Spain is Brits favourite

September 5, 2010 – 11:11 am

Spain and Canary Islands Brits favourite spots

Spain and Canary Islands. Brits favourite spots

If you are looking to up sticks and spend your golden years somewhere warmer, check out Standard Life’s new list of the world’s top five retirement hotspots - but before you jump on that plane, be warned that a life abroad may leave you less well off than staying in Blighty thanks to pension woes.

 

 

Spain is the country that most Brits would like to retire to, due to it’s warm climate, outdoors lifestyle and the proximity and ease of getting back to the UK.  There is a crucial point to consider before heading off for sunnier climes - namely money and whether you will actually be able to afford the retirement you are dreaming of.

Andrew Tully, Senior Pensions Policy Manager, Standard Life said, “Retiring abroad is a dream for many people but without careful planning and advice, things can potentially go wrong very quickly.”

If you move abroad permanently, any increases in your UK state pension will only apply if you are living in an EU country (including Gibraltar and Switzerland), or a country with a reciprocal social security agreement with the UK. So, while your friends back home in ol’ Blighty may be enjoying double the level of state pension that you are getting after 20 years.

If you choose to move outside these countries, the amount of UK state pension you will receive each year is frozen at the amount initially paid when first claimed - or if you emigrated more than one year after payment began, at the rate in force when emigrating). Popular retirement countries outside these reciprocal agreements include Australia, Canada, New Zealand and South Africa.

Mr Tully added, “One significant consideration before you move is to think about your state pension and what, if any, reciprocal agreement is in place.  If there isn’t a reciprocal agreement in place, then you need to be very careful your retirement income is sufficient to cover your living costs over a long period of time.  Over a 20 year retirement, your basic state UK pension could halve in real terms if a reciprocal arrangement is not in place.”

If you are considering retiring abroad in the future, but are wondering if your retirement savings will be sufficient, Standard Life has launched www.getarealitycheck.co.uk, where you can check if your plans are on track.

Top tips for retiring abroad

Seek independent financial advice before making plans about future pension provision or transferring your pension overseas.

Check what reciprocal basic state pension agreements are in place with the destination country, if any (check with the Department for Work and Pensions).

Inform your social security office, HM Revenue and Customs, and the Department for Work and Pensions when you move and provide your contact details abroad.

You can get a forecast of your state pension by completing a BR19 form or go to www.thepensionservice.gov.uk.

If already overseas, complete form CA3638 or call The International Pensions Centre on 0191 218 7777.

Check your state pension age (SPA). For women, the SPA is rising from 60-65 between 2010 and 2020, with further rises to 68 currently expected to take place by 2048, although the coalition government may accelerate these changes.

Find out about welfare rights abroad.  Some UK benefits are not payable outside the UK, others apply only in the EU or in countries which have agreements with the UK.

Tell your bank, building society and any other financial institution that you have a policy or agreement with them and are moving abroad.

Contact your local council to let them know when you are leaving and leave a forwarding address.

Find out more about healthcare costs in the country you want to move to.

Inform your GP and dentist you are moving, and consider private healthcare.

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do | Tagged , , , , , , , , | Comments (0)

Final month left to claim CGT charges or lose them.

July 17, 2010 – 10:47 am

Final month to get the extra CGT back for purchasers in TenerifeSpain is on cloud nine after winning two of the biggest sporting gongs in the world, but there is a rather more pressing matter for them to deal with - at least for the Brits who sold a property in Spain between 1997 and 2006 - who have just one month left to begin claiming back capital gains tax charged illegally on the sale of their home.

The Spanish Government illegally charged British people more than double the amount of Capital Gains Tax, (CGT) they owed on their properties between 1997 and 2006. The poor Brits who had chased the sun to Spain in search of sea and sangria were forking out a whopping 35 per cent under the ‘non-resident’s income tax’ bracket. Spanish nationals residing in similar homes were paying the proper rate - just 15 per cent of any capital gains. The overcharging is estimated to have raked in more than £350 million for the Spanish Government.

In 2009, following much outcry from British owners of Spanish properties and an expose by a group of Spanish lawyers and a UK based currency specialist, the European Court of Justice (ECJ) ruled that the tax contravened European Community Treaty rules against discrimination. They agreed that any UK or EU citizen who sold a property in Spain between 1 January 1997 and 31 December 2006 could claim back the excess charges.

Now, those affected by the illegal CGT charges have just a month left to make their claim or face losing out on the chance to get back what is rightfully theirs. All claims must be finalised and settled by the end of October this year - as August is considered to be a holiday month in Spain, sellers have just one month left to kick off their claims, which can take up to three months to be realised.

The average amount of money being recovered is around £15,000, so it is more than worth checking if you are eligible for a refund. More than 500 British families have already been successful with their claims.

