weirdfish

having spent the last 15 years moving from country to country i have decided to settle down in one place (south of spain) but im finding information on tax (or even trustworthy tax professionals) hard to come by.

I dont work but i will be resident in spain my husband does work but he will NOT be resident in spain. will i be taxed on money he earns but i bring into spain for living expenses?

or does anyone know a good tax consultant in the costa del sol area that could help me with this?

thanks in advance

Fred James

Can you be more specific about where he works, what nationality is the company he works for, where does he pay tax and how many days a year does he spend in Spain.

kayley

My husband commutes to the UK where he is resident and pays tax. I am resident here but as I wasn't working until recently, I wasn't taxed on money he earned. I was considered to be anon tax payer.

I was still entitled to health care under the reciprocal agreement with the uk. Hope this helps.

Fred James

He may think he is resident in the UK and the UK taxman will be happy to take his tax but you didn't answer my question - how much time does he spend in Spain? If it is more than 183 days in a year he will have to pay tax in Spain. Also the fact that you live in Spain will make him deemed to be tax resident unless he can prove otherwise.

You say you have health cover under the reciprocal arrangements - what arrangement is that? Are you talking about the European Health card - EHIC? That only provides emergency care and if you are a Spanish resident then you cannot use a UK issued EHIC as it is only valid for tourists.

Hillybilly

(that's because it wasn't the same person )

Fred James

Well spotted Hilly.

Maybe the OP will get round to it eventually!

kayley

As my husband is paying national insurance in the UK, myself and my children are entitled to health care here as this is where we live. We don't claim on the EHIC but used a different form issued by the DHSS. I'm unable to remember the number but if anyone wishes to find out, I'm sure the DHSS will tell them.

I did have a problem getting the Spanish social security office here to understand the entitlement as the form is not one that they were used to but I persevered and managed to get everything set up.

The limited time that my husband spends in Spain means that he is a UK taxpayer.

Fred James

Yes, the form is the E109 for dependants of UK workers who are paying National Insurance contributions in the UK.

The tax issue can get complicated as you can end up being tax resident in both countries as the UK apply a 90 day rule for tax residency whereas the Spanish apply the 183 day rule.

Just because someone is tax resident in the UK does not necessarily mean that they are automatically not tax resident in Spain.

bil

Most interesting. I shall have to look into this as my wife was told she was not entitled, even tho I will be paying NI.

weirdfish

sorry I have been running about like a chicken without a head lately!!

he will be living in Bahrain (so not paying tax) and will be spending around 60 days a year in Spain.

Health insurance for myself and children is covered by private medical from his company so that isnt my main concern.

Did that help clarify my problem a bit better?

and thanks for the replys

oh and edit we are both UK citizens although neither of us has lived there in 15 plus years and he works for a global oil company.

weirdfish

I think i found my answer - he will be taxed as if a spanish resident the below quote is from a spanish tax web site.

im not sure what "unless you can prove otherwise" would require....

Unless proven otherwise, you are presumed to be a Spanish resident if your spouse lives in Spain and you are not legally separated even though you may spend less than 183 days in Spain.

Fred James

Yes, I referred to that point in my earlier reply.

I assume that you have to prove that you are tax resident in another country. If he was working and paying tax in the UK that would not be a problem but living in Bahrain might prove difficult if he is not paying tax there.

It may be possible to get some sort of residency certificate which might be OK. Frankly I think it is a case of keeping your head down on this one. If they ever raise the issue (very unlikely) you can deal with it then.

As you will have no income then I doubt that you will be making a tax declaration. Where you might have a problem is if you wish to be considered tax resident to gain the tax benefits in areas such as CGT and IHT. To do this you would need to prove tax residency in Spain and that could raise the issue.

bigglesworth

Fred,
Separating out Nat Insurance, healthcare and Tax a bit.
I will be in Spain 300 + days a year. I will be in the UK for about 15-20 days a year, and will pay Nat Insurance and Tax on earnings of about £8K. My OH will be in Spain 320 days a year. We both intend to declare ourselves resident in Spain, and pay tax as appropriate on all other income (some of which may also be taxed in the UK, we understand).
My question is, where does that leave me as far as health cover is concerned?
Any advice or information gratefully received.

jdr

Names not Fred but....

No health cover at all in UK if you declare you are Spanish resident, the stamp will cover your pension for later, although you will be leaving the UK too soon and leave yourself short on required years payments unless you pay till you retire, unless they change the rule next year.

No cover in Spain unless you are retired, on a works contract, or paying into the system as self employed, unless you qualify for up to two years cover in Spain if your stamps in the UK are up to date, you will have to apply to DWP for the form to give to Spanish Social Security before you leave UK.
After this you will need private cover until you retire.

bigglesworth

JDR,
Thanks for that. Not much point in paying Nat Insurance then. So I will see if I can get it paid in Spain.