jonny512379

Hello All

I have been reading around but am finding it hard to get info for our situation

We (my wife and I + dog) are planning to "part move" to Spain around next April 2018.
We plan to rent a home (or villa) for initially 6 months, but also keep our home in the UK. This will mean we can travel between the 2 homes, spending around 50% of our time in Spain and 50% in the UK.

My questions are:

i am self-employed and work from home. This means i would also be working during my time in Spain. However my work is over the internet so none of my business would involve anyone/business within Spain (i basically run British owned websites + am a company director in the UK). i am registered for UK tax and all my self-employed income goes into my UK business bank. Will i need to pay part of my tax to Spain or just continue paying UK tax.
I have separate personal accounts, and will open a Spanish personal account to put in my living expenses, etc. (from my UK bank). I don't plan to do any other work in Spain.

As i will be treating the rental property in Spain, more as a holiday home, would this make me a resident? (and will i need to apply for resident-ship, etc?)
i will be spending up to 4 to 5 weeks at a time in Spain and then around the same time back in the UK.
I will also have my UK car with me for these times. is this allowed for this length of time?

My other question is where to move too....
we like the sun! and being close to the sea... and quiet beaches ;-)
I have a few friends Alicante way, but i was thinking more Malaga coast area, as i think it may be slightly warmer for more of the year?

And is the rent something they expect me to negotiate on? or is it the price stated?

Anyway, thanks for any advice i am offered And i hope to be joining you all soon!

Regards
Jon & Marianne

Rosemary

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst myself and BEVS moderate Europe. Please read the Site Rules http://britishexpats.com/site-rules/ adhere to them so that the site runs smoothly. Moderators are there to ensure that the rules of BE are maintained. 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.

Please let me know if you need any further help.

Rosemary

bolton wanderer

Hi Jon, welcome to the forum.

Providing you spend no longer than 183 days in Spain in any calendar year and your financial centre is based in the UK (house, business etc) Then you will be classed as non-resident for tax purposes. If you spend more than 90 days consecutively in Spain then you're expected to sign on the padron.(though a lot of people don't bother).

Providing your car is fully street legal in the UK (Tax, MOT & insured) it's OK to use it while you're in Spain. Please be aware that the Spanish police can check with the UK database, at the roadside, to confirm legality. Make sure you have your insurance policy and original V5 in the car at all times, along with 2 warning triangles & hi vis jackets for everyone in the car.

Can't help with rental issue.

Good luck

jonny512379

Thank you for the reply, i will have to count the days and go home if i get to 182 :-)
If i do over stay do you know how this works? as i will have already paid tax in the UK (or will be due too) and of course i don't want to pay tax twice on the same income :-( Would i just file a Spanish tax return but say tax was already paid to the UK so none is due in Spain, or vice versa, in that would i have a choice of where i pay tax?

The car will of course be fully legal in the UK, but i didn't know about carrying the insurance and V5 with me, so thanks for this, i will ensure i do this!

Jon

Fred James

You will never pay tax twice on the same income. If you become tax resident in Spain it is probable that you will still pay tax in the UK, but that can be deducted from the tax paid in Spain.

Generally, all income earned in the UK will be taxed in the UK irrespective of where you are tax resident so this is an important point. The exception is UK pensions (State or private) which (with the agreement of HMRC) can usually be paid gross in the UK to avoid all the double tax hassle.

You never have a choice of where you pay tax. That is laid down in the Tax Treaty between the UK and Spain.

Loafing Along

As to where to live the great advantage of the Malaga area is the airport which has superb connections and also , should you need it the highspeed train to Madrid.
Climate is not dissimilar to the Alicante area but tends to be more "extreme" hotter in summer and colder in winter, the last is important when you are looking for somewhere to live as many apartments are just not built to cope with cooler winter days being more focused on being cool in the summer.
At the moment long term rentals on the Costa del Sol are scarce - less people buying , poor exchange rate etc but there are plenty of shorter term properties that may suit if the timing is right - typical summer holiday homes that are rented out peak season and empty from October to April ( except for Easter ). There rentals tend to be negotiable as owners are keen to keep the place occupied. Long term rentals little chance of negotiating at the moment.

jonny512379

Thank you for your reply, it is great info about the extremer weather around Malaga, we are looking for more all year round warmer weather, so maybe Alacante is the place for us.
We had found on lots of rentals on kyero for Costa del Sol but less at the price we are looking for around costa blanca :-( but maybe it is better to actually visit than look on websites....

Thanks again for the info, it is much appreciated!

jon

jonny512379

thanks for the info, this is great to know i don't have to pay twice :-)
paying Tax in the UK is something i would prefer, as i know how the tax works here + can read all the forms too, so if my earnings are taxed here and then i may only need an accountant (ideally for ex pats, that i assume there are many) to sort out my Spanish obligations, etc :-)

Thanks
Jon

cermignano

You need a gestor to sort out your affairs. Wwe have quite a good tax allowance in UK so maybe better to keep to UK - £11,500, I think