriation to the UK.

People of independent means

Returning to the UK

Finding work in Spain

Job centres in the UK have details of vacancies throughout the EU, supplied to them through the EURES network, which supports free movement of workers within Europe. As well as UK job centres, EURES can be contacted through Job Centres in Spain (Oficinas de Empleo). For more information visit http://europa.eu.int/jobs/eures, or call 0114 259 6190.

Employees may wish to seek legal advice before signing any contract for work. Companies with over fifty employees will normally have a trade union representative who can advise on basic rights and recommend a labour lawyer.

Those looking for work are expected to support themselves while doing so. Unemployment benefit may be transferable to Spain for a limited period. Spanish benefits are not usually payable to non-Spanish nationals. Further information: INEM (National Employment Office). INEM: c/ Espartinas 10. 28001 Madrid. Tel: 91 576 89 02

Self-employment

The British Consulate-General in Madrid and the British Consulates in other cities are not equipped to provide an employment service and cannot reply to enquiries about openings for employment, enter into detailed correspondence or make arrangements in connection with paid or unpaid work. Nor can they intervene in disputes over employment, contracts etc.

PYME : c/ Castelló 117. 28006 Madrid. Tel: 900 190 092. www.ipyme.org
INEM: c/ Espartinas 10. 28001 Madrid. Tel: 91 576 89 02. www.inem.es

Education

The British Council has details of schools in Spain which offer an English-type education. Most are members of the National Association of British Schools in Spain, which organises periodic inspections by British inspectors, in collaboration with the British Council.

British Council
Paseo General Martínez Campos 31
28010 Madrid
Tel.: 91 337 35 66/ 00
Fax: 91 337 35 73
www.britishcouncil.es

Spanish british associations, clubs and expatriate organisations

Visit Emerald Heights Mauritius for more information.