| Living in Spain |
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Mutterings - putting rumours to rest The earthquakes last week got me to thinking that I have no idea what you are supposed to do in the event of an earthquake (except pray!) and I was obviously not the only one as I had a couple of calls on the very same subject. So I thought I would have a look at what the experts say and share that information with you. Let’s just hope we never ever need to use it! Before that though some more advice this time with respect to the weather. Of course July and August are the hottest months of the year normally and this year is certainly no exception. The heat can become a problem though if you do not take the right precautions and this applies particularly to the young and the old. I was reminded of this last week when I saw some very exhausted looking people hauling themselves wearily through Torrevieja one afternoon. On top of the heat it has been extremely humid which only adds to the feeling of tiredness. If the body gets too hot you can begin to experience heat exhaustion. This occurs when the normal process of sweating is insufficient to cool the body. This can happen after very strenuous exercise or in very hot weather. High humidity slows down the evaporation and hence cooling from sweating. The symptoms of heat exhaustion can be some or all of the following, excess sweating, nausea and vomiting, feeling light-headed or faint, tiredness, headache and muscle cramps. If the symptoms are not addressed the condition can become more serious leading to heatstroke which is when there is a complete breakdown in the body’s cooling mechanisms. Heatstroke can lead to patients falling into a coma and is a condition which needs medical attention to put right. If you experience the symptoms of heat exhaustion or someone around you does then move them or yourself into a cool shady place or room, remove clothing and drink water and slightly salty drinks. Do not drink alcohol and do not do any strenuous exercise. If you suspect heatstroke then seek medical attention immediately. Remember babies, children and the old are most at risk during these times so look out for them in particular. The best measure of course is prevention so avoid spending too much time out in the direct sun; keep the blinds down on windows; drink plenty of water regularly; avoid alcohol; eat light meals of fruit, salads and vegetables; avoid strenuous exercise and take cooling showers. Remember the good old Spanish custom of siesta and take time out particularly in the hottest part of the day – follow their example after all they have lived with the summer heat for a lot longer than most of us. On to earthquakes; as I write this column it is San Emigdio’s day and he is the patron saint of earthquakes. I have had a few quiet words with him that we can do without any more of those tremors we suffered last week thank you very much. They are definitely not good for stress levels, but what should you do if the worst happens? I consulted several sources on the subject and the advice is ‘Drop, Cover and Hold On’. It’s easy to remember and what it means is the following if you are inside when the quake starts. Drop to the ground; take cover by getting under a sturdy table or other piece of furniture; and hold on until the shaking stops. If there isn’t a table or desk near you, cover your face and head with your arms and crouch in an inside corner of the building. Stay away from glass, windows, outside doors and walls, and anything that could fall, such as heavy light fittings or furniture. Stay in bed if you are there already. Hold on and protect your head with a pillow, unless you are under a heavy light fixture that could fall. In that case, move to the nearest safe place. Use a doorway for shelter only if it is in close proximity to you and if you know it is a strongly supported, load bearing doorway. Stay inside until shaking stops and it is safe to go outside. Research has shown that most injuries occur when people inside buildings attempt to move to a different location inside the building or try to leave. Do not use any lifts. If you are outside then stay there. Move away from buildings, streetlights, and telephone poles. Once in the open, stay there until the shaking stops. The greatest danger exists directly outside buildings, at exits, and alongside exterior walls. Perhaps surprisingly ground movement during an earthquake is seldom the direct cause of death or injury. Most earthquakerelated casualties result from collapsing walls, flying glass, and falling objects. If you are in a car or vehicle then stop as quickly as safety permits and stay in the vehicle. Avoid stopping near or under buildings, trees, overpasses, and overhead cables. Proceed cautiously once the earthquake has stopped. Avoid roads and bridges that might have been damaged by the earthquake. Staying inside a building assumes that the building is capable of withstanding a reasonable shock. If you find yourself in a structure that is likely to collapse bringing a heavy ceiling down on top of you then it would be better to get outside following the general advice above of staying clear of anything that might collapse on top of you. This advice is taken from the FEMA website. FEMA stands for the Federal Emergency Management Agency an American organisation. Their motto is "A Nation Prepared." Its goal is to insure that America is able to prevent, prepare for, respond to and recover from disasters, whether they are natural or manmade. Just remember the simple slogan ‘Drop, Cover and Hold On’. Paul Mutter |
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Live Spain for Life . . . and fully informed Thoughts on the Property Market It has been a really hectic time for me just lately, It all seems to happen at once, a few clients completing and needing help with setting set up their health care and obtaining padrons and of course the new Residence certificates. On top of this I have been working endlessly getting my new website to get as up to date as I can ….and to be honest and I feel very lucky, as I am still busy! The property market has slowed down and many property agents, on the coast, especially, have closed their doors. Maybe it’s the change in people’s views and that some people are now happier to move inland away from areas where there are so many ex pats an holiday makers, as for some it’s not like living in Spain in some areas?? More than likely we can blame the rate of the euro for much of this! However there are many factors and whatever they are some people are still coming to Spain to live despite this. There are families that have planned this move for a long time and are so far down the line that is