National Health

So you think you are covered? Are you?

PLEASE READ VERY CAREFULLY

Residents in Spain should ensure they are covered by private insurance if Spanish Social Security does not cover them. Many people are not aware that they are not covered either in Spain or back in the UK.

LONG-TERM RESIDENTS NOT ENTITLED TO HEALTH COVER

Long-term residents in Spain who are not pensioners, employed persons or officially resident do not qualify for Spanish State health care or NHS treatment in England.

UK nationals living in Spain are not entitled to health care in Spain at UK expense. Using an old UK-issued E111 to obtain Spanish health care (which is charged to the NHS) is fraud. They have no right to health care in the UK either, as they are not ordinarily resident there. However, they would receive emergency NHS health care in the UK, in the same way as those persons who are officially registered as resident in Spain may receive emergency health care in England while on a visit there.

PEOPLE IN EMPLOYMENT

UK nationals working in Spain should be affiliated to the Spanish Social Security system and are covered by Spanish National Health care for which the employer will deduct social security contribution's from the employee's pay packet, usually on a monthly basis. Proof of such payments are shown on the pay slip.

A social security number card should be obtained from the local Tesorería de Seguridad Social. 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. 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 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.

The minimum social security contribution for medical cover is 208,18 Euro p/m. (25% less for those under 30, or women over 45).

WORKING TEMPORARILY FOR A UK EMPLOYER
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Anyone who works in Spain for up to a year is entitled to form E128, if the DSS or the Social Security Agency in Northern Ireland, confirm that they and their employer continue to pay UK national insurance contributions. Those employed on a temporary posting, and any dependants who accompany them, are entitled to treatment for ANY condition during the posting, using an E128. However, if they visit a third EU country, they are only entitled to emergency treatment and will need a UK-issued E111.

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

UK nationals who are studying in Spain as an integral part of a recognised UK course are entitled to form E128 for up to two years. They, and any dependants who accompany them, are then entitled to treatment for ANY condition for the period of their course. They should apply to the National Insurance Contributions Office, Newcastle-upon-Tyne. Tel: 0845 915 4811. If the studies are not a compulsory part of a UK course, students are covered by an E128 for up to 12 months. However, if they know in advance that a course will last longer than a year, they are not entitled to an E128.

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
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UK pensioners (anyone receiving an Old Age Pension or a disability pension) who live in Spain will be entitled to receive free medical treatment under the same conditions as Spanish State Pensioners. The UK pays Spain an annual lump sum per pensioner to cover their health costs.
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.

Serious illness or deteriorating health is costly, and the Spanish Health services do not cover the wide range of assistance in the community that 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 £1,000 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
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People of independent means are not normally entitled to state health care here in Spain though there are differences between regions. For further information, those interested should contact their nearest Consulate.

RETURNING TO THE UK

Some UK nationals who have been living abroad for a prolonged period choose to go back to live in the UK. It is important that those in need of long-term care make, or have made for them, arrangements for care before returning to the UK. Entitlement to long-term care services also depends on being ordinarily resident in the UK (previous payment of income tax or NI contributions
does not count). Local health or social services in the UK will need persuading that someone who may be completely unknown to them has any right to scarce local resources.

Spain - Social Security - How much do I pay?

While Spanish social security receives significant State support, it is essentially financed by the contributions made by employers and workers.

Monthly dues are paid in the form of a percentage of the contribution basis. There are different contribution bases, with lower and upper limits for the different groups into which the professional categories are classified. The types of contribution normally vary each year.

In the general scheme, the contribution basis corresponds approximately to the actual salary of the employed person. There is, however, a minimum limit, equal to the minimum wage (SMI) in the case of full-time employment (reduced proportionally for part-time workers), and a maximum limit, equal to slightly more than five times the minimum wage.

RESPONSIBILITY FOR INSURANCE, REGISTRATION AND CONTRIBUTION
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Members of the special scheme for self-employed persons pay contributions only for non-occupational risks. They do not pay contributions for unemployment, industrial accidents, etc, it is vital to obtain private insurance to cover these additional risks. The amount on which these contributions are based is determined by the insured person himself and is subject to minimum and maximum levels as a rough guide you should expect to pay around 240 euro per month. These bases are similar to those applied under the general scheme. The workers themselves are responsible for paying their contributions.

In the case of employed workers, responsibility for insurance rests with the employer. As far as the contribution to social security itself is concerned, the employer pays both his own share and the worker's share, in the same way as he makes deductions for income tax.

There is an exception to this general principle: the employer takes sole responsibility for insurance for risks for industrial accidents and occupational diseases.

Contributing to Spain’s social security scheme will entitle you to free or subsidised medical treatment in the same way as Spaniards. The Spanish public health scheme (“INSALUD” – the Instituto Nacional de la Salud) provides cover for more than 95% of the population, including retired EU residents on a state pension (who hold a residence card). Two years’ worth of social security payments made in another EU country before moving to Spain will also entitle you to some public health cover – collect
Form E106 from your home social security offices and present to those in Spain. EU pensioners and anyone receiving invalidity benefits should obtain Form E121 to present. Social security payments cover about 75% of medical treatment costs in Spain,
the other 25% is payable by you or your insurance scheme.

NIE number in Spain - What is it?
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A NIE number ( Foreign Identification Number/ numero de identificacion de extranjero ) is a necessity in all fiscal or legal matters in Spain. These identification numbers are used to track your financial and official activities in Spain. It is roughly equivalent to the DNI number each Spanish subject is given for national identification purposes. The NIE/NIF always starts with "X" and is
followed by seven numbers and a letter.
Your number is personal to you: it is not transferable and does it expire.