Even if you have tried previously to recoup the money and not been successful, lawyers are saying that a second try is most definitely worthwhile as some of the rules governing eligibility have changed - indeed, the European Court of Justice have recently opened new legal actions allowing claimants to make a second attempt.  The industry  estimates that there are still thousands of Brits who sold Spanish properties during the eligible time period who haven’t come forward. So if you bought a property in Tenerife, the Canary Islands,  or mainland Spain, get that claim in pronto!

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized, Weather | Tagged , , , , , , , , , , | Comments (0)

Trim the costs of owning a property overseas.

May 14, 2010 – 4:25 pm

Over a million Brits currently own a home overseas, with France and Spain being the most popular destinations. However the global economic slowdown has hit homeowners not only at home, but also abroad as the cost of maintaining a property has increased -over a fifth of owners (21%) are struggling to meet the increased costs, according to latest research from a currency firm.

Trim the cost of maintaining your property in Tenerife by following a few simple steps

Trim the cost of maintaining your property in Tenerife by following a few simple steps

85% of overseas property owners say the cost of maintaining their property has gone up in the last 12 months, so you should attempt to reduce the cost of being an overseas property owner.

 

 

Whilst mortgage rates may have gone down for many owners, the overall cost of owning a property overseas (including local taxes, utility bills, maintenance costs etc) has continued to grow and the rising costs of ownership have been magnified by sterling’s depreciation and the continued market nervousness over the hung parliament following the General Election  Many homeowners are also seeing their rental income from a holiday home hit, as the number of potential tenants decreases with more people opting for ‘stay-cations’ in their home country. 

Two years ago the average overseas home owner transferred £10,000 a year to meet maintenance costs (including overseas mortgage payments) and provide spending money when they visit their second home. However as the pound has taken a beating against all the world’s major currencies, they now have to convert significantly more in order to meet the costs associated with their international property such as maintenance costs, mortgage payments, utility bills and local taxes. 

For example, in October 2008, £10,000 would have bought you €12,900.  To receive the same amount of Euros today, a Brit has to transfer £11,896, almost £2,000 more.  People making regular currency transfers should set up a Regular Payment Abroad plan with a currency broker  such as Moneycorp that allows you to lock into an exchange rate for up to 12 months ahead so you know know exactly how much is being transferred every month.”

According to the research, almost 70% of holiday home owners are missing out on vital income by not renting out their overseas property. Almost half of those that do rent it out only do so to friends and family who traditionally pay less than other tenants.

Overseas home owners have to pay ongoing taxes on ownership, such as local taxes or even tax on rental income.  This is usually payable in the country where the property is located, but if you are a UK resident, such income also needs to be recalculated into Sterling and is taxable in the UK, regardless of where it is paid, with any appropriate relief given in the UK for taxes paid abroad. Each country will tax the income according to its own rules, so sometimes more allowances are available abroad than in the UK or the tax rates abroad may be lower, but the higher tax liability will be due.  However, there may be ways of reducing your tax bill, but whatever you do, you only pay tax when you make money. Spending money unnecessarily to save tax can often be a false economy It is important to make sure that you claim whatever allowances you are entitled to.

People who take advice before buying their property abroad often manage to make their purchase more cost-effective than those who buy without taking advice so you should at the very least check the advice of a reliable estate agent.  

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , , , , , | Comments (0)

A good result for sterling in the property market.

February 21, 2010 – 12:08 pm

The value of overseas properties owned by Brits actually rose by more than £2.6bn, according to research. In many countries, the devaluation of sterling against the local currency was greater than the drop in property prices.

Sterling exchange rate means a profit for British property sellers in Tenerife and Spain

Sterling exchange rate means a profit for British property sellers in Tenerife and Spain

Property prices fell across much of the world last year, but looking at property in France, Spain, Portugal, Italy and the US. In France, for example, where prices declined by an average of 6.63 per cent in 2009, the Euro gained 13.22 per cent against the pound, giving an estimated 98,000 British owners an average gain – in sterling terms – of £10,373 per property. In Spain the fall in prices was even greater, but British owners are still looking at a profit in sterling terms. .

 There has been a lot of volatility in the currency markets recently and many expect this to continue. This is having a huge impact on the value of property owned by British people abroad and in many cases it is more influential than price changes in the local property markets.The research also highlights the need to get your timing right with overseas property purchases, and to consider forward foreign exchange contracts, as opposed to relying on spot prices

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , , , | Comments (0)

No place like home?

December 21, 2009 – 4:30 pm

The strong euro has changes plans for those living and wishing to live in Tenerife and Spain

The strong euro has changes plans for those living and wishing to live in Tenerife and Spain

It seems there really is no place like home. New research has discovered that UK expats are returning home in their droves as the weak pound has sent the cost of living in the Eurozone soaring.Over the last year, there has been a huge rise in the number of expats living in Europe looking to return home to the UK.

