Tuesday 29 September 2009

HEALTH CARE IN SPAIN


Ten days ago I received a request from a media company for an article about health care in Spain to expand upon what I had written in my recent book ‘How to Move Safely to Spain’. By chance, within a couple of hours, I was taken into hospital with a potentially life threatening illness - making my writing commission nothing if not ironic!

In fact, this was not the first time that I had been forced to request treatment from the Spanish health care system. Previously, a major road accident had resulted in my wife and I being taken into the A&E department of our local hospital and my daughter has had emergency attention from the local children’s clinic (apart from the normal array of vaccinations etc.). On each and every occasion we have been stunned by the professionalism of the service that we have received.

Spanish State health care (we do not have private health insurance) has been nothing if not impressive. Indeed, along with ex-patriot friends of ours, we would claim that the service provided has been better than we received in the UK.

Certainly, the Spanish state health care system is extensive. There are some 800 hospitals and 2,700 medical centres (Centros de Salud) throughout the country with almost every village having a doctor (medico) who will attend his medical centre daily (even if it is just for a few hours before he goes to the next village or district). Normally a nurse (enfermera) will be in attendance and sometimes, as a patient, you can see your Spanish doctor, the same day.

Importantly, children under the age of fourteen are treated in specific children’s health centres in Spain which are staffed by specialist paeditricians. These are normally located in the nearest town of any size and provide expert care for children.

Meanwhile, there is a network of Spanish hospitals with accident and emergency departments (urgencias) throughout the country which operate in a very similar way to that of the UK. You are normally seen by a member of the triage staff promptly and then treated as quickly as necessary given your degree of injury. Any follow-up treatment (such as I needed) is undertaken by the hospital - who arrange nursing visits together with any requirement for transport to and from the hospital.

Of course, Spanish health care is not ‘free’ just because you are an EU citizen despite a common misconception to the contrary. For ‘free’ state health care you need to be tax resident (paying tax or making an annual tax return to the Spanish State) or a pensionista (over 65). Merely having an NIE number or inscribing yourself on the Central Register of Foreigners (Centro Registro de Extranjeros) is not sufficient!

If you are over 65 or tax resident than you will need to obtain a SIP (Sistema de Informacion Poblacional) card. This is your individual Spanish health card and is needed whenever you attend a Spanish doctor or hospital. It is something that you can apply for yourself or (more easily!) through the services of a gestor.

Naturally, one of the major problems for foreigners with regard to the Spanish health service revolves around language – or the lack of it in the case of many foreigners. Interpreters are not supplied in Spanish state hospitals or clinics and fluency in English can never be guaranteed amongst Spanish medical staff. However, this is not necessarily an impediment to using Spanish State health care as usually interpreters are available within most communities – particularly those with high density foreigners. For a modest fee, you can normally find someone who can attend any appointment with you and translate your problems and the anwers of your Spanish doctor.

Of course, Spain has private health facilities (a minority of Spaniards use them) and most major health insurance companies have policies that cover Spain. In addition, in many large towns there are ‘walk-in’ Spanish private medical clinics that also have beds and sometimes an A&E capacity. So, if you choose not to go the Spanish State health care route then you should easily find adequate medical cover for all your needs.

As for us, we have had no regrets in using the Spanish health system. Any system that was able to provide a check-up from two consultant paeditricians, a full head scan and the results (as was done for my daughter) within four hours is good enough for me! Equally, the treatment that I have received over the past ten days has been beyond criticism and a tribute to a system and staff that that would be hard to better.

From the above you may come to the conclusion that we are an unhealthy family! However, this is far from the truth and our life in Spain has been remarkably free from ill health. Indeed, few houses in Western Europe have fewer pills and potions than ours and trips to the doctor are extremely rare.

In fact, this is consistent with Spain being a healthy place within which to live. It evidently has the greatest longevity rate for women in Europe and the second longest for men. So, hopefully, any use of the Spanish health service should be minimal. However, should you need it - be assured that it works and, at its best, is superb.

