Living in a Spanish-speaking country
Health and Health Insurance
European Union citizens who have an EHIC (European Health Insurance Card) are entitled to medical care in Spain. All resident employees and self-employed workers must register with the social security system and make monthly contributions
through their employer or company. They, and their dependents, are then entitled to free hospital and medical care.
In Mexico the IMSS (Instituto Mexicano del Seguro Social) operates the social security system, providing everyone who has a stable job with health care and medicine practically free.
By contrast, private health care is very expensive. It is therefore advisable to have health insurance if private medicine
is to be used.
Argentina has public and private hospitals, but health care is more accessible in Buenos Aires than elsewhere. Public hospitals provide
basic care but the staff are very well trained. If a patient does not have insurance or their insurance will not cover their
treatment, the staff, whether in a hospital or a private clinic, will usually require them to pay in cash before leaving.
Many of the big private hospitals offer their own health plans which the public can join. These plans usually offer more flexible
payment terms, discounts and improved accessibility to health care.
Renting a property
In Spain, properties for rent are usually advertised in newspapers and local real estate agencies. Long-term lets, usually for a year
or more, are cheaper than short-term ones. After the first year, the tenant has the right to renew for up to five years and
the landlord can only raise the rent according to the rate of inflation. A tenant can only be evicted for not paying the rent
or if the landlord wants to occupy the property as his/her own home. Generally, you cannot vacate the property in the first
year without incurring penalties. After this period you must give one or two months’ notice. It is usual to pay a deposit
of one month's rent (two months’ for furnished properties) to cover dilapidations. Agents’ fees are typically a month's rent.
For some properties you will also be required to provide a banker's guarantee (basically a sum of money equivalent to 6-12
months’ rent) which is kept in escrow by the bank. It is made over to the landlord in the event of the tenant breaching the
contract.
Rentals for periods shorter than a year are more expensive than long-term lets, but in some cases, you can convert a short-term
contract into a long-term agreement.
In Mexico you can often rent a property for a short period and then extend the lease. Landlords and agencies are open to negotiation
over the terms of a lease. It is common to pay rent in advance and you may also be asked to pay a deposit, against dilapidations
or default, at the beginning of the lease, which will be retained by the landlord or agency. This deposit will be returned
at the end of the lease if there is no dispute. Prospective tenants, especially in the Federal District, must fulfil a number
of conditions, including having a local guarantor, providing the deposit, proof of income, a copy of identification, references,
and sometimes, evidence of a good credit rating. The property's state of repair must be established prior to taking possession,
as this will be crucial in allocating responsibility for any dilapidations when the lease ends.
Inventories will be provided and should be very closely checked before any contract is signed.
In Argentina a lease on any property must last for two years, unless it is furnished. Tenants are responsible, not only for the rent,
but also for property tax, maintenance costs, etc, and must provide a local guarantor. The guarantee deposit is a sum of money
paid to ensure that any contractual obligations will be met; usually this deposit is the equivalent of a month's rent and
will be reimbursed provided the property is vacated in good order at the end of the lease. Rent is usually paid monthly in
Argentinian pesos. However, the lease may stipulate payment in dollars, especially for short-term rentals.
Buying a Property
In Spain your lawyer will verify from the property register whether the vendor is the owner, whether there is a mortgage owing on
the property (in Spain mortgages can be sold with properties), whether the property is free of any other encumbrances, etc.
Next, a private contract will be drawn up which will contain all the details of the sale. If you are not yet ready to pay
the full price, you will sign an option to buy, which will record all the terms of the transaction. The contract will stipulate
the deposit (normally 5% to 15% of the purchase price) and the date of completion of the sale. The latter will be signed before
a notary public. A public deed of conveyance will be obtained and signed before a notary public who will send it to the local
tax office for payment of tax. It will then be sent to the property register (catastro) for registration. The deposit is not refundable if the buyer does not complete the purchase. Notary's fees are also payable.
On disposal you may be liable to pay capital gains tax (plusvalía), even if the property is your only residence.
In Mexico there are restricted zones within which foreigners are prohibited from buying land. It is possible to buy in these areas
by means of a trust (fideicomiso).
