Spending Money in Spain|Spanish Currency Transactions

Moving to Spain - Money and Currency Transactions in Spain

The Currency in Spain is the Euro

Banks in Spain
As a general rule, banks in Spain are open from Monday to Friday from 9.00am -14.00pm and on Saturdays from 9.00am to 13.00pm; however, in summer they may close a little earlier. Nevertheless, in my experience, many Spanish banks will be willing to stay and deal with your queries after closing time, as long as you have arrived there before 14.00.

Many banks in major Spanish cities have employees who speak English and can cope with all international transactions. You can choose to wait to talk to these employees if you find the Spanish language a problem. However this is not always the case. If you are moving to Spain, it would be well worth asking your local estate agent or gestor which local banks provide this service as this could save you a lot of problems later on. Learning Spanish is one thing; learning Spanish banking language and regulations can be quite another!

When you move to Spain it is good to note that most Spanish banks offer an internet service, where you can choose your language of transaction and undertake most transactions on the internet. Many Spanish expats find this service invaluable.

When using Spanish banking services, please remember that you will need to show your passport to the bank cashier, so have it with you at all times. In fact, it is mandatory throughout Spain to carry your passport (or, if you are living in Spain, your residencia) at all times.

If you wish to change foreign currency for Spanish Euros, you will be charged a commission on the transaction. Together with the cost of exchange rates, this can prove expensive. However, in many Spanish tourist areas you can find shops and offices who will exchange currency. Often the exchange rate and commission is favourably comparable to those offered by Spanish banks, so it’s a good idea to bear this in mind if you are staying in or moving to a tourist area in Spain and have brought foreign currency with you.

Being Paid in Spain
When moving to Spain, you may still be employed by a UK, or other nation company or have a foreign pension paid into your Spanish bank account. This can also prove costly, especially if you are paid by cheques in foreign currency, as you will not only be subject to the vagaries of the exchange rate, but foreign currency cheques can carry an extra charge in Spanish banks. It would therefore be a good idea before moving to Spain, to ask your employer, or pension company, if they could pay you in Euros. This is often not possible, but it is certainly worth asking.

Using Credit Cards in Spain
Most major credit cards are accepted throughout Spain, however, as in many countries, the establishment where you pay using your card may put a limit on the amount you can pay or charge you extra for the transaction.

Using Cash Machines in Spain
Most towns in Spain (and even many villages) have ATMs (cash machines) and, although you will be charged for each transaction, it may be worth using these rather than your credit card on some occasions. Most ATMs have instructions in a number of different languages as well as Spanish, so they are easy to use.

One thing to note about ATM machines in Spain. Some of these are in locked cubicles just inside the lobby of the bank when accessed outside of Spanish banking hours. You will need to swipe your card across the door lock to open it. Some Spanish banks accept all cards in their locks, but others only accept cards belonging to the banking company in question. When moving to Spain it would therefore be a very good idea, not only to ensure that you know where to find a nearby external (unlocked) ATM machine which accepts all credit cards, or where the nearest locked cubicle is which will take your credit card. This is really important, as Spanish banking hours are not only short, but Spanish banks also close for many public holidays and local fiestas and it could be many days before you find a bank open again.

Taxes on Purchases Made in Spain
As in the UK, tax is charged on most purchases in Spain. Spanish purchase tax is known as IVA (Impuesto al Valor Agregado) and varies between 7% and 33%, depending on the purchase made. Food, wine and basic living necessities are taxed at 7%, most other goods and services are taxed at 16% and luxury items including jewellery and cigarettes are taxed at 33%. As I write, the Spanish Government is considering lowering the tax on fuel in Spain, owing to nation wide protests, but it’s early days on that one...

Buying Property in Spain
When considering moving to Spain and purchasing Spanish property, you need to be aware that you can be hit by fluctuating exchange rates. As I write, the value of the Pound is lower in relation to the Euro than it has been for a long time (1 Pound will get you 1.248 Euros). If you have already planned how much your property is gong to cost, you need to take account of this. If Stirling falls any more against the Euro, your Spanish property will cost you more. Of course, if the opposite occurs, your Spanish house will cost you less.

It is obviously better to err on the side of caution and allow more money for your purchase of property in Spain to cover fluctuating exchange rates. It would also be a good idea to use a currency specialist to find you better exchange rates. I you think you can judge the market, or your currency specialist is able to do so, it would be profitable to buy your property when rates are best for you, or agree a fixed price based on an exchange rate with the Spanish estate agent or with your Spanish bank.