Obtaining a NIE number is quite easy and should be a priority upon arrival. If you do not feel up to the paperwork, you can pay a local gestor and for approximately one hundred Euro ( these charges are fixed by legislation) they will get it done for you. If you choose this option you must sign a power of attorney if you will not be present at the time of application.

NIE Numbers are needed to:
Applying for a business permit
Applying for a driving license in Spain or for an international license
Applying for a mortgage or other type of loan.
Buying or selling property in Spain
Buying a vehicle
Employment
Inheritance of assets in Spain
Insuring Property
Opening a bank account
Paying taxes
Signing onto the national Social Security Health plan

How to get your NIE:
The application process is quite easy. Go to your local National Police Station, to the Departmento de Extranjeros (Foreigners Department) and ask for the NIE application form. The following documents must be submitted to the police station to obtain a NIE number:
NIE APPLICATION FORM ONLINE CLICK HERE

• Completed and signed original application and a photocopy (Original returned)
• Passport and photocopy
• Address in Spain (you can use a friend's)
• Additionally they will ask you why you want the NIE number, possible answers are: "to open a bank account" or to "to buy property."

You are not contacted when the NIE is ready, so it is up to you to periodically check if it is ready. In Benidorm it takes about ten days to process before you will be issued an NIE number, which you collect from the police station. The NIE document is received is an officially stamped, A4 size document, bearing your name, date of birth and your NIE number. Keep track of this NIE registration, as different bureaucratic processes require the original document. Always turn in photocopies - Keep the original in a safe place. Original documents do often get lost so do take note and keeping originals safely.

You can now apply for an NIE number in the UK
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Getting a NIE in Britain

Non-resident property buyers in Spain can apply for a NIE in any of the Spanish consulates in Britain which could save them having to come to Spain a few days and spend many hours in a Spanish police station trying to get to the front of the queue.

Applying at your nearest consulate is more expensive than getting a NIE in Spain but it still may be an advantage non-resident property-buyers.

If you do decide to apply while still in the UK, then you need to get together all necessary documentation and then go to the consulate where you will be asked to complete and sign the NIE application form in front of a consulate employee. Your signature will then be given an official stamp which will cost 25 GB pounds.

You will need the following documents:

- A stamped photocopy of your passport as witnessed and stamped at the consulate 3 recent passport size photos.
These must be plain, and people who wear glasses and or earrings must take them off for the photo An original copy and photocopy of a document which explains why you need your NIE. This can be the a sales contract you have signed with your estate agent, or private vendor, if you are going to work in Spain, the contract. We recommend that you call the consulate beforehand to find out what to take depending on your own circumstances A self-addressed envelope. An envelope big enough to contain all the above NIE application form addressed to the central police HQ in Madrid: Comisaría General de Extranjería y Documentación, Dirección General de Policia, C/ General Pardiñas, 90, 28006 Madrid, Spain:

One the NIE application form with your signature and passport have been stamped, the consulate will send the envelope containing all the above to Madrid. Then you will have to wait and wait for your NIE number which will arrive eventually.

The consulate does not provide NIE application forms but you can download one from here
NIE APPLICATION FORM ONLINE CLICK HERE

There are 3 Spanish consulates in the UK.

The Spanish Consulate
1 Brooks House, 70 Spring Gardens, Manchester, M2 2BQ.
Tel: 0161 236 1233

The Spanish Consulate General
63 North Castle Street, Edinburgh, EH2 3LJ.
Tel: 0131 220 1843

The Spanish Consulate
20 Draycott Place, London SW3 2RZ,
Tel: 020 7589 8989, Fax: 020 7581 7888

Should I have private medical insurance in Spain?
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If you are working and / or you are contributing to the Spanish social security system then you will be covered for most of your health requirements. However the Spanish health care system is paid for mainly by the contributions paid into the system and some things may have to be paid for. You should therefore consider private cover which is very reasonable and offers good peace of mind starting at around 70 euro per month.

Moving to Spain personal taxation

If you are resident in Spain, you will have to pay income tax on your worldwide income and capital gains there. However, Spain has entered into agreements with all other Member States (except Greece) which are designed to help you avoid paying tax twice
on the same income in different countries. So if you earn money in another Member State, you will, depending on the terms of the tax convention between Spain and that country, pay tax on that income either in Spain or in the other country, or pay a portion in both countries. Even if there is no tax agreement, however, Spain's domestic legislation may entitle you to a credit against your Spanish tax liability for any foreign tax you pay.

You are taxable on income you receive during a tax year (the same as the calendar year). Tax is charged at progressive rates, the rate increasing in line with the level of your taxable income. In calculating how much tax you have to pay, you are entitled to
certain deductions and allowances depending on your personal circumstances.

Tax is withheld at source on certain types of income, namely income from employment, self-employment and investments other than real estate. If you are an employee, your employer will withhold tax from your wages at a sliding rate depending, amongst other things, on the number of children you have and your total earnings. If you are a professional person, you are also subject to withholding tax on your income at a flat rate. If you are a businessman or a self-employed professional, you have to file a quarterly tax return and make advance payments on your estimated tax liability for the year. Everyone, provided that their income exceeds a certain minimum amount, must calculate their own tax liability and file a tax return after the end of each year with their local tax office, who will check the calculations to make sure they are correct. The annual return must be filed during a pre-determined period in the year following the tax year which is always announced in advance. Any outstanding tax must either be paid at that time or in two instalments: 60% at the time of filing and the balance by a pre-determined date later that year.

