DeepSix

mmm as a "perpetual traveler" I would suggest that if my income is location independent and i am lucky that my income doesnt originate in any one country.. as in.. its not subject to anyone's tax rules..
As long as i dont break the 183 day rule in Spain.. Spain does not have any jurisdiction over my income, neither does the UK or any other country i "visit as a tourist"

It is a tax loop hole that isnt available to everyone and takes a very specific structure to achieve.. but it is very much possible an legal

Tadd1966

Deepsix
You most be tax resident somewhere especially in EU/EEA


The confusion of the 183 day rule has bee exasperated by many as the main rule - yes it will for many ex pats but NOT all


There are many tests as previously stated to determine your tax residency and tax obligations the 183 day rule is only one of them and NOT definitive


Many people commute between Spain & UK for work have interests in both countries and are dual residents non fiscal tax resident in one and tax resident in the other despite number of days (or even nights as some state i.e. Belgium) spent in either


As I understand it this applies to many countries (EU/EEA or not) that have bi lateral tax agreements


but apart from tax havens (which I have no idea how they work - so a bit of a guess) you must be tax resident somewhere and you cannot "float" around different countries thinking you avoid tax due by skipping the 183 day rule as the other tests will determine your tax residency

Horlics

Whilst listening to the popping sounds made as those pontificating about the tax rules circle their arseholes at an ever increasing speed before eventually disappearing up them, do what Dave said. Costa de la Luz, every time. Much better vibe the the Sol, what with the dense (in every sense of the word) population of British pikeys it has, 'specially on those sites. Added bonus, when a qualified advisor tells you about residency (fiscal and otherwise) you have the Portugal border nearby.

GlennLoz

Wow, you lot are in the know!!! Maybe I should do 5 months UK 5 months Spain and 2 months in Portugal? My government pension will taxed at source will that make a difference?

snikpoh

Maybe that would work but you still have to have a "main residence" somewhere. As far as the authorities are concerned anyway (I think).

teejaydee

The problem is that the so-called "183-day rule" is only one test of an individual's tax residency. Also, it is not applied in all countries.

The UK introduced in recent years a "Statutory Residence Test" to determine if an individual is tax resident or not. You can find out more about this test in the pdf file on the following page:

UK Statutory Residence Test

In Spain, the concept of "deemed tax residency" applies. This means that even if someone stays for less than 183 days, if the Spanish tax authorities deem the individual to have their "main base or centre of activities or economic interests" in Spain, they will be classed as tax resident. Please see the following page:

http://taxsummaries.pwc.com/uk/taxsu...dual-Residence

In Portugal, even if someone stays for less than 183 days, if they maintain an "habitual residence" in the country, they will be deemed to be a tax resident. Please see the following page:

Portugal - Residence of individuals

In summary, it's possible (though unlikely) you could become tax resident in all three countries. More likely is that you will remain tax resident in the UK and perhaps one of the other two. You can determine your exact status from reviewing the pages in the links.

jonboy

No that is a fib, you are not "sociable" You avoid contribution to society yet will expect others to carry you.

Dxf

Hola

I believe that Portugal has a better tax situation for ex-pats; second hand knowledge but I was told that they weren't worried about taxing your pensions. You need to check it's not an urban myth though

Davexf

AlanR555

Interesting comments about interpretation of the 183-day rule.

I retain a home in UK but live in Spain for about 170 days a year (with a
spreadsheet to monitor that). All my income is to my UK accounts and
funding of my life in Spain is by transfer from Sterling to Euros - partly
to my Spanish bank account and partly direct to Spanish concerns to
meet costs. I am on the local empadronamiento as my rental contract
is for the full year, with annual renewal and I have a permanent, green
NIE. My contention is that my tax residency is in UK and that worldwide
income should be of no concern to the Spanish authorities (as they will
benefit from my import of sterling resource to meet local expenses).

Is there any way in which I could be deemed tax resident in Spain?

teejaydee

A few questions to help determine the answer:

• You say you retain a home in the UK, but do you live in it? Where do you spend the time you are not in Spain?
  
• Do you work? If so, where do you work? From which country do you derive your income?
  
• Are you married? If so, where does your wife (and any dependent children) live?

shirley and anthony hide

DON'T TELL HIM PIKE !!!!

AlanR555

Yes. I live in my (owned) house in UK for seven months a year.
I am unemployed - all my income derives from UK.
I am not married.

AlanR555

Who is PIKE - a character from Dad's Army??

MikeJ

I would keep a record of your visits to Spain in a more tangible way than a spreadsheet - eg retain tickets and boarding passes with your entry and exit dates - if your 170 days are spread throughout the year. Having a 12 month rental agreement may be taken by the Spanish taxman of being evidence of a centre of economic interest and you may have to prove differently at some time - or maybe not.

Countryboy1

An important point IMO. You may be active NOW, but situations don't last forever. Assume that you both will get less active as you get older and may require more medical access, therefore think how you will deal with this here in Spain as you both age.
Not trying to be negative......honest!