Living in Spain is generally considered a smart move for British expats who want to leave their current state of residence. In Spain, they get to enjoy the same British feel to life at a lower cost of living compared to other European countries.
Statistics show that about 309,000 brits expats live in Spain with over 100,000 of them aged 50 and above. This figure puts Spain as the most popular country for British expats, followed closely by Ireland.
What does living in Spain really entail?
Beyond the beautiful visuals and romantic atmospheres, you have to consider how living in Spain truly affects its residents, its pros and cons, and what steps to take at the right time. Living in Spain means getting new accommodation in a perfect location for you, finding a job, and easing down to its everyday activities. Living in Spain can also mean regularly going through sites like OpinionesEspana to determine which company to patronise and which not to based on the honest reviews left there by different users.
One factor that is mostly overlooked and highly required from the early stage is the financial implication of moving. This factor involves a lot of details about bank entities, bank accounts, and even the bureaucratic position of the new city being moved into. A simple step that will save you from making bad financial decisions is by getting proper financial advice.
Basic actions on which your money planning should be based are;
• Income to expenditure ratio
• Tax payments
• Banking activities
Income to expenditure ratio
Having a steady source of income is very beneficial to every resident in any state. It helps with proper financial prediction and planning. The major goal is to ensure that you do not spend more than you earn. Furthermore, it will also help to properly manage sudden cases of emergencies.
One step to managing emergencies is by ensuring that you have an ‘emergency fund’ stashed up somewhere to help in cases of unforeseen circumstances at a short notice. It is advised your emergency fund should have at least 6 months’ worth of earning that is easily accessible.
This should be done only after you already have your emergency funds stashed up somewhere. Investing requires you to plan for the future with the little you have now. It involves you finding out legit means by which you can save up and earn profitable interests on your capital, other than your normal bank accounts.
Taxations in Spain are highly dependent on the underlying structures and are unique to each region asides from the national tax regulations. As such, careful deliberations should go into the different tax policies in different regions before deciding on a region to stay.
This will save you from incurring an unexpected cost in cases of sudden occurrence. Find the best policy available in your region and stick with it.
Asides from these few points mentioned above, things like planning your retirement plan ahead should also be in your financial goals. This financial advice is not useful only in Spain, but also for any other European country.