Tax on wealth
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If you are resident for tax purposes in Spain, you are subject to tax on your worldwide assets if your net wealth exceeds a minimum amount. Wealth tax is charged at progressive rates, and you have to calculate your own tax liability, file a tax return and pay the tax during a pre-determined period during the current tax year.

Tax on inheritance and gifts

Tax is payable on lifetime gifts or property you receive on someone's death. This tax is levied for the benefit of the region in which you live. The new same sex partnership laws should be discussed with your financial advisor as these offer financial benefits the same as married persons for inheritance purposes.

Stamp duties

Stamp duties are charged on legal and commercial documents and on certain transactions such as the purchase or mortgage of properties.

Local taxes

Various local taxes are charged by the region in which you live, such as road tax, tax on real estate and tax on professional and business activities.

TAKING UP RESIDENCE IN SPAIN DO I NEED A RESIDENCIA?
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We advise that all residents obtain a residence card even if it is not obligatory for them, as it is easier to carry than a passport, and simplifies many of the other administration procedures for new residents. However, the information below shows who is legally required to hold a residence card.

WHO DOESN'T NEED TO OBTAIN A RESIDENCE CARD?
UK nationals who are Employees, Self-employed, Students. EU national dependants of an EU or Spanish national or pensioners who have worked in Spain and receive their pension from the Spanish Social Security system no longer need to hold a residence card, and can live in Spain with a valid passport.
(Dependants who are non-EU nationals still require a residence card.)

WHO MUST OBTAIN A RESIDENCE CARD?
Pensioners who have retired to Spain, people of independent means and non-EU national dependants of an EU or Spanish national, are still required to apply for a residence card.
They must apply for one of the following two types of 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
All those who wish to apply should submit the application form, available from the nearest Oficina
de Extranjeros, to the local Provincial Police Station (Comisaría de Policía) or Foreigner's Office
(Oficina de Extranjeros). In Madrid this is at C/General Pardiñas 90, along with three passport size
photographs, their passport and a photocopy of the original.
The issue of a card is at the discretion of the Spanish authorities.

Further information is available from the Ministry of the Interior, Tel: 900 150 000

Are my qualifications recognised in Spain?
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Comparability of Qualifications

Academic Qualifications
It is possible to obtain a direct comparison between your qualifications in the UK and those recognised in Spain from the National Academic Recognition Information Centre (NARIC) organisations. NARIC is an international network and is available in each Member State. For advice on the level at which your qualification fits into a Member State’s education system, contact the NARIC office in the country you are moving to. For more details visit: www.enic-naric.net.

The Spanish NARIC is:

NARIC
Ministerio de Educación, Cultura y Deporte
Consejería Técnica de Títulos de la Unión Europea
Paseo del Prado, 28
28014 Madrid
Spain
Tel: 00 34 91 506 56 00
Fax: 00 34 91 506 57 06

NARIC may charge a registration fee for their service.

Vocational Qualifications
The National Reference Point (NRP) is a network of centres across Europe that can help and advise you about the recognition of your qualifications. The UK National Reference Point for Vocational Qualifications is operated by NARIC and acts as a national agency in a European network of reference points for vocational qualifications in the EEA Member States. The UK Reference Point acts as a signpost to the other Reference Points across Europe for those wanting information about the validity of their UK qualifications in Europe. Further information is available from NARIC UK50.

UK National Reference Point for Vocational Qualifications

Oriel House
Oriel Road
Cheltenham
GL50 1XP
Tel: 01242 260225
Website: www.uknrp.org.uk/

Professional and Occupational Qualifications
Top of Page To enable nationals to work in other Member States without having to re-qualify for professional or occupational qualifications, the General System for Mutual Recognition of Professional Qualifications was introduced. The system is operated by means of two European Directives, 89/48/EEC and 92/51/EEC. The Directives cover between them all regulated professions and occupations.

To be eligible for assessment under Directive 89/48/EEC you must have successfully completed a post secondary course of at least three years duration, at a university or establishment of higher education. You must also have successfully completed any
professional training required to enable you to practise the profession concerned.

Directive 92/51/EEC covers those professions regulated below degree level.

The co-ordinator for the directives is:

Félix Haering Perez
Ministerio de Educación y Cultura
Consejeria Tecnica de Títulos de la Unión Europea
Paseo del Prado 28
28014 Madrid
Spain
Tel: 00 34 91 506 56 18
Fax: 00 34 91 506 57 06
Email: Felix.Haering@educ.mec.es

Certificates of Experience
British craftspeople wishing to exercise their trade in other Member States can apply to have their experience certificated under the UK Certificate of Experience scheme. British nationals who require a Certificate of Experience should contact the Department for Education and Skills at the address below for a guidance pack and application form:

Certificate of Experience Office
Department for Education and Skills
QfW2
E3B
Moorfoot
Sheffield
S1 4PQ
Tel: 0114 259 4997
Email: application.coe@dfes.gsi.gov.uk

Applicants will be charged a non-refundable processing charge of £105.

BUYING A PROPERTY SOME DO´s AND DONT´s
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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.

DO

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.

Be aware that should you decide to sell your Spanish property you may incur additional taxes as a non-resident.

DON'T

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.