I hope all this has helped you iif you are considering living in Spain or travelling to Spain. A little foresight about Spanish currency, banking, purchasing and exchange rates, can make Moving to Spain so much easier.

Is now the right time to buy Spanish property?

If you are living in Spain or in the UK, you most probably will have read that Spanish property is declining in value and that the Spanish housing market is at a standstill right now. How should that affect your decision about moving to Spain and buying property here? In fact, is now the right time to buy Spanish property?

Well, if you are thinking about selling up in the UK, investing all your money in Spanish property and moving to Spain, then you need to be absolutely certain that you have thoroughly researched all you can about Spanish life and culture and that you, and all of your family who are moving out with you, will not only be happy moving to Spain, but that you will have enough cash (and/or a steady job) to provide for them when you all live here.

If you plan on keeping your house in the UK, but have some spare cash to buy a holiday home in Spain, or a home for your future retirement, then the option is still open to you to buy Spanish property.

What you do need to think about, however, is that the prices of property in Spain may still fall for a while and it could take several years for the property market to pick up again.

This is why, whatever your reasons for moving to Spain, you do need to think very carefully about all aspects of living and working here, particularly the cost of living in Spain (not much different to the UK) and whether you can honestly afford it, plus other details about Spanish life and culture, which have been discussed in previous articles on About Moving to Spain.

I say this because, if you sell up everything to move to Spain, or use all the spare cash you had put by for your retirement home in the sun, you may not be able to sell that property at a profit for a number of years. You do not want to be stuck in Spain without a job or income and without enough money to move back to the UK.

Many expats living in Spain love Spanish life and would never want to go back, so this would not be a problem for them, but you do have to take these considerations into account.

But the fall in housing prices in Spain is not all bad news for people who want to move here and live as expats, particularly if you have some spare money to invest in Spanish property.

If you take a look at property markets over the years, house prices rise for some time, then you have a recession and property values drop. This is happening in Spain right now. But property markets are cyclical. When house prices fall, they rise again. It is just that this time, in Spain as in other countries, they may take longer to rise than they did in the past.

If you want to move to Spain in the future, wait a few months in case property values fall a little more, and then purchase your Spanish home for future use or holiday lets. You will get it at a very good price and if your Spanish home needs renovating, as many do, you should be able to negotiate a good price with a Spanish (or perhaps a good expat) builder, as they will be looking for work.

In fact, for anyone thinking of investing in Spanish property, a few months from now could be a good time to buy your villa in Spain at a very good price. And when Spanish property prices rise in a few years time, you could have a very good investment on your hands and a home in the sun which cost you a lot less to buy and to renovate than it would have done a year ago.

Buying property in any country takes research and a great deal of thought. Property speculation is always a gamble and Spanish property is no exception. But it seems to me that this is a gamble that could well pay off. But only if you have the spare cash to do so after all other savings for the future are accounted for.

And even if you do not have the spare cash to invest in Spanish property right now, but still want to move to Spain, then why not keep your home in the UK, let it out to pay your mortgage costs, and rent a house or apartment in Spain?

Rental property in Spain is cheaper than in the UK and you will have a good choice of Spanish villas, houses and apartments to rent. This will give you the time to see for sure whether you and your family want to move to Spain permanently or whether, after experiencing your life in the sun, you are not so sure that Spain is still your choice.

Even when property prices fall and markets are unstable, with research and consideration, you can still make your move to a new Spanish lifestyle. It's just that you have to be even more careful at these times when you make your decisions about moving to Spain.

About Moving to Spain - Buying Property in Spain

Anyone thinking of moving to Spain has to think about where they are going to live. Are they going to rent a Spanish house, flat or villa, or are they going to invest in Spanish Property. When you ask expats how they went about moving to Spain they will give you different advice.

Some will tell you to begin by renting property in Spain. This makes sense if you are not sure about the area you have chosen to live in or just want more time to look around Spain before you make up your mind.

Renting a property in Spain is also an excellent idea if you haven't purchased your Spanish property yet. It gives you time to get to know some Spanish builders (most Spanish houses will need some form of renovation, unless you are prepared to pay a great deal of money for something that has been renovated just for sale).

Renting a property in Spain is also an excellent idea if you have purchased a Spanish property which is undergoing renovation. By living nearby you can keep an eye on the renovations and make sure that the work is being carried out to your satisfaction. You will also be on hand to deal with any little glitches in Spanish bureacracy will may well occur along the way.

However, the majority of people moving to Spain are still buying Spanish property as their first move. House prices in Spain are on the increase, but they are still much cheaper than in many other places in Europe, the UK or USA, so buying your Spanish house, flat or villa does make sense. So what are the best ways to do this?