Research  for home-movers, has seen an uplift in demand for removal quotes from those expats wanting to relocate back to the UK - a big turnaround from the exodus of Brits in recent years to enjoy warmer climes and cheaper property prices elsewhere. The number of people requesting quotes to move to the UK has increased by 37 per cent, while there has been an 18 per cent decline in the number of people moving from the UK to the continent in the space of a year

Spain has  seen an exodus in the past year, with a 39 per cent increase in the number of quotes to move to the UK. Traditionally the most popular haven for British expats seeking to retire in the sun, Spain has suffered from a devastating property crash, leaving many owners with depleted equity and high living costs due to UK pensions being paid in pounds not euros.

Many expats have had their dreams shattered by the current economic crisis and are finally realising that they can no longer afford to live in Europe with the weak pound. For those who kept their options open by retaining a property in the UK the situation is not so desperate but for many who sold up completely and are now unable to sell their European home, their only option is to rent back in the UK.

We have seen a sharp decline in the number of people moving out to the continent in the past twelve months as a result of the weakening pound and stretched finances in the UK. This has resulted in many would-be expats putting their aspirations of retirement in the sun on hold until the markets recover.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized, Weather | Tagged , , , , , , , , , , , , , | Comments (0)

Brits struggle with foreign languages when on holiday

November 20, 2009 – 4:34 pm

A new study by online travel service travelsupermarket.com has revealed that more than half of British people going on holiday abroad refuse to make any effort to speak the local language. The reasons behind our laziness to learn the local lingo often include an assumption that ‘everyone speaks English anyway.’

rits struggle with foreign languages when overseas

Brits struggle to use foreign languages when overseas

We Brits are not usually known for being proficient with foreign languages though we love to travel to far-flung destinations, we are often not prepared to embrace the local language alongside the culture.

 

Many feel the problem with languages is having the confidence to try speaking in a language they are unfamiliar with,dreading getting the accent completely wrong and supplementing the word they are looking for with another word that means something else entirely. The assumption that foreigners will always speak English is definitely one most of us are guilty of making. 

The Travelsupermarket.com survey also found that 45 per cent of respondents said locals have acted negatively toward them because they don’t make the effort to communicate in the local language. Despite this, only four per cent of those surveyed said their ideal holiday would be in an English-speaking country. Tenerife clearly is the “best of both world’s” as many people on the island speak English as well as Spainsh and are delighted when ex pats try to speak Spanish to them whilst holidaying or living in the Canary Islands

The under 20s were found to be the best equipped to cope with foreign languages, with more than half saying they can speak a second language.

Travelsupermarket.com travel expert Bob Atkinson said, “Although the survey may appear to show Brits in a disappointing light, there are some encouraging signs that British holidaymakers want to make more of an effort when abroad but simply lack the confidence.” So why not try to speak in Spanish when you are next on holiday or visiting Tenerife?

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , | Comments (0)

Buyers looking at Spain once more

September 23, 2009 – 6:48 pm

Buyers looking to return to Sapin and Tenerife

Buyers looking to return to Spain and Tenerife

Spain was last at the top in June and it returned victorious in August, claiming first place in  a monthly snapshot of the most popular countries, July’s winner, the USA,  was second. Despite being the subject of more bad publicity than virtually any other country during the credit crunch, buyers are starting to look to Spain once again.

Favouring traditionally popular destinations, international buyers are looking once more to markets such as Spain and France and Brits are proving that the love affair with Spain is far from over.

International mortgage firm Conti revealed that interest in Spanish properties accounted for 22 per cent of the total information requests so far this year, second only to France and up from 14 per cent in 2008.

Assessing the prospects for British buyers in Spain, the company said, “Buyers are in a strong position due to the number of homes available, low interest rates and the opportunity to negotiate price reductions from motivated vendors. “Sensible investments carried out on a long-term basis have a good chance of bringing in healthy returns.”

Prospective buyers are now chasing long term gains and as it had been hit so hard by the global recession, prices could remain low and offer good bargain potential for years to come. Cash buyers have been tipped as the ones most likely to be able to pick up a real bargain in the country as they don’t have to worry about mortgage financing, can bargain hard with struggling developers and can move the transaction quickly along.

The TINSA survey, which prides itself on being ‘Spain’s most reliable guide to property values,’ has found that the decline in prices has stabilized.

Spanish cities are tipped for a brighter future over the next few years, with the Assures Financieros Internacionales (AFI), suggesting that property prices in cities may rise to previous levels during 2010.