Further information is available from:

Institute of Foreign Property Owners
(Instituto de Propietarios Extranjeros)
Conde de Altea 33,
03590 Altea (Calpe)
Tel: 95 584 32 12

Association of Spanish Property Owners
West Heath House
32 North End Road
London
NW11 7PT

Renting Accommodation in Spain
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85% of the housing in Spain is private and 15% is rented. Dwellings are made up of 50% houses and apartments 41%. Rented accommodation in cities such as Madrid and Barcelona can be as expensive as comparable accommodation in London. As a guide you should expect in Benidorm to pay 450 euro per month for a one bedroom apartment up to 650 for a two bedroom and 900 for a three bedroom although these rates vary depending how central you wish to live. Most short lets are for six or eleven months which usually suit those who are trying out the Spanish way of life before committing to buying.

Spanish estate agents ‘agencias immoboliarias’ deal with rented accommodation. Rental agencies will charge an extra month's rent in advance and a commission for the agency, which will normally be the equivalent of one month's rent.

A rental contract is a prerequisite to renting any property in Spain. Both short ‘por temporada’ and long-term ‘viviendas’ lets are available. Contracts are drawn up through the standard state-sponsored agreements ‘Contrato de Arrendamiento’ which are available from tobacco shops ‘estancos’. It is the future tenant's responsibility to buy this form.

Many apartments which are part of a block, work on the ‘comunidad’ principle where the sharing of communal facilities are involved such as swimming pools, car park, garden etc. Tenants will have to pay a monthly fee towards the upkeep of these services which is payable locally or may added to the rent.

Almost all properties in Spain are rented furnished and often include electrical goods such as washing machines, fridges etc for which the upkeep and repair costs are met by the tenant unless otherwise agreed.

You are legally required to take out house insurance to cover your belongings and the landlords furnishings.

If you have a complaint concerning your rental agreement, you should contact the nearest `Oficina Municipal de Información al Consumidor’ (OMIC), a consumer information office run by the local government, both for problems concerning a short-term lease ‘por temporada’ or a long-term lease ‘Contrato de Alquiler de vivienda’.

Taxation (VAT) on cars
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1. VAT
The VAT rules which apply when a vehicle is acquired in one EU Member State and is intended to be registered and used in another Member State are as follows:

If you buy a new car, you must pay VAT in the country of destination, i.e. The country where the car is to be registered. This means that the price you pay for a new vehicle bought in a Member State other than the Member State of destination will not include VAT. A car bought in another Member State is considered to be new if it is less than six months old or has travelled less than 6000 km.

If you purchase a second-hand car (i.e. Is more than six months old and has travelled more than 6000 km), VAT is payable in the country of purchase.

In any event, since 1 January 1993 the Member State of destination no longer has the right to levy VAT on personal effects introduced from another Member State by an individual transferring his normal residence. This applies also to vehicles.

Tax on cars in Spain

A) VAT

The rate of VAT payable on purchases of cars in Spain is 16%.

B) OTHER TAXES

If you are living in Spain, you will also have to pay the following taxes in addition to VAT: excise duty on certain means of transport, which is paid when the vehicle is purchased (12% of the value of the vehicle);
registration duty (PTA 8 650); the tax on mechanically powered vehicles, which is payable periodically and is based on the
vehicle's taxable horsepower.

CHANGE OF RESIDENCE
A) VAT

If you are changing residence, you will not be liable for any VAT on arrival in Spain.

USEFUL ADDRESSES

MOTOR VEHICLE TAXES

MINISTERIO DEL INTERIOR
Jefatura Provincial de Tráfico
C/ Arturo Soria, 143
28027 Madrid
España
Telephone: 91 3018500
900-123505 (Llamada gratuita)

MINISTERIO DE HACIENDA
Dirección General de Tributos
Subdirección General de Impuestos Especiales y de Tributos Sobre el Comercio Exterior
C/ Alcalá, 5
28014 – MADRID
Tel: 91 595 82 43 – 595 82 44
Fax: 91 595 85 58

CARS

IMPORTATION AND REGISTRATION
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UK nationals who are not residents may bring their car into Spain, but neither they nor anyone else can use it in Spain for more than six months in any one year. Anyone who spends more than a total of six months a year in Spain is considered resident, and so not entitled to this.

IMPORTATION

The procedures relating to importation are complex. The motoring associations in Britain, and the Real Automóvil Club de España can provide guidance, but the authoritative source of information is the Directorate-General of Customs in Madrid. (Dirección General de Aduanas en Madrid, C/ Guzmán el Bueno 137, 28003 Madrid. Tel. (00 34) 91 553 02 00, Fax. (00 34) 91 553 52 42.)

VEHICLE REGISTRATION

Non-residents can only register vehicles in Spain on temporary tourist plates, valid for a six-month period in any one year, and renewable annually. If non-residents become resident they must obtain full national plates and pay the Impuesto Especial of 12%, which is based on the car's ready-reckoned value. (Non-residents from outside the EU are exempt from the Impuesto Especial).

Residents importing a vehicle must register it with the local authorities and obtain Spanish national plates. They should surrender the British vehicle's Registration Document to the DVLA in the UK and obtain a certificate of permanent export (V561) from them to present in Spain.

Road worthiness certificates for right-hand drive cars are available from Spanish ITV (MOT) centres. Some adjustments to the vehicle may be needed to comply with EU regulations.

Purchase of new cars in Spain is subject to 16% IVA (VAT), payable the first time a car is bought and registered. When the car is sold on in Spain, the Impuesto de Transmisiones (Transference Tax) of 4% must be paid.

