A Silly Question?

Disorderly · #1 02-02-2018, 18:10

I hope this isn’t a silly question, but I know that some of you folks will be able to answer this.

My wife and I are coming out to PP in March and April, planning to find and buy an apartment. I’ve researched pretty thoroughly (the archived posts on this Forum have been really helpful) but I’ve just three points that I’d be really grateful if someone could help with.

I assume that you don’t have to have a Spanish address to apply for an NIE number?

Do you need a Spanish address to open a bank account in PP?

What’s the current thinking on the best bank to use? This hasn’t been discussed on here for a while. Spanish bank charges seem a bit steep.

I’d be really grateful for any help - thanks in anticipation.

Duncan

Yorkie · #2 02-02-2018, 18:33

Hi Disorderly, Our solicitor did all this for us in that his assistant ran us round Pollensa old town getting things signed and generally looking after us etc. If I remember correctly, you need to get your NIE first which was done at the Notary's in Pollensa. It cost about 60 euros for the two of us. Then we went to the bank to open an account at Banca March. Then back to solicitors to sign some stuff. Then back to the notary to sign more stuff. It took about a couple of hours all told. We then had to pay a deposit which we paid by bank transfer from the UK via MoneyCorps. Our bit of advice would be to find out who the management company is for your apartment complex and find out if you can what money is owed by the current owner. We were quite stressed to find out that our previous owner owed loads of money. We had to pay it on his behalf, then wait to get it back after the sale was completed. We waited quite a while ... but it all worked out. so, no you don't need a Spanish address to get an NIE or a bank account.

Disorderly · #3 02-02-2018, 19:45

Dear Yorkie

Thanks so much for that advice - much appreciated.

D

its cd · #4 02-02-2018, 23:51

We bank with Sabadell - not sure how their costs compare with others but they are great to deal with and their on line access is really good

1999 · #5 03-02-2018, 12:48

Ok....
You can get your NIE from either of the Spanish Embassy's in the UK.....if you live north of South Yorkshire you go to the Embassy in Edinboro........if you are in the South you can go to London.
It's far cheaper to do it yourself ......I went to Edinboro, met Marcos Allonso who did all the paperwork and my NIE certificate was back at my home address within 7 days.....details can be found on the Internet.

You do not need a Spanish address in order to open a bank account, you can use your UK address.....but you will need a passport , your NIE certificate and proof of earnings such as a P60.

Caixa bank charges 25 euros each quarter for a current account which offers you online banking plus debit card / credit card and cheque book. If you are a non resident they will also submit the annual tax submission of 30 euros that is charged by the Spanish tax authorities.
Ana Marie in Caixa speaks very good English and is very helpful.

Good Luck....the market is quite volatile due to the rental situation and IMO this is going to be a very interesting year for property purchase etc.
1999.

bobley · #6 26-02-2018, 01:25

I opened an account with Sabadell in December. I spoke to a nice bloke on the phone. He sent me a form via email which I completed and he made me an appointment to meet in PdP branch one morning 2 weeks later. In branch they took a copy of my passport and give me a PIN number and a load of paperwork. The debit card arrived a couple of days later in the UK. I dont have a NIE yet and I didn't show them a P60 either. I then used Moneycorp to move some money over and when I arrived in Palma I found the first ATM and changed my PIN and then used the chip and pin in the supermarket. I used the app on my phone to pay the surveyor and I've also used it to pay the 10% deposit to the estate agents escrow account.

As far as NIE goes. I popped into the Notary office in Pollenca, paid €4 for a certified copy of my passport (they speak a little english in there). I gave the certified copy to my solicitor (Oscar Coll at DelcruzColl, nice bloke) and signed a NIE application form which he'd completed for me and a second form which gives him permission to apply for my NIE on my behalf. They charge about €110 for that which is much less than it would cost me to take a day off work an go to London.

The only other thing I've signed is the option contract which binds me into buying the house. I got that via email sat at my desk at work, signed it, scanned it, emailed a copy back and posted the hardcopy back. I'll have to go back in a few weeks to meet at the Notary and hand over the big cheque. We did the surveys and searches before committing to buy the house so we knew there were no outstanding fees owing and we put that down in the option contract so if there had been a problem then I could pull out without penalty.

