Originally Posted by paulinjavea (Post 12158907)

Hi there

I was wondering what people think is the minimum amount needed to live reasonably comfortably in Spain at the moment ?

The reason that I ask is that me and my other half are thinking of retiring early this summer (I will be 48 and she will be 46) to our villa in Javea (which has no mortgage).

Our plan is to live off rental income from a house we own in the UK (no mortgage) supplemented by savings until my private pension kicks in in 7 years. And then state pension a few years after that too.

So for the next 7 years our estimated net income (net of tax and property management fees) is expected to be c, 28,000 euros per annum / 2,333 per month, rising to 40,000 euros per annum / 3,333 per month when my pension kicks in in 7 years time.

We don't have any kids or relatives to support, drink but don't smoke. We both cook well and so would only be looking to maybe eat out once or twice a week. And we have already both travelled extensively already so have no big desire to travel the world for the next few years.

We're just trying to work out whether we have enough money to do what we want to do what we do (hopefully we do !), sometimes the sums look fine and sometimes they look a bit tight.

Any help/advice would be gratefully received !

Thanks

Paul

Originally Posted by paulinjavea (Post 12158954)

Hi Moses

Thanks for the advice.

Yes forgot to say - we will have savings of c. 70,000 euros to rely on/acces in an emergency now/for the next couple of years and then access to personal pension pot too in 7 years when I turn 55 if necessary

Originally Posted by missile (Post 12159795)

I hope you are aware tax from UK rental income should be deducted at source for non resident landlords.

https://www.gov.uk/tax-uk-income-live-abroad/rent

Originally Posted by Mustard (Post 12160226)

Check out the Non-resident landlord scheme. Get form NRL1i

https://www.gov.uk/government/public...ividuals-nrl1i

You get UK rental income gross, but have to do a UK tax return. You will also have to declare the income on your Spanish tax return and pay the tax here. The allowances for landlords are better in Spain.

Originally Posted by Mustard (Post 12160226)

Check out the Non-resident landlord scheme. Get form NRL1i

https://www.gov.uk/government/public...ividuals-nrl1i

You get UK rental income gross, but have to do a UK tax return. You will also have to declare the income on your Spanish tax return and pay the tax here. The allowances for landlords are better in Spain.

Originally Posted by chopera (Post 12160935)

Yes Spain still allows you to offset mortgage interest payments against income tax,

Originally Posted by paulinjavea (Post 12158907)

...
So for the next 7 years our estimated net income (net of tax and property management fees) is expected to be c, 28,000 euros per annum / 2,333 per month, rising to 40,000 euros per annum / 3,333 per month when my pension kicks in in 7 years time.

...

Originally Posted by Fred James (Post 12160952)

Let me clarify that to avoid confusion.

Spain allows mortgage payments against the rental income which should reduce the income tax you pay on the profit. The entire payment is allowable, not just the interest. If the rental contract is for a long term let as a dwelling (rather than holiday lets) then there is a 60% allowance against the income.

In case someone should read this and assume that the mortgage tax relief applies to the purchase of your own home in Spain, that used to be the case, but sadly no longer.

Originally Posted by Fred James (Post 12161119)

Yes, you are right, the capital payments only apply to a home loan (sadly no more). I must admit, I never understood why they were so generous with home loans - the tax relief was immense although it did have a cap on it.