Traffic Regulations require that the following items be kept in the vehicle:

Set of bulbs and tools necessary to replace them

Two warning triangles - officially approved by the Ministerio del Interior, bearing a round symbol E9 and the code 27R03

Spare tyre and the tools necessary to replace it

A reflective jacket

A spare pair of glasses (for those who wear spectacles to drive)
A fine is payable if these are not carried.

Real Automóvil Club de España
c/ Eloy Gonzalo 32,
28010 Madrid.
Tel.: 91 594 72 33/ 91 594 72 43

WHAT TO DO IF YOU HAVE AN ACCIDENT OR ARE ASSAULTED
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All persons who have been assaulted or in an accident must report the incident to the Police. This is called making a denunica, and is required by law for all cases, ranging from bag snatching to more serious crimes and accidents.

HOW TO MAKE A DENUNCIA

Denuncias can be made by phone in Spanish and English, by calling 902 102 112, as well as on the Internet in Spanish at www.policia.es/denuncias/entrada . Otherwise, they can be made at the nearest Comisaría de Policia.

If necessary, and in major incidents, the Police will provide an interpreter.

National and International schooling options in Spain?

For British families moving to Spain, to continue your or your child’s education, there are two main possibilities. Firstly it is possible to study within the Spanish system in Spanish and the second option is to study at an international school, where it may be possible to follow either a UK or international curriculum.

The best source of additional information on all aspects of education in Spain is the European Commission PLOTEUS portal: www.europa.eu.int/ploteus. The PLOTEUS portal provides information about the educational system and learning opportunities as well as further contacts and background information about moving to Spain.

State education is free to all children resident in Spain. School attendance is compulsory between the ages of six and 16, though children often attend state pre-school before the age of six. The families of children in state education are expected to pay the costs of schoolbooks, which are only free in exceptional cases.

Pre-School
Pre-school education is available up to six years and is divided into two groups, up to three years and from three to six years. This stage is not compulsory, although the central government will guarantee the existence of a sufficient number of places to ensure schooling for those who request it.

Education
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The reformed ‘Educación Primaria’ is aimed at six to twelve year olds and is divided into three cycles each of two-year duration. The cycles are for pupils aged six-eight, eight-ten and ten-twelve.

The new compulsory curriculum includes Language (Spanish & Autonomous Community Languages) and Literature, Maths, broad based Environmental Science, Art, Physical Education and Religion (the latter is optional for pupils). Study of a foreign language is compulsory from the age of eight i.e. in the Second Cycle. A form tutor teaches all subjects except music, physical education and a foreign language which are taught by specialist teachers. At the end of each of the three cycles that comprise primary education, and as a result of an ongoing evaluation process, a decision is to be made about whether or not to promote a student to the next cycle. A student can only be held back once during primary education.

The Compulsory Secondary Education ‘Educación Secundaria Obligatoria’ curriculum is organised into two two-year cycles (first cycle and second cycle). The first cycle (between 12 and 14 years old) contains a common curriculum. The compulsory subjects are: Natural Science, Physical Education, Visual Education, Social Studies, Geography and History, a Foreign Language, Spanish, the Regional Language, Literature, Mathematics, Technology and Music. Religious Education must be offered but it is not compulsory for students to take Religious Education. The second cycle is for students between 14 and 16 years old. In the final year of this stage, pupils must choose two subjects from four subject areas: Natural Science, Visual Education, Music and Technology. Some optional subjects such as a second foreign language must be offered. Classical Culture must be provided in the second cycle. After compulsory secondary education students can choose to enter upper secondary education.

Higher Education
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Higher education is offered in ‘facultades universitarias’, ‘escuelas técnicas superiores’, ‘escuelas universitarias, institutos universitarios’ and ‘colegios universitarios’. University education is divided into three cycles; ‘Ciclo básico’, or ‘primer ciclo’, ‘Segundo ciclo’, or ‘ciclo de especialización’ and ‘Tercer ciclo’ or ‘ciclo de especialización para la investigación y docencia’.

The first cycle of university studies lasts for three years. It is offered in ‘Escuelas Técnicas Superiores’, ‘Escuelas Universitarias’ and ‘Facultades’. After the first cycle students can continue through to the second cycle, culminating in the awarding of a first degree. First and second cycles together take between four and six years depending on the field of studies. After successful
completion of the first and second cycles, students can take the third cycle in order to obtain a Doctorate. This takes at least another four years.

International Schools
It is also possible to study in English at private International Schools in Spain. A small number of schools follow a British curriculum. Others may teach in English and follow an international curriculum or offer the European Baccalaureate. For details contact the European Council for International Schools:

ECIS
21 Lavant Street
Petersfield
Hampshire
GU32 3EL
Tel: 01730 268244
Website: www.ecis.org/

Can I live in Spain if I only speak English?
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You want a straight answer YES you want a truthful answer NO

You can live quite happily in Spain with just a few basic words, however if you want to really LIVE in Spain and be part of the Spanish way of life and make some great Spanish friends then you must learn Spanish. You will miss out on 90% of the true way of life if you decide not to learn the language.

You can get by living in the ex-pat community and you can earn a living running a business geared towards just the English speaking community and tourists, BUT you will have a much smaller circle of friends and more importantly a much smaller business if you are unable to serve and welcome Spanish people in your business. You should at least consider employing a Spanish speaking member of staff and ensure you put your price lists and menus in Spanish first and English second. You will be
surprised how many Spanish customers will visit you if you welcome them in this way.

