How Much Money Do You Need To Retire In Spain?
Do you feel like there is nothing that is keeping you in the UK? Well, if you have already retired from work and are looking for a place to spend quality time for the rest of your life, Spain is a good option. Hundreds of UK residents move to Spain after retirement. This is mostly because it is a beautiful country with a lot to offer the aged population. If you are considering retirement in Spain, then you are definitely interested in knowing the numbers. For instance, how much money will you need to retire in Spain?
The Average Cost of Retiring In Spain
Although we can’t put a definite amount on the cost of retiring in Spain, the average you will need is about £25,000 a year. This price translates to £2,000 per month. This estimate guarantees a comfortable life in Spain, which includes periods of luxury living. You can also survive in Spain with £15,000 to £20,000. However, it will limit your experience in this country. For instance, you will have to watch on costs and spend less. You might also be forced to reside further from cities.
The good news for retirees, life in Spain is a bit cheaper compared to the UK, according to Mark Stotts, chief marketing officer of Javea.Properties, an International property consultancy based in Spain. The prices of commodities are lower, and so are the taxes. You could have to file for some taxes, such as the Spanish Income Return, especially if you will be residing in Spain for more than six months in a year. In some cases, the income tax will also apply if your income originates from the UK.
In Spain, there is the IVA Tax known as Impuesto sobre el Valor Añadido. It is similar to the Value Added Tax and is imposed directly on items. If you are considering retiring in Spain and are confused by the tax situation, it is always advisable to work with a financial expert that will help you figure out the details.
Housing and Healthcare
If you are considering retiring in Spain, you must set aside some money for housing and healthcare. The cost of accommodation will vary on where you decide to settle in and the property you wish to reside in. For those opting to rent property in Spain, you can expect to pay £700 a month for a one-bedroom house in one of the big cities. However, if you go further from the cities, you could pay £350 for a similar property. If you are considering spending most of your retirement life in Spain, it is best if you buy property instead of renting it. You can see if you can qualify for a mortgage loan.
The Spanish healthcare program is quite lucrative. You can qualify for this program as an expat retiree as long as you sign up as a resident or employee who pays social security. That aside, you can also get healthcare from private insurance, which costs around £150.
Residency in Spain also comes at a cost. If you are looking to reside temporarily here, you should get the long-stay visa. It is more beneficial compared to a tourist visa. This is because it gives you the privilege to work, study, or retire for an indefinite period. Some of the requirements are that you must prove the ability to support yourself in Spain by having at least $2,500 and living in Spain for six months to maintain your visa. The application for the visa is likely to cost you $200.
Spain is a great country for you to spend your golden years. The environment is serene, the cuisine is healthy and tasty, and there is a lot of things for you to explore. Although it may seem affordable, it is best if you make lots of savings for you to enjoy a hiccup-free retirement in Spain.