Retiring in Spain is a dream close to the hearts of many, which is unsurprising given the many positives the Spanish culture is famous for. Relaxing through life’s later years in a warm climate in a laid back environment is surely a plus for anyone.
The challenging part can be deciding on whether it fits your budget, and perhaps a couple of lesser concerns such as learning the language and adjusting to cultural differences. The main consideration will be that it is plausible to be able to support yourself over the long term.
Most people’s retirement stretches across a twenty-year period, so your projections will need to be realistic in order not to run out of the money you’ve accumulated. If you have spent many years working and saving, what better way to make the most of those efforts than investing in your dream Costa del Sol property?
- Create a realistic budget
You may well have a pension, but it is still important to accurately estimate what your monthly expenses will be over the period. This means that you will want to take into consideration the costs of the lifestyle you’ve been dreaming about.
It is said that eighty percent of your usual expenses equate approximately to the costs you’ll need to cover during your retirement period, but this may be different from one country to another. The good news is that the cost may well be cheaper here in Spain, if you’re coming over from the UK for example.
It is of course possible that you’ll spend even more money than before because of the accommodation and activities you wish to factor into your new lifestyle. After all, Marbella’s many luxury shops and the Costa del Sol’s many beautiful golf courses can be a major temptation!
Make sure that you leave something in the pot for extras you may not have thought of. Taxes can vary greatly from one country to another, and there may be things you haven’t thought of until you arrive. It is important to brush up on as many of Spain’s rules and regulations as you can so as not to get caught out when you get here.
When it comes to property, Paradise Marbella’s team of experts will be happy to share their wealth of knowledge with you so that you are able to create an accurate budget.
- Familiarise with Spanish requirements
Although you will have paid plenty of income tax in your home country, you may be required to pay taxes again for one thing or another here in Spain – unfortunately nobody is exempted from this, one way or another, and in all countries. If you’ve educated yourself about what is required, you can make plans to make the best of it.
This means that you may be able to reduce, defer or totally avoid tax. Again, this is something that a professional conversant with Spanish law will be able to advise on. It’s worth doing, as it’ll mean that your funds stretch much further and can go toward your dream lifestyle instead!
You might be considering making an investment in Costa del Sol property you can rent out to others, so that your longer terms needs are covered. This is certainly one way to make an income here in Spain. Whatever your plan for making extra income, it is worth considering what options you have for this, as twenty years is a long time!
It can be worth consulting a financial professional to get a clear idea of how far your finances will stretch. If you receive a pension, you may be able to capitalise on this so that you can get the most from it.
- Plan your investments and importing your income
Retirees often worry about potential problems such as inflation and changing interest and exchange rates. These are wise considerations, but they can be offset with prudence and forward planning.
Inflation can be offset by choice investments, and as exchange rates can affect your spending power, leaving your cash in a foreign account can make for an inconsistent ‘income’ each month. For more consistency (and dependent on the way your income is organised) it might be better to find a cheap way of importing all your funds at once into Spain.
If you have the funds to do it, you may be able to build an investment portfolio consisting of properties, bonds and equities.
- Enjoy yourself!
If you get these details in order before your move to the Costa del Sol, you should not have to spend too much time thinking about this over the long term. Which is of course what you want… to put your feet up and enjoy your new Sunshine Coast lifestyle!
Property is one of the major considerations, whether you’re looking for a luxury villa in Benahavis just for you, or an investment property in Marbella to rent out to others. Paradise Marbella specialise in exactly that, and we can help you with a fair few of the other details too. So, why not give us a try?