Become competent in Spanish, or improve the competence you already have. Opportunities to study Spanish at university level are available at: www.ucas.ac.uk/ and information about shorter or part time courses is available from www.learndirect.co.uk/

Why do businesses fail in Spain?
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1) The basic idea is wrong.

2) Start-up capital was too low.

3) Capital is wasted.

4) A lack of hard work.

5) A lack of business / financial knowledge.

6) A lack of common sense.

7) No ability to deal with a people: suppliers, customers, employees,
local authority, language problems.

8) Poor pricing ( too high or low).

9) Ignorance of local authority and government requirements or
restraints.

10) Taking the business lightly after completion.

11) Thinking you on holiday

12) Prefer to go to the beach

13) Opening to suit your lifestyle not the business needs

Which of these is the most widely experienced?

Experience in the service and food industry tells me it's numbers 1 and 2 with number 5 coming right behind (financial knowledge). Although number 11, 12, and 13 are also all too common.

Too many business start-ups are emotion based rather than conceived after a detailed study of the market and very deep self examination especially when starting a business in Spain where emotion rather than pure business is the main reason for wanting to go into business to realise the dream of living in Spain. Take it form one who knows living and working here is harder and takes longer hours than in the UK

So many small businesses in Spain fail because owners never even bother to budget income and expenses. The most common sign of this is Beer a euro a pint when the operating costs are 1500 euro per month - it just does not make for a good income to expenses budget. You may think low priced beers that generate a 50 cents a pint gross profit will make money but the nett profit is likely to be ZERO after taking the operating costs from the 50 cents gross profit.

Not understanding costs is a shortcoming for most new business owners.

The least understood aspect of business is the real cost of stock and wage costs against productivity.

What are true wage costs then?

If you employ someone or pay yourself 10 euro per hour you should in general multiply this by 3.5 to get the real cost.

For example you or a member of staff will only be productive for 70% of you time in any working day therefore adding 3 euro per hour to the productive wage costs. Add to this productive hour the cost of rent, rates, utilities, licences and incidentals you will likely be looking at a cost of 30 plus euro per hour. This is the true cost per productive business hour ( the hours you are open)

Another blind spot is the relationship of every cost item to revenue. If you are operating a 70% gross profit business ( about correct for food and licenced trade) then for every 30 euro you spend you must make 100 euro revenue. Therefore you pricing policy must match you expected gross profit.

Be prepared to keep costs low and keep shaving them daily even saving a euro a day will make a difference to your bottom line and will mean your gross profit is easier to attain.

How much will it cost to buy a business in Spain?
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This of course depends firstly on your budget and how much you have to spend.

Secondly the costs associated with buying a business can vary depending on which type of business you are buying such as a sole trader business or a company.

The majority of buyers are looking to purchase a bar or small restaurant as a sole trader in which case you should be looking towards costs of around 10% on top of the purchase price for legal fees, licences and incidentals. This is where many purchases then go wrong as you will require on top of this enough capital to ensure the business operating costs can be met during your
first months trading.

As with any new or take over business the settling in period whilst you find your feet and find your market can mean that the business operates at a low profit or even a loss for some months. This is not always the case but it should always be planned for in you budget as a shortage of capital is the number one reason for failure during the first six months of trading.

Therefore when setting your budget you should look at ensuring you have enough capital on top of the purchase price and fees of at least six months rent, and working capital ( stock, fixed monthly costs etc) for three months.

As a guide you will be looking at this much working capital on a purchase price of a small bar for 50,000 euro with a rent of 1,000 per month with an expected turnover of 6,000 per month.

Six months rent 6,000 euro Stock purchase 5,400 euro approx 30% of turnover Fixed costs 2,000 euro Electric, insurance, performing rights etc

Why so much?

As much as you may plan for every eventuality, Spain is your new country, you are in a new business, and learning the way things are done in Spain. By ensuring you have enough Capital to cover minor and major problems you will ride out any unexpected storms. The bonus of course is that you may not need all or any of this capital but it would be unwise not to budget for this.

For an example of an unexpected Storm and these things can happen.

Mr A buys a bar
In the first two months all goes well and the bar turns in a good 4,000 euro profit, which Mr A after his living expenses is left with 1,000 euro capital in the bank. After a day off Mr A returns to find his bar flooded with water, only to find that the drains to his bar are blocked having collapsed overnight.
After seeking professional advice he is told that the entire bar floor is going to have to be excavated and the drains replaced which will take one week at a cost of 4,500 euro plus the lost revenue and profit during the closure. In addition the fixed costs and rent still have to be paid.
Two weeks later Mr A has closed due to lack of working capital even though he has a profitable business

What is a Notario?
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Notario (Notary public)

The Notary acts as the official when signing the public deeds, he / she places on public record through the title deed the sale and ownership of a property and / or mortgage loan agreement. He is obliged to ensure that current legislation is fulfilled and to defend the interests of the parties, in particular the borrower’s interests. It must be signed in his presence and it must be clear that it is understood by both parties.

What is the Registro de la propiedad? (Land Register)

The Land Register contains all acts, contracts or legal charges referring to a property, such as ownership or encumbrances. Registro de la propiedad is also the local department responsible for maintaining the Land Register. After the escritura (title deed) has been signed it will be sent to the local land registry office. It will be entered onto the register and the land registry fees will be paid. Your solicitor will make pay the fees and when the completed deeds are ready he will arrange to have them sent to you.

What is a Hipoteca?

A legal charge which is entered in the Property Register when a real estate property is assigned as collateral for a mortgage loan.

