Finance info for Spain

BANKS ACCOUNTS


When you arrive in Spain we will advise that you open a bank account as soon as possible and with our guidance and you can do this with a minimum amount of fuss and money.
 

There are many banks in Spain and from April 1994 any European Union Bank can open branches within Spain. You should not suffer from lack of choices although we will direct you to the local banks we have dealings with. BBVA, Cajamurcia, Sol Bank, Cam Bank and many others.They are usually open Monday to Friday 9:00am to 2:00pm and Saturday from 9:00am to 1:00pm, sometimes in the summer they may close slightly earlier and you will find that most employee's have a working knowledge of English.
 

Residents of Spain can have a current account and savings account, however for non residents there is a different type of current and saving account available. All you need to open an account is your residence permit or passport, you will be asked to complete a form by the bank which set's out the bank's general terms and conditions. You will also be asked for your N.I.E. number.


A current account usually carries a very low interest rate, if any and if you want you can ask for a check book or a Debit Card. A fix deposit account may give you interest, this depends on the time period of the deposit and the amount deposited. You may be able to bargain about these conditions! A savings book account carries a low interest rate however it does not give you a continuous written record of your account and in some instances can be used in cash machines for withdrawing money.
 

The bank has an obligation to retain 18% of your interest earned, but if you have a fix deposit and are a non resident this doesn't apply. The bank should prepare an annual statement giving balance for the year, which you will need to use for your Wealth Tax Declaration if you need to make one.
 
 

TRANSFERING MONEY


There are no restrictions on transferring funds to and from Spain from other countries of the European Union. Usually you would consult your bank but we will advise you to consult with specialist Foreign Exchange companies who can save you a considerable amount if you have to change your currency into Euros.
You will find that some banks charge heavy commission to transfer pensions from abroad so it will benefit you hugely if you find out the conditions offered by the different financial organisations.
 
 

CHEQUES


It is quite important to write the following on a cheque 'abonar en cuenta' which means 'to be credited to the account of'. This ensures that it can only be deposited by the person you wrote it out to. You should right all cheques in ink or ball point pen and not leave any spaces that could be used to increase the amount written on the cheque. You should make a point to hide any blank cheques, never leave a blank signed cheque any where and thoroughly destroy any cheques that you have written incorrectly or disregarded. In Spain if you write a cheque without funds in your bank it is classed as illegal.
 
 

RECEIVING YOUR BANK STATEMENT


Most banks are willing to forward your statements to a address of your request. The long number on your statements is a mixture of the following:
The first four digits give the Bank's number
The next four give the Branch number
Then there are two numbers that are control numbers
The last ten digits are YOUR number.
It is advised that you use the whole number to avoid any confusion.
 

Other items of information you will find on your statement are listed below:

• "Saldo actual" - This is your current balance
• "Fecha" - This is a column that gives the date of each transaction
• "Concepto" - This is a word or a code for a transaction, you will sometimes find this quite in depth and an explanation may be found on the back of your statement.
• "Importe" - The amount that was involved in the transaction
• "Oficina" - This is the identifying number of the transacting bank
• "Saldo" - The balance on your account after each transaction
• "Valor" - This is the date that a deposit will start receiving interest
• "Fecha del extracto" - Is the date of your statement
• "Hoja" - Is the page number
   
   

ADDITIONAL BANKING SERVICES


To set up a standing order you will have to complete a form supplied by the bank or from the business that is billing you. This will be to pay bills such as local taxes, water, electricity, phone etc. Both your bank and the company billing you must be informed if you do not have the money to pay the standing orders, if you do not inform them you may get home to find that they have stopped your supply.
 

It may be a good idea to ask for a list of fees from your bank for various transactions, they can sometimes make mistakes that you may need to pick up on.
 
 

BANK CERTIFICATE


You will have to ask you bank for a certificate if you are applying for a residence permit, which will show that you receive a regular pension from abroad.
 
 

ANNUAL RUNNING COSTS


The cost of living in Spain is considerably lower than the U.K. and also depends on the size of your property. The following costs are an approx. guide of running costs based on a 2 bedroom property for a year.
 

Standing Charges for Water = 67 euros (£42.88)
Standing Charges for Electric = 108 euros (£69.12)
Local Rates = 102 euros (£65.28)
Building and Contents Insurance = 150 euros (£96.00)
Patrimonial Tax = 210 euros (£134.40)
Spanish Fiscal Representation = 91 euros (£39.04)
Telephone = 132 euros (£84.48)
Cable TV = 156 euros (£99.84)
*This is not inclusive of amount used.
 
 

RATES & WEALTH TAX


This is a yearly tax that is paid by non residents. If you need to pay this your lawyer will see that it is paid on your behalf.

 

COMMUNITY FEES


These are no longer required on re-sale properties, unless there is a communal swimming pool etc. Community fee is a democratic law which enables a community to run in line with everyone's wishes. All communities have to elect a president, treasurer, administrator and a secretary. These people are responsible to the community and have to make sure the all rules are adhered to, from time to time they will report to people of the community on all matters.
 

If you live on an Urbanisation you will incur community charges, which are for communal swimming pools. If you have your own pool your not exempt from paying this charge.
 
 

SHOPPING COSTS


Markets: Most fruit and vegetables are cheaper here than in the UK and you have a much wider variety, however be aware market produce is not necessarily cheaper than some supermarkets. Market stalls are more varied than in the UK and you will find lots of stalls dedicated to things such as olives, pickles and many more wonderful treats.
 

Supermarkets: They sell a lot of English items but you will find that most are quite costly. There are "English Supermarkets" or "International Supermarkets" in different areas. English cheese, soups and a lot of frozen items such as chips, pizza, bread and bacon you will find are the same brands as those purchased from the UK.
 

Non Food Outgoings: Cleaning, laundry, personal hygiene products, paper napkins and kitchen towels are a little cheaper than in the UK. Overall most items are very competitively priced. Popular brands can be found in most supermarkets. E.g. Revlon bath/shower gel 750ml approx. is around 1.89 euro (£1.30)