It is no secret that a high percentage of Spain’s British population are retirees who decided to make a big change in their old age.
Affordable property, low living costs, a beautiful climate, entitlement to healthcare and one of the friendliest ex-pat communities in the world, it’s no wonder so many people are choosing to make the move!
How much does it cost to live in Spain?
As long as you aren’t going overboard, it is cheaper to live in Spain than it is in the UK. Given the fact that most ex-pats rely on their finances which are stored in a UK bank (more on that later) the monthly cost goes up and down based on the exchange rate.
You will also find council tax (IBI in Spain) is far cheaper (usually around a quarter of the amount you pay in the UK). Utilities also cost around the same as the UK. Your electricity bill might experience a slight rise during the summer when you’re using your air conditioning, but that’s only for a few months in the year.
You will also find amenities like public transport, and groceries are cheaper in Spain!
What about my pensions and savings?
As we have already mentioned, many ex-pats will choose to keep their UK bank accounts and have their pension paid into that account. The other option is to open a Spanish bank account and have your pension paid into that account. With both options, the only downside is you have no control over the exchange rate used for the transfer.
Many expats prefer to use the services of a currency transfer specialist. They can transfer the pension from your British account to your Spanish account at a better rate than the usual transfer. Some currency specialists allow you to fix your exchange rate for future transfers meaning you won’t constantly need to check their currency.
Healthcare
British people in receipt of a UK State Pension are entitled to free healthcare in Spain. This is due to the UK and Spain being members of the European Economic Area (EEA), which allows for benefits such as free healthcare.
You will need to apply for an S1 form from the International Pension Centre. Once you have made the move to Spain, you will then need to take the form to your local Instituto Nacional de la Seguridad Social (INSS) so that you can become eligible for registering with a doctor.
It’s also worth noting that once you have the S1 form, you can return to the UK for NHS treatment at any time.