Once the glut of unsold properties in Spain is shifted, this will help to aid the recovery and push the market back up in 2010. This of course will also help the market in Tenerife too.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , , , , | Comments (0)

Spain and the Canary Islands still popular for those seeking investment property

August 21, 2009 – 10:53 pm

Brits still planning to buy in Tenerife

Brits still planning to buy in Tenerife

The USA knocked Spain off the top spot in July’s Investment Property watch chart - which tracks the level of interest in certain properties and countries from visitors to the site . Madeira island is gearing up for an influx of new visitors from all over Europe as Spanish airline BinterCanarias starts new direct flights to bring in travellers from the Canary Islands. However Spain and the Canary Islands remain popular with those looking for holiday properties and second homes in the sun.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized, Weather | Tagged , , , , , , , , , , , , | Comments (0)

Brits still keen to buy property abroad says survey

August 9, 2009 – 10:41 pm

Brits and Europeans still keen on property in Tenerife and Spain

Brits and Europeans still keen on property in Tenerife and Spain

Results for the 2009 International Survey conducted by primelocation.com show that 70% of visitors to their site are actively looking to buy an overseas property, despite the current economic uncertainty. Of all respondents, 28% said that they are unaffected by the current economic situation, 22% who had delayed their plans because of the economic climate are now back in the market and hope to find a bargain, while 10% said that they are checking out the market but will not proceed just yet

Ann Wright, International Business Development Manager for primelocation.com, says; ‘This is very clear indication that people have not let go of their dreams of owning a property abroad. Indeed, it is encouraging that people are coming back to the market, possibly because of recent press reports of falling property prices across Europe.’

The primelocation.com 2009 International Survey also monitored the countries the portal’s visitors are most interested in buying in; France took top spot with 25%, Spain came second (16%) and was followed by Italy and Portugal which tied in fourth place with 11% each. The United States, Cyprus, Greece, Switzerland, Turkey, Canada and the UAE took the rest of the top 10 spots.

‘It is interesting to note that over a quarter of all respondents currently own/rent a property in France and interest in the country, which has always been the first choice amongst Brits, has remained fairly stable at 25% since 2008. Spain  and Tenerife has increased in popularity since 2008 as people respond to the reports of falling property prices. 

“The percentage of people looking to buy holiday homes overseas remains unchanged from last year’s survey (48%), which reinforces the notion that interest is still there despite the worsening economic conditions, “ continues Wright. “However, the number of people moving abroad permanently has decreased; this is possibly a result of the fluctuations in the value of sterling against the Euro. Also, property prices and the oversupply of rental properties in continental Europe mean fewer people are buying with a view to using the property as an investment or income generator.” Not surprisingly, coastal locations are ranked No.1 by all respondents who are currently looking to own or rent an overseas property, followed by tranquil village settings.

‘Planned spending levels are very similar to 2008, which further strengthens the notion that interest in overseas properties has not been significantly impacted by the economic climate. Also similar to last year’s survey results, most respondents said that they want to buy a property that requires minimal work, buyers want somewhere they can start to use and enjoy straight away,’ concludes Wright.

Primelocation.com 2009 International Survey also found that buyers prefer to use an estate agent in the country in which they are buying. UK based agents are also popular because they give the buyer the reassurance of an English speaking service and expert, reliable advice of the processes of buying abroad.

The survey results also indicate that buyers start their search on property portals, which give them access to a wide range of estate agents both in the UK and abroad. Once they have narrowed down their search they are happy to use the services of estate agents who have properties that fit their requirements.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , , , , , , , , , , , , | Comments (3)

Brits are buying in Tenerife again.

June 30, 2009 – 9:51 am

Brits are back buying prime property and bargains in tenerife

Brits are back buying prime property and bargains in Tenerife

 British demand for property overseas is on the rise once more, as a growing number of Britons seek to take advantage of the fact that sterling is now making gains on the euro.Until recently, more Brits were selling their homes in the eurozone, in order to repatriate proceeds back to the UK, and consequently take advantage of the euro’s strong value against the UK pound.

The currency broker reports that since January 2009, the volume of clients repatriating their funds back to the UK after selling their property abroad ascended by a staggering 60per cent on the previous six months.

This is unsurprising given that at one stage this year, the UK pound hit virtual parity against the euro.

This meant that those British expats who were fortunate enough to sell their eurozone-based home, amid difficult market conditions, were able to do so for less than they had initially paid, and still make a profit, due to the favourable exchange rate.

However, the UK pound’s value against major currencies such as the euro, has now improved, and looks set to strengthen further throughout the course of 2009, which bodes well for Brits currently thinking of buying a home abroad.

Sterling is currently trading at €1.16 against the euro, having dropped slightly from highs of €1.18 earlier this month and so more Brits are again turning their attention to the bargains and prime property in Tenerife and checking out the estate agents on the island for the best deals.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do | Tagged , , , , , , , , , , , , , , , , , | Comments (0)