The Fine Print of Retiring to Spain

Spring in Spain is one of the most awaited seasons in the country. Especially after iron hand rule of a dictator, the country is undergoing an overall renaissance. Though there are still many internal issues facing the current government, Spain has been able to maintain a vibrant cultural and artistic life in the new millennium.

One of the most appealing aspects of a life retiring in Spain are the four seasons the country enjoys. The country is located on the Iberian peninsula, with spring enjoying mild and occasional rain while autumn has mild sunny days. When winter comes along, there are the warm beaches on the Costa del Sol or the mountain ranges for snow based activities for the whole family.

Another aspect of retiring to Spain that should be cause for concern is the tax system in the country. Taxes are based on residency, which is determined when you spend more than 183 days in Spain. Taxes are imposed on income and capital gains and residents are also taxed for inheritance and gift taxes. As an expat, you need to find out if there is an existing double tax treaty between your home country and Spain. This helps in the retention of income and personal wealth of an individual when in Spain. The Expat Forum has detailed the taxes that can be imposed, namely:

* employment income,
* all compensation received for personal services,
* salaries and wages,
* payments for certain business-related expenses,
* pensions,
* housing allowances,
* other allowances paid in cash or in kind.

The public health system in Spain is good but it is best to have health insurance to be able to access the Spanish private health sector. This is because the private sector has better services which include the ability to converse in English. There are also many options available to individuals as to health facilities and the specialist to look after them. The costs differ according to the situation and condition of the individual.

As for property prices in Spain, the market is currently in a state of flux as prices began to fall due to the worldwide credit crisis. This has been assuaged though by a boom in the construction industry and there has been significant growth as a result of strong demand. Aside from this boom, the current government working together with business leaders have undertaken measures to counteract any fears of a market collapse and this has been able to prop up the market despite the current recession.

Finally, the cost of living in the country should also be one aspect of retiring to Spain that needs a second look over. Overall, the country still ranks lower compared to many European Union countries. Do remember that where you situate yourself in the country determines the individual's cost and standard of living. Another secret is finding the best and cheapest places to purchase your needs to be able to stretch your finances. Better yet, first pay a visit to Sunny Spain to fully realize the beauty and splendor of choosing to retire in Spain.

This article has been provided by Jose Marc Castro, the online editor at the Expat Forum.com - the primary online community for expats. The site also provides information and advice on matters such as Retiring to Spain.

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