Andalucia 101: Pay Cash, Get a Discount

Spain has had an off-the-grid economy for years. Even in the age of the euro. It's a white-and-black economy that mixes over-the-table income with under-the-table cash transactions for every day goods and services.

My local electrician, for example, works for a big electric company and fixes houses like mine for cash on the side. A Ronda writer I know, has 'stated' income of 12K euros per year, but his actual income is probably 3-5X that. My property manager also leads a double-life. She collects a salary from a local hotel. On the side, she works for cash for me and others.

Here's the deal if you want to live in Spain. If a local wants cash for something, I always want a discount in return. Always. 10 percent is automatic. 20 percent off for larger transactions. Usually over a hundred euros.

I am not ashamed of being a cash-discount guy. In fact, I celebrate being frugal with my cash. If you pay a taxes on income earned outside of Spain, why should you subsidize Spain's black economy with cash. If you do, you are a sucker. Plain and simple. Mind you, I don't get righteous about paying cash for goods or services in Spain. But I do play the cash discount game like a local ... as best I can.

Today, I ask for discount for almost every cash purchase I make in Ronda. I ask for 10 percent off from my corner grocer, the local hardware guy, and my butcher. I also ask for 20 percent off for larger purchases at clothing stores, furniture stores, and larger jobs from trades people. If I don't get my cash discount, I am always prepared to walk away. If I live in Ronda, I want a Ronda price. For practical reasons, I will use a credit card or do bank-to-bank transfers in Ronda. But I do use credit cards less often in places like Andalucia.

Serrania Bartering is Alive and Well, Too.

Bartering also is alive and well in the Serrania. I have friends who live and work full-time in Ronda. In slow times, they are very practical about trading goods or services and they bargain hard with trades. I know artists and trades people, for example, who will swap their work to help clear a personal bill with another merchant. A local grocer or a barman. Here's where it gets interesting. Many service trades, such as masonry work, have a lower value than cash. There are a glut of masons in Spain. On the other hand, premium goods such as in-demand handmade things, nice clothing or electronics are usually traded at a higher, euro-for-euro price. Particularly, if these goods can be resold or traded again to someone else. Get it?

A little sunshine on how this works. I watched my expat friend, whose mother is Rondeno, settle a bill with a local repairman years ago. The mason wanted a premium rate for a simple three-hour job. Hombre, you're killing me, my friend joked. "I live in Ronda, my wife and mother were born Ronda, and you and friends play basketball with me. Is this a white job for expats or a black job for Rondenos?" The mason smiled, took 25 percent off his bill and asked for a free lunch at my friend's bar. He got it.

Now that's off-the-grid living.