Otherwise, foreigners are free to buy property and there is a wide variety to choose from. Traditionally property transactions
were made in cash, and this is still frequent, but Mexican banks now offer mortgages. However, 30% - 40% deposits are often
required and interest rates may not be as attractive as in Europe, the USA or Canada. The notary public is pivotal in property
transactions in Mexico as they supervise all property sales and purchases. Notaries are appointed by the state governors and
have to be fully qualified. Independent legal advice may be necessary, as the notary does not act for either of the parties
to the transaction.
For futher information see: http://www.mexperience.com/property/prop_buying.htm
In Argentina, the initial stages of property purchase are much as described above. It is common to sign the deposit contract in a real
estate agency in the presence of a lawyer. A copy of the deeds of the property will be handed over at this stage, together
with any outstanding bills and proof of the vendor's identity. Once the deposit has been paid and the documents signed, the
sale is set in motion and usually the rest of the process is very straightforward. As in most Spanish-speaking countries,
it is important to engage a lawyer, known in Argentina as an escribano, who will examine the deeds, registration documents, etc, which are associated with the property. The notary will have the
property inspected and will draw up the contract which both parties must sign in his/her presence. The money is paid over
in a bank and the property can change ownership within a few days.
If the sale is not registered immediately, a contract of sale is drawn up. This acts as a receipt for the deposit and sets
in motion the completion of the transaction. This document contains the conditions of the sale: costs, time scales, handover
date, penalties for failing to comply with the contract, registration date, the name of the notary public, etc. Most of these
details will then be included in the registration. Once the sale document has been signed it is binding; if the buyer defaults,
the vendor keeps the deposit and if the vendor withdraws, not only must he/she return the deposit but he/she will also incur
double the cost of changing the registration details. Registration of the sale marks the completion of the transaction.
Banking: personal accounts
If you are thinking of staying in Spain for more than six months you will probably need a bank account. There are several types of bank account in Spain. To open
one you will need proof of residence or a passport and a NIF (Número de identificación fiscal – taxpayer's identity number).
Types of account
In Spain types of account can vary from one bank to the next, especially for savings accounts and accounts for particular
categories of clients, such as students, children or investors of large sums of money.
Checking Accounts: These are accounts which offer basic banking services, in other words: checkbook, debit card and monthly statements. Usually,
there is no minimum requirement as to how much money there is in the account (nor is there any limit to how much money is
paid into/out of your account). Some banks offer checking accounts for non-residents, which have the advantage that you are
exempt from all taxes on the money in this account. You must provide documentary proof every two years that you are not a
Spanish resident.
Time Deposit Accounts: These accounts offer interest rates which depend on how much money comes into your account and how long it stays there. They
guarantee the capital sum and a fixed rate of interest until maturity, which is not dependent on the fluctuations of the financial
markets.
Savings Accounts: The main difference between this and a checking account is that funds are withdrawn using a passbook.
Homebuyers’ Accounts: A financial product which consists of a savings plan designed to build up capital for the future purchase or renovation of
a first home. The account operates using a passbook and bank deposits, which as well as providing the account holder with
a return on his/her investment, offers tax advantages if the account holder pays income tax in Spain.
In Mexico foreigners have several options regarding bank accounts. Americans and Canadians can have accounts in either pesos or dollars.
The former are knows as axis accounts and the latter as central accounts. With the latter the account holder can transfer funds to other accounts, either within Mexico or abroad, carry out business
transactions and invest in the Mexican stock market.
Checking Accounts in pesos: Yield regular interest payments and require a minimum deposit when you open them.
Checking Accounts in dollars: Range from normal checking accounts to accounts which only yield interest. A minimum deposit is also required when you open
these accounts.
Deposit Certificates: Can only be held in pesos. They earn the highest interest for the account holder and also require a minimum deposit.
In Argentina you must have a DNI (documento nacional de identidad – national identity document) to open an account and in order to obtain one you must be a resident. There are no general
rules for opening bank accounts and different rules apply for opening savings and checking accounts. Accounts can be opened
in pesos or dollars and the charging structures can vary widely.