Buying Property in Spain - Legal Terms Glossary
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When buying a property in Spain you will come across many new legal terms. This glossary will help explain them in brief for you.

You MUST always use a qualified professional as we cannot guarantee the accuracy of the information contained in this glossary. It is intended as guide only to help with understanding

A
ABOGADO: Lawyer, solicitor
ACTA NOTARIAL: Notary´s certificate. Document giving details of the given property to be added into the land register.
ACTA DE NOTORIEDAD: procedures for registration in the land register.
AFECCIONES REGISTRALES: charges against a property in the register
ARRAS: secured deposit - if an ‘arras' is arranged, the reservation agreement is drawn up in a way that the purchaser understands that they will forfeit the deposit or the seller will pay back double the amount if either fails to complete the deal.
ARRENDAMIENTO DE OBRA: a contract for construction with a builder

B
BOLETIN DE ENGANCHE: certificate for the correct installation of electrical wiring – a legal precondition for getting connected to electrical power.

C
CANCELACION: note of cancellation for charges against a property in the land register
CERTIFICACION: certification
CERTIFICADO BANCARIO DE DEVISAS: Certificate of the bank that the price of purchase was paid with money of known origin (required as part of money laundering legislation)
CERTIFICADO FINAL DE OBRA: Architect certificate confirming the construction has been completed in compliance with building regulations
CODIGO CIVIL: civil law
COLEGIO OFICIAL DE ARQUITECTOS: Official College of Architects
COMMUNIDAD DE PROPIETARIOS: Community of Property Owners, which manages the building
or development. A new owner becomes a member of the owners community.
CONTRATO DE ARRENDAMIENTO: rental contract.
CONTRATO DE OPCION: contract of option giving the right to purchase a certain property usually
paying 10% of the property price.
COPROPIETARIO: part owner of a property in a community or joint owner of a house or land.
CUOTA: Percentage that the owner has in a community or jointly owned property or land.

D
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DECLARACION DE OBRA NUEVA: Notarised declaration of new building works.
DELEGACION DE URBANISMO: District Surveyor's Office – Who grant building permits
DEMARCACION DE COSTAS: Department for Coastal Protection - ensures compliance with coastal environmental and protection planning rules and regulations.
DERECHO DE RETENCION: Right of retention. The right of a party to a contract to retain an amount in case there is a default on the contract. Such as six months rental on retention.

E
EDIFICABILIDAD MAXIMA: maximum floor area that can be built
ESCRITURA: Title Deeds to a property or land:
Escritura de Compraventa - This document is signed by the Notary and shows who is purchasing a property.
Escritura Publica - This is the official document which shows that you are the legal owner, usually taking a few months after completion to be sent to you.

F
FIANZA: Deposit, security
FINCA: Property, plot of land
FINCA REGISTRAL: Registered property or land

H
HACIENDA PUBLICA: Tax Office
HIPOTECA: Mortgage

I
I.B.I (IMPUESTO SOBRE BIENES IMMUEBLES): Similar to council tax or rates
IMPUESTO DE ACTOS JURIDICOS DOCUMENTADOS: Stamp duty (1 % of the purchase price)
IMPUESTO DE TRANSMISIONES PATRIMONIALES: Transfer tax on property 7% of the amount declared in the Escritura IE title deeds.
IMPUESTO SOBRE CONSTRUCCIONES, INSTALACIONES Y OBRAS: Local tax on building works
IMPUESTO SOBRE EL PATRIMONIO / PLUSVALIA: Local tax on capital gain of real estate
IMPUESTO SOBRE SUCESIONES Y DONACIONES: death duty, inheritance tax and gift/donation tax
IMPUESTOS MUNICIPALES: Local government taxes
IMPUESTO SOBRE EL VALOR AÑADIDO (IVA): Value Added Tax (VAT) - usually 16% maximum
IMPUESTO SOBRE LA RENTA A PERSONAS FISICAS (IRPF): Income tax

L
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LEY DE ARRENDAMIENTOS URBANOS: Rental law (long term not holiday rental)
LEY DE LA PROPIEDAD HORIZONTAL: Law relates to communities and gives legal rules for apartments, groups of homes and urbanisations.
LICENCIA DE OBRAS: Licence to build

N
NIE (NUMERO PERSONAL DE INDENTIFICACION DE EXTRANJERO): ID number for non- residents
NIF (NUMERO DE INDENTIFICACION FISCAL): ID number for residents
NOTA SIMPLE INFORMATIVA: Extract from the land register
NOTARIO - A state appointed official who notarises public documents such as marriage, divorce and property purchase. He/she is only there to make sure that a contract is legally correct. The notary does not have either parties' interests in mind, only the legitimacy of the documents but they must be satisfied both parties understand the documents.

O
OBLIGACION PERSONAL: Unlimited tax obligations for residents
OBLIGACION REAL: Limited tax obligations for non-residents

P
PARCELA: Plot
PERITO: Valuer / Assessor
PERMISO DE OBRA NUEVA O DE CONSTRUCCION: Building permit fro new building
PLAN PARCIA A development plan
PLANTA: Floor Planta Primera = First Floor
POSESION: Possession
PRECIO: Purchase price
PROCURADOR: Representative at court in addition to a lawyer (like a barrister)
PROMOTOR: Developer
PROPIEDAD: Property
PROPIETARIO: Owner

R
REFERENCIA CATASTRAL - Land Registry document relating to the property location.
REGISTRO DE LA PROPIEDAD: Land Register

S
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S.A. (SOCIEDAD ANONIMA): PLC
S.L. (SOCIEDAD LIMITADA): LTD
SEPARACION A LINDEROS: Minimum distance of a building to the neighbouring property
SERVIDUMBRE DE TRANSITO: Right of Way (if there is no direct public access to the property)
SOLAR: Building plot
SUELO NO URBANIZABLE: Green belt protected land
SUELO URBANIZABLE: Areas of land that may be built on - not green belt
SUELO URBANO: Urban area

T
TASA: Local tax on a building permit
TOMA DE POSESION: Handing-over the keys
TRASPASO: Transfer of rental or lease contract.

