Are you planning to move to Spain? Well, then there are a few things that you should bear in mind if you want to avoid spending a fortune on unnecessary expenses. Knowing the right tips and strategies to navigate the new and complicated rules of a different country can be quite helpful. Therefore, today we will do the same, and here are seven ways of saving money when moving to Spain.
So, let’s get started!
Open an international bank account:
When it comes to banking, you may have many questions, one of which is what to do with your home country bank account? Should you close your existing account? Well, the answer is No, you should keep your original bank account because you will probably be traveling back to your home country to meet relatives and friends.
However, only your home country account can’t be used freely in Spain. You will have to pay a lot of transaction fees and pay every time you withdraw money. So, our advice is that you should keep your original bank account and try opening an international one.
It would be best if you also tried to combine your international account with an N-26 service, which will get you a credit card that you can use in any country without any extra fees.
Open a Spanish bank account:
If you are playing to move to Spain Indefinitely, opening a Spanish bank account is essential. However, the process for opening an account can sometimes be tedious, mostly if you re-opening the account as a non-resident.
Though an international bank account from your home country will get you by for a while, or if you visit Spain only as a holiday destination, having a local bank account is the best alternative.
Not only will having a local account let you withdraw money from anywhere in the country without any extra charges, once you settle down in Spain, but you will also have to pay some regular bills every month. For instance, your electricity, water, and gas bills, and most Spanish companies will not accept cheques or transfers from international accounts.
Here is a list of some of the popular Spanish banks that you can choose from
- BBVA
- Banco Sabadell
- CaixaBank
- Santander
Decide on your housing options carefully:
One of the most significant expenses, when you are moving to Spain is housing, and in any case, you have two simple options. Either you can rent, or you can buy.
Firstly, if you plan to rent a flat, start by doing some research. At first, the overall rental prices may seem cheap to you depending on which country you are from, but if you make a local market comparison, there is a huge difference.
Popular cities, like Barcelona and Madrid, are going to have the highest rental prices. However, if you do want to live in these cities, the rent is still affordable. However, you must explore different neighborhoods of the city and compare other options.
On the other hand, if you are planning to buy a property, the situation might be a little different. The prices will change in different regions, you will have to check for other mortgage options, and if you are buying a property as a foreigner, you will have to pay at least half of the properties worth upfront, while only half can be paid as a mortgage. Moreover, you may have to pay different taxes and fees as well. Anyway, it would be best if you searched online, and you will easily find cheap property for sale in Spain.
Keep the exchange rates in mind:
Though exchange rates may feel like a small issue, they can add up and have a massive impact on your finances. If your income source is in your home country, you will have to exchange currency, and there is no way around it.
Even if you get a job in Spain after a while, you will have to exchange money during the moving period. If you use the right exchange option, you can end up saving quite a bit of money. We would suggest using popular apps or services like Rovoult or Transferwise.
The advantage of these services is that the entire process is done online, and you can save money because of their extremely low fees.
Do some tax planning:
Tax laws in Spain may be very different from your own, and since you are living in Spain as a foreigner, there are different situations that you will encounter. For instance, if your income source is in your home country, are you going to have to pay double taxes? What taxes do you have to pay to buy property as a foreigner?
Moreover, if you are establishing a business in Spain, the taxes might be entirely different. Therefore, you must consult an accountant who can guide you about the local tax laws.
Consider transportation costs as well:
When you are living in Spain, you need to consider your transportation costs as well. If you are going to use public transport, the Spanish system works quite well, especially in major cities like Barcelona or Madrid.
Nevertheless, depending on the place you choose to settle, your daily commute may be different, and you may be thinking about getting a car. If you are planning to acquire a vehicle, you will have to get familiar with the process.
Are you going to get a new car, or by a second hand one? What are your fuel expenses? How much will you have to spend on maintenance and parking? These are some questions that you need to ask yourself before you make a final decision.
Go to a “Chino”:
If you are from the US, you will know about Walmart, where you get almost anything you need at an affordable price. Will, Chino is the Spanish equivalent of Walmart. You can get almost anything you need over here, and there are branches of this store almost around every other corner.
These stores can help you save a lot of money over time because you won’t find a better price than Chinos.