cazzie218

Hi

We are thinking of moving to the Canary Islands when my husband retires in a couple of years time. What sort of monthly income would we need to live a reasonable lifestyle and which island is cheapest to live on. We are thinking of Gran Canaria as we have been there a few times and really liked it.

Any help appreciated.

Thanks
Cazzie

Rosemary

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

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Rosemary

Boseley

Hello,

I live on the Meridian Isle of El Hierro, apart from Petrol, prices do not differ much on any island, however we are told that the smaller islands are more expensive.

For two running a car and two properties, 1000 GBP monthly covers our costs, nights out and holidays are extra. However we do not pay rent, have any heating bills, water is mostly free. healthcare is also free but with a small charge for prescriptions.

Gran Canaria was our first choice, I first arrived there in the spring of 1962, on a ship from Trinidad. However in the meantime we discovered El Hierro and found it suited our way of life better, we still visit Gran Canaria, only 50 minutes by plane. I would suggest that you avoid the tourist areas, cheaper elsewhere, rent at first, then you can move easily if you wish.

Best of luck.

cazzie218

Thanks Rosemary and Boseley

cazzie218

I think we would have around 1200 euros a month. Probably buy a property so no housing costs. I guess from your post (Boseley) we wouldn't be living in poverty

Cazzie

rupert.b

Hi Cazzie!
I've been researching the Canaries, (particularly Tenerife) as a retirement destination recently and I think you may find some of the facts and figures useful.
- In terms of services, infrastructure, culture, communication, and cost of living, Spain in general makes a lot of sense as a retirement destination; and property market crisis means great opportunities for investment.
- Spain, including Canary Islands, still has one of the best health care systems in EU (world famous Alzheimer's Center is located in Puerto Cruz) with better access to quality generic medication than in most North European countries.
- The Canaries, of which Tenerife is the largest and probably the most remarkable island, offer the best and perhaps the most affordable coastal living options in Europe with perfectly healthy climatic conditions for the elderly.
- A disadvantage of Tenerife is perhaps that it has become a little bit too "touristic" over the last decades to call it a perfect retirement haven, and you are likely to be bothered by all sorts of swindlers trying to sell you useless things and chased by "sophisticated touts" offering tricky contracts for worthless time-share apartments. It's not that all such contracts are fraud, but it is not easy to make them out for an average traveller. This view is backed up by the UK's Office of Fair Trading (OFT) who suggest that every year 400000 UK consumers fall victim to these scams in destinations such as Tenerife, the Costa del Sol and Gran Canaria... Well, many people, though, find it amusing. In my experience most of these tourist-chasers are absolutely harmless, but I admit they can become quite irritating eventually. By the way, that's the reason why you need a reliable property counsellor.
Please have a look at the figures below to get a better idea of the benefits Tenerife (and other Canary Islands) can offer to an EU retiree.
Less Value added tax in Tenerife. This tax is called I.G.I.C in Tenerife and is 7% (upped by 2%) The same tax is called IVA in mainland Spain and is 21%! Therefore, it's much cheaper to buy new property or land on the Canary Islands.
Basic costs of living in Tenerife:
Telephone landline: aboout EU 15/month (with IP telephony is becoming increasingly popular and cheap)
A normal ISP may cost between EU 18 and EU 45 roughly.
Minimum electricity costs: EU 20/per lowest tariff to EU 60 a month
with minimal taxes of about 1%.
with a basic charge of EU 9,03 and 1kWh at EU 0,11248 domestic (the latter being subject to frequent change)
Municipal tap water: About EU 6,50/month
Trash collection: About EU 6,50/month
Municipal property taxes are very low compared to Great Britain, for example, but rates are different with all Tenerife municipalities. For a property worth EU 50000, you may expect to pay tax of roughly EU 85/year
Wealth tax has been removed on Tenerife Island since 2009
A friend of mine recently declared income tax and had a tax exemption (tax free up to) of about EU 9700!
Other expenses living in Tenerife:
Petrol has always been a very cheap factor of living in Tenerife. It is now in the region of EU 1,10, but goes up and down a little. Car insurances are not so cheap, though, but cheaper than in most European countries.
Interesting partial health insurance.
You can have a very good value for money hospital insurance by DKV (seguro de salud) in Spain for as little as EU 53 a month (in 2014) even when you are 65 years old already! Of course, doctor visits for preventing and general check-ups are not covered. That's the least expense, isn't it?
Some retirees reportedly have operations in Tenerife. They were refunded by their overseas health care. Now, all you need is the European blue card to profit by local health care. Spanish public health centres are not only in all towns, but often in every suburb.
Please, find out from your overseas medical aid organization or social security how to go about getting the blue card which entitles you fully to European sharing of health care. You can even use it while on a short holiday, if need be.
You can also apply for the "Form 106":
by writing to:
Pension Service
Medical Benefits
Tyneview Park
New Castle Upon Tyne
England NE 98 1BA
Grocery and dine-out prices are quite low in Tenerife. By the way, most foodstuff has gone up by almost 5% since 2008, while value added tax of 5%, which is included in above prices, is as low as before.
The Tenerife eating places (which are many) are cheap compared to those in North Europe.
Tenerife carnival, which is not only much sought after by the large Tenerife gay community, but is also tops for all who retire on the island.
A couple of words about the Tenerife green document (free) which helps save money.
People call the Tenerife European Resident Document "the green one" for most of its color. Once, you are living in Tenerife more than 3 months, you should apply for it at your local police station. You need to bring a document which states that you live in Tenerife which is called "documento de empadronamiento". You get that at your local town hall. For example, use Europe's resident permit together with your passport including a photocopy of it to travel from Los Christianos for EU 18 to La Gomera by ferry. I consider this price to travel to the neighboring island as dirt cheap. Before, a proper "Residencia Permit" was required to enjoy living in Tenerife.
The Residencia, also often called Tajeta de Residencia (residence card) is a hassle and also costly to get. However, the 'green document' also obliges you to declare income tax. If you don't have earnings, you will not get any written order from the Tenerife "Receiver of revenue" called Hacienda to declare any. This means playing with fire, which could make you a tax dodger.
Please note - I am by no means a tax expert! The above information is obtained from different sources (reliable as they are), where the terminology is, but a little complicated (you can imagine), but it is just that - information. If you are considering taking any action regarding your existing or future pension, I strongly advise that you discuss it with a pension professional. Pop in here to begin with https://www.gov.uk/living-in-spain or here on general retirement pension issues https://www.gov.uk/state-pension-if-you-retire-abroad
Hope you aren't getting an information overload as yet )
Best of luck.
Rupert

Dick Dasterdly

I lived in the Canaries for best part of ten years and Tenerife was always the cheapest.
In addition it is far more diverse and has far more to offer all round than the other islands IMHO.

cazzie218

Thanks for all the info. There is such a lot to think about and look into

Cazzie

tommy.irene

I live in Playa del Ingles in Gran Canaria.. rent is €500 month for 1 bedroom apartment...with water and electric...thats all in...if you live and go where the spainish go to shop..you can live here for €1000 a month..[my rent worked out at £350 for a month..]