Lifeline for Recession-Hit Expats

Expatriate British and Irish residents in Tenerife may be more likely to feel the recession pinch than other residents on the island.  Both retired and working residents are particularly vulnerable to a combination of factors brought about by this recession and according to Tenerife Lifeline, a lack of information has made dealing with these problems even worse.

A weak pound has substantially reduced any income that may have come from the UK, which has directly affected many retired residents claiming a pension as thousand are lost in currency transfers to Tenerife.  An increasing number of remote workers who have settled in Tenerife, earning money from the UK and Ireland, have been equally affected.
The value of the Pound has had a wider impact on the Tenerife local economy which has relied on the large number of tourists from Britain.  Local Tenerife businesses that have focused on this dwindling number of tourists are already finding it harder to make ends meet as fewer customers pass through their doors.  Amongst these, the majority are bars and restaurants owned by expatriates from the UK.  Some have already closed their doors, laying off their predominately British staff, while others have slimmed down staff numbers. 

Many of the staff working for these small businesses are employed on a ‘cash in hand’ basis.  They will not be able to claim benefits or take advantage of government’s initiatives to help those who are paying mortgages.  Others who do have work contracts will find the unemployment benefit that they qualify for will be woefully inadequate because they work on part time contracts, another common practice amongst small businesses in Tenerife.  A worker may have a contract saying that he is working just 12 hours a week when he is in fact working 40 or more.  Employers use part time contracts to save on the very large social security contributions that they have to make for employees. 

It is not just the bars who have found the recession particularly hard, but also the other major employer of expatriate British and Irish workers in Tenerife, the property industry.  As demand for new properties has shrunk due to the credit crunch and the availability of mortgages, many businesses owned and staffed by expats are struggling.  Estate agents, building companies, property developers and even furniture retailers have been affected.  The decline in demand for property has also prevented many expats from unlocking the capital they have tied up in their homes or investments, as selling has become more difficult.

The effects of recession may be hitting expats in Tenerife hard, but it is made worse because many British and Irish residents are unaware of how the Spanish system works and how to benefit from it.  Assumption and misinformation are rife, but many people are deterred from getting professional advice because of the cost.  An increasing number of residents have discovered Tenerife Lifeline, a book written in English that answers all these questions.  Clearly explaining expat’s rights in all aspects of life, from employment, health to mortgages, credit and tax: relevant whether you own a business, work for one or you are retired.  The book is very practical, showing you how to go about getting what you are entitled to.  Available at €9.95 from shops all around the island or you can order it right now, this invaluable guide is helping more and more of Tenerife’s expats through the recession.