U
URBANIZACION PRIVADA: Private property
USO DE OFICINAS: office use permitted
USOCAPCION: Right to use property for a fixed time period
USUFRUCTO: Right to use and enjoy a property " quiet enjoyment "

V

VALOR CATASTRAL: Rateable value reviewed annually and the base for calculating land tax.
VALOR COMPROBADO POR LA ADMINISTRACION:
Assumed value of a property as a base for the property tax
VALOR REAL: Real value

Z

ZONA DE SERVIDUMBRE DE PROTECCION:
Protected coast stretches where there are specific rules concerning construction. These are areas along developed coastal areas where spaces are kept free of building usually around 200 meters wide.

CAN UK BENEFITS BE PAID IN SPAIN? (SOCIAL SECURITY)
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Those who are entitled may be paid a British State Pension, Widow's Benefit and a War Disablement Pension whilst resident in Spain. Those in receipt of Mobility, Attendance, Disability, and/or Invalid Care Allowance before 1.6.92 may be able to arrange for their continuing payment whilst living in Spain as well. The International Pension Centre will handle all enquiries.

With the exception of those mentioned above, benefits are not generally transferable abroad. This includes UK Income Support and Housing and Council Tax benefits, which are only payable to residents in Britain.

British citizens who take up residence in Spain usually have no entitlement to Spanish benefits.

There is provision for a very basic form of Income Support to help the destitute, but applying for it could affect an expatriates right to residence which is normally dependant on establishing that they have sufficient resources to live in Spain without becoming a burden on the State.

International Pension Centre,
Department for Work and Pensions,
Tyneview Park,
Benton,
Newcastle-upon-Tyne.
NE98 1BA.

Tel.: 00 44 (0)191 213 5000
Fax: 00 44 (0)191 218 3389

www.dwp.gov.uk

How do the new smoking ban laws in Spain affect my business?
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Here is a rough guide to help you comply with new smoking laws.

You must display a sign clearly indicating that smoking is permitted or not permitted. If you are a business that has to offer smoking and non-smoking areas these also must be easily identified. Whilst the first official inspection visits will be to assist business owners to comply with Spain's new smoking ban / regulations fines will apply in future and these vary from 30 euro up to 600,000 euro.

Bars and restaurants larger than 100 sq metres must have designated smoking areas which can only be a maximum of 30% of floor space. Smaller establishment can choose to either become smoke-free or if they allow it, they must exclude anyone under 18 years of age. You will find your official size on the top of your licence if you are unsure of your square metres. The sale of tobacco is also now restricted to official tobacco shops, therefore it is now illegal to sell cigarettes from bars even if you have the official licence as these are now void. Even if you only operate a business from an office on your own you may no longer smoke as this is a workplace you must go outside.

For weeks, government officials have been advising Spaniards ringing in with queries about the tough new anti-smoking law, which came into effect on January 1st. One question, however, defeated them: “What about the ’cigarette afterwards’ for customer or prostitute in brothels?” This one has puzzled officials who still have to clarify the law. On the one hand, a room inside a brothel is a “private space”. On the other, it is a “workplace” where a tough smoking ban now applies across Spain.

Spain once regarded as a smoker’s paradise is turning into one of the strictest anti-smoking regions of Europe, banning smoking rooms in all places of work and public buildings. The new law effectively allows smoking only in the open air or at home and, with strict restrictions, in bars and restaurants. Smokers are far from certain where they stand.

What about video booths in sex shops? The answer: “The ban applies, because this is an area open to the public.” What about bull-fighting arenas? “No ban, as long as the arena is open-air.”

Last week saw ashtrays rounded up and removed from all government and other offices. From now on, anyone wanting to smoke must do so out on the street.

And major companies like Telefonica have warned employees that this will be possible only during their official breaks. Restaurants more than 100 square metres in area must now have smoker and non-smoker areas clearly marked and in eight months at the latest must have installed dividing walls.

Owners of smaller restaurants and bars must simply decide whether they will be smoking or non-smoking establishments. The main association representing Spain’s licensed trade says around 90 per cent of bars have opted to be for smokers. However, if the remaining 10 per cent find that the non-smoking policy is proving profitable, then their number can easily double by the end of the coming year, a spokesman said. In hotels, around 70 per cent of rooms will be designated non-smoking areas.

A special exemption rule has been made for prisons, where inmates clearly are unable to go out onto the street to smoke. Smoking will be allowed in designated cells and banned in the rest, while inmates will be categorised as either smokers, non- smokers or “tolerant passive smokers”.

The new law applies throughout Spain, except for Majorca and the other Balearic Islands. The regional government in Palma has simply refused to accept it, claiming its own law is already even stricter. Here, smoking and non-smoking zones are already in place even in smaller bars and restaurants. But the Madrid government is unconvinced about their effectiveness, as there will be no strict rule about building dividing walls

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Bars, Restaurants and Busineses for sale Spain