| Short glossary of banking terms |
| abrir una cuenta |
to open an account |
| ahorros |
savings |
| anual |
annual |
| anualmente |
yearly |
| banco |
bank |
| billete (de banco) |
bank note |
| caja de ahorros |
savings and loan institution |
| cajero automático (permanente) |
ATM (AmE), cash machine (BrE) |
| cargos (bancarios) |
charges |
| cartola (Chi)
|
(bank) statement |
| cerrar una cuenta |
to close an account |
| cheque |
check (AmE), cheque (BrE) |
| cheque de viaje or de viajero |
traveler's check (AmE), traveller's cheque (BrE) |
| chequera |
check book (AmE), cheque book (BrE) |
| código de banco y sucursal |
bank routing number (in US), sort code (in UK) |
| código IBAN |
IBAN |
| comisión |
commission |
| consignar (Col)
|
to pay in |
| crédito |
credit |
| cuenta (bancaria) |
(bank) account |
| cuenta conjunta |
joint account |
| cuenta corriente |
checking account (AmE), current account (BrE) |
| débito |
debit |
| débito bancario (AmL)
|
direct billing (AmE), direct debit (BrE) |
| depositar |
to deposit, to pay in |
| descubierto |
overdraft |
| domiciliación, domiciliación |
direct billing (AmE), direct debit |
| bancaria (Esp)
|
(BrE) |
| empréstito |
loan |
| estado de cuenta |
(bank) statement |
| firma |
signature |
| girar |
to draw |
| gratis |
free |
| gratuito |
free |
| hipoteca |
mortgage |
| ingresar (Esp)
|
to pay in |
| interés, intereses |
interest |
| mensual |
monthly |
| número de sucursal |
bank routing number (AmE), sort code (BrE) |
| número de cuenta |
account number |
| pago |
payment |
| pago autómatico bancario (Chi)
|
direct billing (AmE), direct debit (BrE) |
| préstamo |
loan |
| préstamo hipotecario |
mortgage (loan) |
| reintegro |
withdrawal; repayment (of loan) |
| retirar dinero |
to withdraw money |
| retiro |
withdrawal |
| saldo |
balance |
| saldo deudor |
debit balance |
| saldo positivo |
credit balance |
| sobregiro |
overdraft |
| sucursal |
branch |
| talón (Esp)
|
check (AmE), cheque (BrE) |
| talonario (Esp)
|
check book (AmE), cheque book (BrE) |
| tarjeta de crédito |
credit card |
| tarjeta de débito |
debit card |
| tarjetahabiente (Mex, Ven)
|
cardholder |
| tasa or tipo |
rate |
| tasa or tipo de cambio |
exchange rate |
| tasa or tipo de interés |
interest rate |
| titular de una cuenta |
account holder |
| titular de una tarjeta |
cardholder |
| transferir |
to transfer |
| transferencia electrónica (de fondos) |
electronic (funds) transfer |
Taxation
Double-taxation agreements may exist between your country of origin and the country in which you are earning taxable income.
These avoid you having to pay tax both in the country you come from and in the Spanish-speaking country where you want to
live or work. The language of taxation is complex and you may need professional help in order to be able to claim all the
reliefs due to you.
Income Tax
The tax year in Spain runs from 1 January to 31 December and all Spanish residents must pay income tax. If you live in Spain for more than 183
days you will be classed as a Spanish resident and will be liable for tax. All non-residents who derive a profit in Spain
must pay tax and if you earn a fee for services rendered in Spain, expect the payer to deduct tax on your behalf. Tax must
be paid in June of the following tax year. Around May or June Hacienda (the tax office) will send you an income tax return to fill in.
In Mexico the organization which regulates and controls taxes is the SAT (Servicio de Administración de Impuestos). Residents are subject to income tax regardless of their nationality. Nonresidents are only taxed on income earned in Mexico.
Those who have temporary or permanent immigration documents are treated as residents. Foreigners working in Mexico on a visitor's
permit are not considered to be residents until they have lived there for 183 days in a calendar year. If you have a bank
account which pays interest, the bank will deduct withholding tax. Non-residents have no further tax liability. Residents
must include interest earned in their annual Mexican tax return. Rental income derived in Mexico by residents is taxed at
a maximim rate of 35%. Non-residents are taxed at 25% on their rental income.
In Argentina the tax year begins on 1 January and ends on 31 December. Tax is collected by the AFIP (Administración Federal de Ingresos Públicos). Income tax is known as el impuesto a las ganancias. Residents must pay tax on their worldwide income, but tax paid abroad can be offset against liability to Argentinian tax.
Non-residents only pay tax on their profits from Argentinian sources. Argentinian law divides taxable profits into the following
four categories: income from rentals; income from capital; income from business activities; income from employment and pensions.
The latter enjoy certain allowances and income above these is subject to income tax.
