UK sterling has given up almost a cent against the euro this week, as the ONS (Office for National Statistics) tells us Britain contracted -0.1% more than previously thought in Q4, to a total –0.3%. Obviously enough, this has stoked concerns the UK might re-enter recession in 2012, and in fact the OECD (those cheery fellows!) have already made this prediction. Bright side for Britain Fortunately, on the flip-side there are plenty of economists who accuse the OECD of doom-mongering here, and indeed UK performance in 2012 has been pretty solid so far. Both the manufacturing and services sectors expanded these past 3 months, while exports also enjoyed a solid increase. This suggests the UK … [Read more...] about Pound slips on surprise UK GDP downturn
Expats
The myths about renting property in Spain
However, for some, there is an alternative. Renting is now the new buying. It seems like everyone is doing it and whether you want to upgrade, downgrade or just try a new area, it can be the solution to a sluggish market. It can also be a worry. Stories of terrible tenants and unlucky landlords bounce around the forums. It seems that everyone knows someone with a cautionary tale to tell. Of course, what you don’t hear as often are the success stories where it all came together with a happy ending. For those considering the renting option, let’s dispel a few myths first. Here are some of the snippets of conversation you might here at your local: Myth: ‘Tenants have all the rights in … [Read more...] about The myths about renting property in Spain
UK pound to euro exchange rate stable as outlook darkens
The UK pound kept close to the 1.20 mark against the euro this week, as economic data in both the UK and eurozone points to a difficult road for 2012. In particular, in the UK retail sales dropped a precipitous –0.8% last month, signalling that consumers are no more confident in their prospects, while the coalition government borrowed more than twice as much as forecast. In Europe meanwhile, attention has turned to Spain and Italy, where crucial labour reforms are being debated, while spluttering manufacturing output points to a deepening recession. UK retailers on the back foot UK retail sales declined double the expected rate last month, falling –0.8% compared to the -0.4% forecast. … [Read more...] about UK pound to euro exchange rate stable as outlook darkens
Who’s who in the Spanish property buying minefield
Because of this it is worth seeking the advice of professionals. That doesn’t mean that everything will always go smoothly, but usually at least you have a method of complaining if it doesn’t. The variety of professionals available to help can also be rather confusing. Here we’ve compiled a little glossary to help you with the titles of the legal and financial people that you might need to use. Abogado – The abogado is a Spanish lawyer - a trained professional who can check the legal status of your documents, carry out inheritance instructions and complete the usual kinds of tasks you would expect of a solicitor in the UK. Notario – The notary is a public official who does not act on … [Read more...] about Who’s who in the Spanish property buying minefield
Inside a Spanish school
I had been fortunate to make contact with Tina Sánchez Alfocea, an English teacher at the school. Tina had been enthusiastic about my request to visit, meet her students and ask her some questions. I wanted to see for myself what the inside of a Spanish secondary school looks like and test out some of the anxieties that parents of foreign students have. If you have been following this series of features you will know that many British and other expat parents find themselves in a dilemma. Should their children attend an international school or enter the Spanish system? For some there isn’t an option. The fee-paying alternative of an international school can be well out of bounds. However, … [Read more...] about Inside a Spanish school
Pound to euro unchanged on mixed UK-EU outlook
The pound to euro exchange rate remains unchanged at 1.20 this week, as a series of economic releases indicate that growth in both the UK and Eurozone will be hard-won in 2012. In particular, credit rating agency Fitch has threatened to slash the UK’s triple A credit rating, while in Europe, European Central Bank president Mario Draghi has pointed to the competitiveness gap between northern and southern members as the next big hurdle. Looking ahead, it looks as though the pound-to-euro rate will remain tethered inside the 1.1750-1.20 range established at the outset of 2012, unless a disaster in either Britain or Europe tips the balance. In the UK, pessimism has flared as rating agency … [Read more...] about Pound to euro unchanged on mixed UK-EU outlook
An important decision – making your will
In Spain there are four levels at which ISD (inheritance tax) is paid: Level 1 = Children and grandchildren (including adopted) under the age of 21 Level 2 = Children and grandchildren over the age of 21, spouses and parents Level 3 = Other relatives such as brothers and sisters, in-laws, cousins, aunts and uncles Level 4 = Everyone else including unmarried partners If you are not married, your partner is relegated to the ‘any other person’ level of inheritance tax. Being Spain, it does vary for residents between autonomous regions. So, for example this rule applies in Valencia but not in Murcia. It is certainly worth establishing what rules apply to you as it affects both the … [Read more...] about An important decision – making your will
Education in Spain, an international alternative
According to every school I asked the response was… think again! If your child is young enough then it is likely that they will pick up Spanish quickly and integrate well into a Spanish school. However, if they are older or have special needs the outlook is much less favourable. But what if you are already here and your child hasn’t settled or you have a very compelling reason to move? International Schools are an established alternative to Spanish state education. Dotted across the country, they teach the UK national curriculum in English and enable young people to study ‘A’ levels which are still the main currency needed for entry to universities in the UK. Of course, they are … [Read more...] about Education in Spain, an international alternative
Pound to euro stable as central banks hold rates
The situation in Greece especially has topped the headlines this past week, and had the potential to send the euro into meltdown had it not turned out so well. The Greek government conducted a debt swap, aimed at getting bondholders holding more than €200bn in Greek bonds to change their bonds for ones worth 75% less. Had they refused, Greece would have been refused its €130bn EU bailout and been forced to default, prompting the much-feared contagion across Europe. In the event though, Greece’s creditors decided that triggering a financial apocalypse was not perhaps in their best interests, and more than 95% accepted the deal. Cue much jubilation among Greek and European Union public … [Read more...] about Pound to euro stable as central banks hold rates
Avoiding double taxation in Spain
At this point you are no longer a non-resident property owner paying imputed income tax but a Spanish resident making an annual income tax declaration in May/ June. The taxes paid in the current year are for your income the previous year. So, for example, if you make a declaration in May/June 2012 it will cover your income for the tax year January 2011 to December 2011. If you were previously living in the UK there is an exception – employment tax is currently deducted in the UK. The tax brackets in Spain will change next year but are currently 24%, 28%, 37% and up to 43% for incomes over €52,360. If you are a UK tax payer and are trying to do the right thing and pay your taxes in Spain … [Read more...] about Avoiding double taxation in Spain