that cliché or is it a TV programme, there really is no going back! So their budget is possibly lower, but they are still coming! I remember when we were planning our move nearly 6 years ago, we were quite close at one stage and I suddenly stopped in my tracks, I was petrified, I thought Oh my god! What are we doing! The thing that got me through this stage was that the alternative…staying put in a country and in a business where we were unhappy, was in fact, so much worse than the apprehension of stepping into the unknown new life that lay ahead of us…. So here we are. What is really happening though with the property market now in 2008 and what effect it is having on some of us ex pats a few years down the line from when we bought here? In my opinion and this is just an opinion! Before I get an ear bashing off someone who knows better! I think some of the reasons (forgetting not least all the obvious overbuilding) is that some people who bought a few years ago when prices were much higher are now finding themselves when having to sell on for whatever reason. That they are struggling to obtain a price they have been expecting and that’s if they can get any offers! add to this the state of the euro and it is looking a bit bleak for many. It’s this demand rather than the actual value that sets a price and what someone will pay for a property when demand is high is more often than not a higher price than the actual market value. Because of the demand a few years ago people have too high an expectation of what they can get for their property now. I am not saying it’s the property owners that are at fault as sometimes it’s others who have given them this false hope in the first place. Lets face it if we were told this year we can expect 50,000euros less for example than we could have expected last year, we then feel we have lost it somehow, even if we never really had it in the first place. It happened to us in the UK…twice, we lost once in the property market and we won the next so it’s not something confined to Spain! Look at statistics. Perhaps it would be wiser to get a proper valuation from a bank, and not always rely on a valuation by a sometimes unqualified person; many people that are giving valuations or opinions, which is what they so often, are, are not often qualified to do so. A valuation is often only one person's opinion (of course there is a strategy, with a bank valuation, a price on land and buildings but this often alters due to economical climate as well) The true value is what someone will actually pay for your property at that particular time, this is the demand and value theory. You cannot really say what someone will pay for a property at anytime in the future as there are so many situations that change and alter peoples ideas. The price which can be agreed at the time depends on the way the market is, the individual situation and that of course can change in the course of time depending on many factors not least being the mortgage rates and again the economical climate and in addition the need or wish to sell and at what point and how desperate the need, again to buy or sell? Many properties that are on the market in this particular area, I cannot speak for other places, have been so for maybe two years or more. Is this because demand is not as high or are they overpriced, or is it a bit of both? Whatever it is prices are coming down! Is it enough? A proper bank valuation to ascertain a more realistic value could stop sellers and buyers from being too disappointed in the long term, when for example, they have an offer or accept and offer, only to then be told by the bank that the valuation is not enough for the mortgage the buyers need! The then potential sale falls down leaving everyone very disheartened. Banks are getting much tighter now, in fairness to them they have to… they don’t really want the properties that owners cannot afford to keep so they reduce their risk and lend less. Low valuations by the bank are especially common with country properties on rustic land. In addition many people also apply for mortgages with proof of income from their country of origin, so what happens if they move here without that earning potential, what if their current situation changes, what then!! Next week we will follow on with this topic and the effects, in the meantime if you have any questions related to living here in Spain especially in connection with relocation please feel free to email me at sharon@livespainforlife.com in the meantime have a great week and don’t forget to check on the site www.livespainforlife.com for regular updates on all aspects of living here. I would really appreciate being told anything that you feel I may have missed. www.livespainforlife.com Phone: 0034 618 364 956 Direct line from the UK Local rate call 01158 226 441 or Email me @ sharon@livespainforlife.com |
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Moniz . . . your personal consultant Dear Chris, Income tax returns are fast approaching and my question is, do I have to submit a declaration if I do not have Spanish income? Thanks, Michael. Chris replies: Non-fiscal residents are liable to pay tax on any income arising in Spain only, such as money deposited with Spanish banks, a property rental in Spain, or income derived of any business. Property owners are taxed on their property income, the tax base is the property catastral value (valor catastral), which can be found on any IBI receipt. The tax base rate is 25% of a 2% of the mentioned value better known as Property Wealth Tax (Impuesto sobre el Patrimonio y sobre la renta de no Residentes modelo 214). Fiscal Residents who have completed form FD9 to apply for UK income tax exemption by requesting such application via the Spanish tax office (Alta en la Hacienda) as a Spanish tax resident, individuals are liable to pay Spanish tax on worldwide income which includes UK state retirement and other pensions and interest earned on deposit accounts in the UK or offshore. General allowance 5.200 euros Age allowance (65+) 6.000 euros (75+) 6.300 euros Disablility allowance 2.000 euros – 7.000 euros depending on the degree of incapacity Since the introduction of the Residency Certificate in April 2007 and in order to proof full residency in Spain a Fiscal Residency Certificate is now required to show permanent residency when carrying out transactions at any public Notary. Those not in possession of this document involved in such transactions will be treaty as non-residents and pay corresponding tax as such. Chris Moniz Moniz Consultants are able to offer fiscal representation and submit tax declarations, further information can be obtained by booking an appointment on: 96 548 7000 www.monizspain.com |