Finally, it would be churlish of me not to publicly express my gratitude to the staff of Gandia (Valencia Province) hospital and health service for their excellent treatment of both my family and (most recently!) myself! Well done - and many, many thanks...1

Saturday 19 September 2009

FINANCIAL DISCIPLINE IN SPAIN - 6 CRITICAL GUIDELINES


When it comes to finance, the secret of moving to Spain is to:
1. Under-spend on any Spanish property.
Set a budget and make it less than you can afford and then keep to this figure. Be disciplined and remember that long term an inanimate object (even a lovely Spanish villa) will not guarantee you happiness. Financial problems, on the other hand, are absolutely certain to provide you with heartbreak and intolerable stress.
2. Avoid any borrowing - whether mortgages or otherwise.
Keep your fixed costs and overheads to a minimum. For someone relocating ‘cash is king’ – unless you are financially very sophisticated.
3. Budget for the worst possible income return on existing investments or pensions.
As 2008 showed, Sterling can crash (in 2008 almost by a third to the value of the Euro compared to a few years previously). Equally, the value of pensions and other investments can drop as radically as they can rise. Nothing is absolutely certain and you must build in a conservative factor to your anticipated long term income. Make sure that you can survive comfortably should your predicted income drop by 20% - 30%
4. Be precise about the Spanish property you buy.
Make sure that your new home will be right for you and that you will not have to move again. The costs of buying property in Spain are considerable (around 10% of the purchase price) and Capital Gains Tax is payable (with exceptions) on the sale of your Spanish property whether it is your main and primary residence or a second home. If you buy a property in Spain that is not suitable for some reason and then sell up and buy again in Spain then you will have lost:
- At least 20% of the gross value of the properties bought (2 x 10% purchase costs).
- Any money payable as a consequence of Capital Gains Tax.
- The fees due to any estate agent.
- The ancillary costs of moving (removals etc.).
This is a fine way of wasting a lot of money very quickly.
5. Allow at least three years for any work in Spain or new business to start providing a satisfactory income.
Businesses are invariably much slower (irrespective of the country!) to produce a proper income than ever first anticipated. There are exceptions, of course, but be very pessimistic on your predictions about the expenditure involved and the time it will take to receive a viable income.
6. Put aside a contingency budget for unexpected problems
Unanticipated difficulties occur when living in Spain (as if with any country) as surely as ‘night follows day’ and just as certainly they involve expense beyond that ever considered. So, always ‘ring-fence’ several thousand Euros as a contingency budget - to be used only in cases of emergency.1

Wednesday 9 September 2009

NEW SPANISH PROPERTY - ‘OCCUPANCY PERMIT’


First Occupation License

It is absolutely essential that your new build property in Spain is granted a Licencia de Primera Ocupación (sometimes referred to as a ‘Certificado de Habitacion’ or ‘Cedula´) before you pay fully for it. This vital certificate is granted by the local town hall planning department upon completion of a Spanish new build and declares the legality of the property in Spain. Also, it acts (in theory) as confirmation that the Spanish property meets all necessary local and national planning regulations.

If your newly built Spanish property, when completed, does not have a Licencia de Primera Ocupación (sometimes referred to in English as a First Occupation License - FOC) then ‘alarm bells’ should ring! One sign of this is when a Spanish property is not connected to mains utilities (water, electrics and telephone). This is known sometimes as being on ‘builder’s electrics and water’ - which is an accurate phrase!

Indeed, your property in Spain may literally have its services connected to those of your builder rather then the services suppliers. This is usually obvious but can be proven by the fact that you will not receive or be able to obtain any formal services bills.

Certainly, by Spanish law, utility companies cannot connect their services to illegal properties in Spain. If they do they can now be fined heavily. So, services suppliers tend not to connect to illegal properties - when in the past (pre-fines) they turned a ‘blind eye’ to the law.

So, if your new Spanish property lacks a mains supply of electricity, water and land line telephone then you should take this as a potential sign of illegality. At best, it may indicate that there are delays with regard to legalisation or final completion of your Spanish building project.

Note that sometimes personal registry on the local ‘Empadroniamiento’ can also be affected by a lack of a First Occupancy License.

Being on ‘builder’s electrics and water’ used to be laughed off and was tolerated by many buyers of new properties in Spain. Frequently these people were told that it was ‘quite normal’ and would be ‘sorted out soon’... However, some found out later, to their great cost, that the underlying reason for this seemingly ‘innocent’ delay was related to the far more serious and worrying issue of illegality. So beware...

Note that failure to supply a Licencia de Primera Ocupación constitutes a breach of contract on the part of the seller. Indeed:
· You are not obliged to sign the Escritura (UK ‘Completion’) until the Licencia de Primera Ocupación is presented.
· Your seller cannot cancel the contract on the grounds that you refuse to sign the Escritura without the Licencia de Primera Ocupación.1