It used to be easy for soon-to-be- retired EU citizens to
stay in Marbella for a few months and test what living at the Costa del Sol will
be like on a permanent basis. During off-peak season long-term rentals for
villas, condos and apartments can be very reasonable indeed, even in a glamour
resort like Marbella.
However, Spain’s government recently introduced a “proof of
income” measure for EU citizens planning to stay more than 3 months. In an
effort to “crack down on migrants” Spain’s government has asked international
embassies, consulates, municipal councils and the National Police to encourage
non-Spanish residents to get acquainted with the new residency requirements. At
town halls in Costa del Sol resorts and on various embassy websites those
contemplating a 3-month trial stay or longer will find ample information on the
new measure.
The new ruling will force EU nationals registering on the
country’s “Registro Central de Extranjeros” or National Foreigners Register for
the purpose of being granted Spanish residency to produce proof of “sufficient
income” that will permit them and their families to live in Spain, if they are
not working in the country. In addition, applicants for Spanish residency may
also be asked to provide evidence of public or private healthcare insurance.
For those retiring to Marbella it is important to be
realistic how far an EU pension will stretch at the Costa del Sol. Private
healthcare insurance can be very costly. In addition, pensioners from the UK
should ensure their pensions are paid in Euros to protect themselves against volatile
currency fluctuations that can wipe out large chunks of income.
Testing, if Marbella life is affordable is far less risky
when renting a place for up to 3 months – that way relocators can experience at
first hand all those irritating little costs the embassy’s website forgot to
mention without committing to a permanent move and all the costs that entails.
Despite all that, the affordability of Spanish homes
compared to other EU countries such as Britain still makes the Costa del Sol a
target for international buyers hoping to relocate. While in some parts of the
country there’s little change in living costs compared to the UK, recent studies
have shown that living at the Costas is more affordable than living in
rain-soaked Britain. Living a mortgage free life after selling up at home is the
greatest financial aspiration for many people – and at the Costa del Sol this
is certainly possible.
Already economists are predicting UK house prices will rise
by 2.1 % next year and around 5% by 2015. The Centre for Economics and Research
recently stated that in five years’ time the average UK home will cost
£261,000. With prices for new apartments in Marbella starting at around 50% of
that figure, it is easy to see why relocation is such a tempting prospect.
Although some districts of Marbella and neighbouring resorts
like Estepona or Fuengirola can be rather expensive with regard to housing and
living expenses, there are parts of the Costa del Sol were living is
comparatively cheap.
In sun-soaked Elviria, a neighbourhood in the east of
Marbella, brand-new 2 and 3-bed apartments can cost as little as EUR 174,000
and resales can be even less. Typically, luxury departments in sought-after
parts of the city cost around EUR 250,000, but there are some developers
selling golf and sea view apartments for around 50% of that. A 4-bed, 3-bath
resale villa located in Elviria will cost between EUR 395,000 to EUR 500,000
depending on how close the property is in relation to the beach and Marbella’s
city centre.
Resale 2-bed, 2-bath apartments with terrace in an
established urbanisation like Benhavis or Marbella East, offering communal
swimming pools, sea views and landscaped gardens cost between EUR 87,000 and
EUR 100,000, making the dream of a mortgage free life at the sunny Costa del
Sol a reality.
For those still needing finance, the monthly repayment for a
EUR 100,000 property – typically bought with a maximum of 65% to 70%
loan-to-value mortgage – will be approximately EUR 341.00 per month.