Some folks give power of attorney to their solicitor for the house purchase (I guess that's what Yorkie did?) but I'll just make sure I'm there on the final day - after all, I want to get the keys and go shopping.

lollipop · #7 26-02-2018, 17:55

I am sure you won't regret it. Enjoy your new property .

alcanadakid · #8 27-02-2018, 12:08

I suggest that you get a quote how much it will cost to deposit your money for the purchase, We did the balance by bank transfer and got stung for many thousands of euros by La Caixa just for the luxury of accepting our money. UK charges were quite acceptable.

We later realized that this could have been negotiated down considerably if we have done so in advance.

MPH133 · #9 27-02-2018, 12:26

Quote:

Originally Posted by alcanadakid

I suggest that you get a quote how much it will cost to deposit your money for the purchase, We did the balance by bank transfer and got stung for many thousands of euros by La Caixa just for the luxury of accepting our money. UK charges were quite acceptable.

We later realized that this could have been negotiated down considerably if we have done so in advance.

Really? La Caixa didn't charge us anything

bobley · #10 27-02-2018, 13:58

I was warned that any money coming into my Sabadell account should have a proven link to me in the UK so I just made sure my Moneycorp account was in the same name as the Sabadell account. Otherwise you incur a 7% capital gains type tax. The money has been sat there 2 months now and I've only incurred the usual monthly fee. I did move 10% out last week with no charges.

Once I've bought the house I'm considering closing the account and just paying the bills annually if possible. I could probably just pay the bills on demand from my Moneycorp account? I'd hate to have to pay €10 a month (to Sabadell) just so I can pay Movistar €67 a month??? You only get a free account with Sabadell if you credit more than €700 a month. Maybe I could just send the minimum amount over and then spend the money in the UK on my debit card???

pollensa · #11 27-02-2018, 15:00

You will need a bank account to pay monthly electricity bills Direct Debit and also the two annual Council tax charges - ours are direct debit - plus there will be your annual income tax return (our solicitor does ours & we pay him by bank transfer). I think you will find it difficult without a bank account. Am not sure that you can avoid paying Movistar by Direct Debit.

If you are buying an apartment there will also be a regular community charge. Ours is every 2 months I think. Another annual cost will be insurance.

Personally I find it much easier that all our regular bills are Direct Debit.

Perhaps you could switch your Sabadell one to a different one without such a high minimum credit restriction.

All bank accounts in Spain have some sort of charge whether its monthly or per transaction.

Golfaholics · #12 27-02-2018, 15:20

I can't speak highly enough of Caixa Bank and Aina Maria in particular. Perfect English and so helpful. Never had any reason to query charges which are very reasonable.

bobley · #13 27-02-2018, 17:12

Quote:

Originally Posted by pollensa

You will need a bank account to pay monthly electricity bills Direct Debit and also the two annual Council tax charges - ours are direct debit - plus there will be your annual income tax return (our solicitor does ours & we pay him by bank transfer). I think you will find it difficult without a bank account. Am not sure that you can avoid paying Movistar by Direct Debit.

If you are buying an apartment there will also be a regular community charge. Ours is every 2 months I think. Another annual cost will be insurance.

Personally I find it much easier that all our regular bills are Direct Debit.

Perhaps you could switch your Sabadell one to a different one without such a high minimum credit restriction.

All bank accounts in Spain have some sort of charge whether its monthly or per transaction.

Thanks for that. I was hoping to avoid a tax return as I wont be renting the house out and I dont earn any money in spain, not will I be there for more than 6 weeks a year (I've got at least 6 years until my youngest finishes uni). I'll speak to Oscar once the dust has settled... Meanwhile, I guess I'll keep the bank account open...

alcanadakid · #14 27-02-2018, 17:37

Quote:

Originally Posted by MPH133

Really? La Caixa didn't charge us anything

This was 2004, and as I remember we were charged about €7000 on a transfer of about €1.5m . Our lawyer tried to reduce it but it was too late once it had gone through.

Maybe it is different now, but it is worth checking

El Gordo · #15 27-02-2018, 18:26

Quote:

Originally Posted by bobley

.......... I was hoping to avoid a tax return as I wont be renting the house out and I dont earn any money in spain,........

There is Non Residents Tax on property owners who don't rent out which is a percentage of the rateable value see here!!
Also Wealth Tax to consider on your assets in Spain if Non resident, although the threshold for qualifying was raised substantially a few years ago so you may not have to pay see here.

I'm sure others with more up to date info can enlighten us.