Things to look for when buying property in Spain:

• Take your time looking at Spanish properties.
  

• If you are doing your search for Spanish property from outside Spain, one of the best places to look is on the internet. The website Kyero is very good. It has thousands of Spanish houses, flats and villas and many places to rent as well. You can also find many Spanish properties for sale or to rent at your local estate agents. Some even specialise in this. However, you will find inflated prices here. Nevertheless, if you prefer to have most of the viewing arrangements done for you and are prepared to pay a great deal more for this service, then this could be your best bet.

• Whichever way you chose to buy your Spanish property you will need to spend some time in Spain on the purchase. You will also most likely find that you need to spend more time looking at property than you had estimated. So set yourself some dates when you and your family can visit Spain for several days and then make your arrangements to view the properties you have chosen before you arrive there. Many estate agents - Spanish and foreign, will be able to make accomodation arrangements for you if you wish, but this of course will mean you are expected to spend your time viewing their properties. It is often better to make accomodation arrangements yourself.
  

• When you arrive in Spain you will most probably be shown a whole host of properties as well as the ones you expressed an interest in. Spanish estate agents often advertise a small number of their properties on the foreign market but have a lot more on their books. Some will be well worth viewing; others will not. I would say it is worth viewing all that is on offer, as the bargains have often not been advertised. So, take time to view as many different Spanish houses, flats and villas as you possibly can.

• Use a number of different Spanish estate agents. You may find that the Spanish villa you have set your heart on is up for sale with a number of different agents at different prices. You can strike up a reasonable bargain this way.

• Have a list ready of things the property must have. For instance, if you have pets and young children you will most likely want to have a garden where they can play. Many Spanish houses do not have this luxury, so if you need that outdoor space, you will either have to buy a Spanish house with a garden or have this as part of your renovation plans.

• Have a list ready of all the things you consider essential for the area you live in. For example, to live in rural Spain you will need a car, but you need to consider other members of your family who do not drive, so check out the local bus service. That Spanish mountain villa may seem perfect in its isolation, but what happens if there is no access to public transport? Would your whole family be able to cope with this?

• Do not be pushed into purchasing your Spanish property too quickly. The house may have been on the market for months or even years, but it is very unlikely the estate agent will tell you that. In most cases you can take a few days to make up your mind.

• Make sure you have your NIE numbers and your Spanish bank account before you even begin your search. In order to sign official property purchase forms you will need both.

• Get yourself a good lawyer, but look around first. There are many English speaking lawyers in Spain, but some will charge you the earth for their service. Ask around - perhaps on expat forums, there are many on the net. If you are already renting a Spanish property, ask your neighbours. It's surprising just how helpful Spanish people can be (especially if you try to communicate with them in Spanish). In my experience they are much less likely to rip you off than a local expat businessman, so it's definitely worth a shot.

• When you find the Spanish property you want to buy, make sure your lawyer checks out all the property details. He or she has to ensure that the vendor has the sole right to sell the property. You do not want to find yourself with his relatives on your doorstep demanding their Spanish home back.

• If you are buying a newly built or extended Spanish property, ensure that your lawyer checks that all building works have been carried out according to local and government regulations. New properties in particular have been cause for concern in Spain for the last couple of years. Many companies have built whole estates on land which was not regulated for building. People have lost their homes as a result. Your lawyer will know this. Make sure he does a thorough check and shows you the details. You do not want bulldozers to come along and ruin your Spanish life in the sun.

• If you are buying a Spanish property to renovate you will probably need to employ a builder or project manager. Check him or her out. Ask about him on expat forums. Ask him about work he has done in the area and go and talk to the house owners when he is not about. Ask the locals if they have seen him around the area. Spanish village gossip can tell you almost anything you need to know. If this seems unnecessary, let me tell you it is not. There are many builders and project managers in Spain (mainly from the UK) who are not legit and will rip you off. Personally, I would employ a Spaniard to do the work, they are usually more reliable and they know the local building regulations and materials. However, I realise this may be daunting if your Spanish isn't very good. Either way, please check them out, or else you could regret it.

If all of the above seems like a daunting task, but you still have your heart set on moving to Spain, then please don't let this put you off. Spain is a great place to live. Most people are very friendly and helpful here, but moving to a different country always has its risks. If you are well prepared, these can be diminished quite a lot.

I hope these have been some helpful tips about moving to Spain and if you have read this far then I guess you are keen on making the move. From my personal view it is well worth it, so I wish you luck in your move to Spain and great joy in your Spanish property. And for now, hasta luego.