How to save money in Spain

It is undoubtedly true that the cost of living in Spain has risen over the last few years.

Coupled with the fact that Spanish incomes remain relatively low in comparison to other EU countries, this means that saving money where possible is more important than ever. Here are a few ideas about how to make some important savings when you move there.

Banking

As an expat opening your first bank account in Spain, you may well be surprised by how high the bank’s charges and fees are. You will be able to choose between opening either a resident account or a non-resident one. The latter will charge higher fees. One way of saving money is to open a resident account. For this, you will need an NIE number (Número de Identificación de Extranjeros). It is always wise to get financial and taxation advice from an expert before determining how best to operate your finances when moving to any new country. Your individual financial situation may mean it is more advisable to retain non-residency.

International banks, such as HSBC, are often a popular choice for English-speaking expatriates. They offer their services in English and have branches all over the world.

Do some research on which bank will offer you the best service for your personal banking needs. For example, Caja Murcia offers pensioners in receipt of a UK pension a commission-free account. As with most things, it’s worth shopping around.

Taxation

To avoid what’s known as double taxation, in other words being taxed upon income and assets in both your country of origin and Spain, check whether Spain has entered into a Double Taxation Avoidance Agreement (DTAA) with your country. If you are resident in Spain for more than 183 days a year, you will be required to pay income tax.

With regards to Value Added Tax (VAT), non-European expats should keep all of their receipts for goods purchased or services received, as they will be able to claim a refund on VAT paid if they leave Spain and return to their country of origin.

Spain Save

This is an online voucher scheme. Register online at Spain Save to receive discounts on top attractions, restaurants, bars and shopping. Thousands of discount vouchers are available for free and they include such offers as two meals for the price of one, usually on weekdays, at hundreds of restaurants.

Haggling

At traditional Spanish markets, it’s certainly worth using your best negotiation skills to get a better price for goods. The key things to remember are to arrive early, as merchants will want to kick off their day with as many sales as possible, and exercise a certain air of practised nonchalance. If you seem interested but do not appear desperate for the item, you are far more likely to achieve a good deal.

Supermarkets

Many Spanish supermarkets have their own magazine that lists offers, deals and promotions. It can be really worthwhile to keep abreast of the supermarkets’ promotions, saving you significant sums over a period of time.

It’s also worth knowing, but will take you a bit of research once you are in the country, that supermarkets reduce the prices of many of their goods at the end of the day. Each supermarket will have its own routines and timings, and it will be a question of learning at what times the reductions are made in individual shops.

Most of the larger supermarkets operate a loyalty card scheme, whereby you collect points each time you shop and gain rewards. These can take the form of discount coupons (Carrefour and Consum), redeemable gifts (Eroski) or money-off coupons on specific products (Dia).

Fuel

Additionally, many service stations also have their own loyalty card scheme which can provide worthwhile savings.

Electricity

Iberdrola, Spain’s main supplier of electricity, has a tariff calculation tool on their website, to help you to determine the tariff and scheme that will best suit your household’s needs.

By doing your research, it’s possible to live very economically and reasonably in this popular Mediterranean country.

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