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Re: British Newbies
By the way, who would you guys recommend for Health Insurance please?
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Re: British Newbies
Originally Posted by bobd22
(Post 13073640)
It is certainly a beautiful and varied area and as you say ticks many boxes for coastal and rural living.
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Re: British Newbies
Originally Posted by Richielisa
(Post 13073920)
By the way, who would you guys recommend for Health Insurance please?
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Re: British Newbies
Brilliant. Thanks mate
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Re: British Newbies
Originally Posted by Fred James
(Post 13074060)
if you end up in Málaga province, Prevision Médica is good value and they don’t bump up the price or reduce cover when you reach 65.
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Re: British Newbies
Originally Posted by bobd22
(Post 13074110)
I was with Prevision Médica before I got my S1 and although never needed to actually use them I always found them very helpful either by email or phone for any queries.
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Re: British Newbies
Have you thought about long term rental, certainly for the first year to make sure you really like the area?
Also remember that its a buyers market in Spain, you land and take your pick of thousands of properties the flip side to which is if you are ill/need to move back to the UK or die your property could be sitting on the market for years. I'd say rent for at least a year that way your mobile and when you find an area you prefer you pack your bags and move...can't do that if you have bought a property. |
Re: British Newbies
Originally Posted by bob_bob
(Post 13074137)
Have you thought about long term rental, certainly for the first year to make sure you really like the area?
Also remember that its a buyers market in Spain, you land and take your pick of thousands of properties the flip side to which is if you are ill/need to move back to the UK or die your property could be sitting on the market for years. I'd say rent for at least a year that way your mobile and when you find an area you prefer you pack your bags and move...can't do that if you have bought a property. |
Re: British Newbies
Thanks for all your help everyone. Probably one kast question if thats ok.
Does anyone have a simple explanation on how much income tax is applicable to pension and savings income when using your UK pension and savings plans, when you become a resident in Spain? Im looking for what percentage I deduct from our various income streams. Thanks again. |
Re: British Newbies
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Re: British Newbies
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Re: British Newbies
Personal allowance is roughly half of UK in Spain, though there are extra allowances for lower-paid. Also most people can claim 2,000 euro allowance for 'expenses' - but you don't need to show receipts etc.
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Re: British Newbies
Originally Posted by Joppa
(Post 13074575)
Personal allowance is roughly half of UK in Spain, though there are extra allowances for lower-paid. Also most people can claim 2,000 euro allowance for 'expenses' - but you don't need to show receipts etc.
Looks like you also have to liquidate pensions (for the tax free cash) and investments before becoming a resident so you dont incur Capital Gains Tax. |
Re: British Newbies
Originally Posted by Richielisa
(Post 13074555)
Thanks fir this. Looks very complicated and it looks like you have to pay tax on any income you take from savings and pension income. I was looking at personal aloowance which is up to c£12500 in the UK with no tax on accessing your savings but Spain looks far more complicated and a bit harsher....or am I reading this wrong? Cheers.
Savings and money already in a bank account don't attract any tax (although all interest and any 'winnings' from premium bonds do). My advice would be to liquidate as much as possible in the tax year before you intend to move over. That means, sell houses, take the 25% out of your pension, sell cars etc. Im due to put my first tax return in next year for 2021. Will have to do a 720 for the private pension pot (which is managed in the Uk) as its over the €50,000 My pension drawn from that pot will be taxed as income and I will show the 'winnings' from the premium bonds, but as me and the better half will file as a couple (she has no pension but has savings worth less than €50,000). With the amount I draw from the pension I hope to pay very little tax. We didn't need to take the 25% but did anyway as its sat in premium bonds and in the Spanish bank accounts to be used as we see fit (if I had left it in the pension pot, it was estimated that I would get another 8-10 years use out of it) and pay tax on that as well. But seeing as in 8 years I get my OAP (which will be taxed here) I moved it out as cash. Its highly unlikely that I will ever remove the whole of my pension pot, but Im going to try to, without paying too much in tax over the years. :) Although at the end of the day, we have to pay to live here and if I pay more than I would in the Uk, well so be it (the sunshine and lower cost of living more than make up for a few € extra going out) |
Re: British Newbies
Originally Posted by Barriej
(Post 13074585)
Personal allowances here are much smaller than the Uk for those not at retirement age. About half I think (could be wrong and someone will correct me)
Savings and money already in a bank account don't attract any tax (although all interest and any 'winnings' from premium bonds do). My advice would be to liquidate as much as possible in the tax year before you intend to move over. That means, sell houses, take the 25% out of your pension, sell cars etc. Im due to put my first tax return in next year for 2021. Will have to do a 720 for the private pension pot (which is managed in the Uk) as its over the €50,000 My pension drawn from that pot will be taxed as income and I will show the 'winnings' from the premium bonds, but as me and the better half will file as a couple (she has no pension but has savings worth less than €50,000). With the amount I draw from the pension I hope to pay very little tax. We didn't need to take the 25% but did anyway as its sat in premium bonds and in the Spanish bank accounts to be used as we see fit (if I had left it in the pension pot, it was estimated that I would get another 8-10 years use out of it) and pay tax on that as well. But seeing as in 8 years I get my OAP (which will be taxed here) I moved it out as cash. Its highly unlikely that I will ever remove the whole of my pension pot, but Im going to try to, without paying too much in tax over the years. :) Although at the end of the day, we have to pay to live here and if I pay more than I would in the Uk, well so be it (the sunshine and lower cost of living more than make up for a few € extra going out) |
Re: British Newbies
Originally Posted by Barriej
(Post 13074585)
Personal allowances here are much smaller than the Uk for those not at retirement age. About half I think (could be wrong and someone will correct me)
Savings and money already in a bank account don't attract any tax (although all interest and any 'winnings' from premium bonds do). My advice would be to liquidate as much as possible in the tax year before you intend to move over. That means, sell houses, take the 25% out of your pension, sell cars etc. Im due to put my first tax return in next year for 2021. Will have to do a 720 for the private pension pot (which is managed in the Uk) as its over the €50,000 My pension drawn from that pot will be taxed as income and I will show the 'winnings' from the premium bonds, but as me and the better half will file as a couple (she has no pension but has savings worth less than €50,000). With the amount I draw from the pension I hope to pay very little tax. We didn't need to take the 25% but did anyway as its sat in premium bonds and in the Spanish bank accounts to be used as we see fit (if I had left it in the pension pot, it was estimated that I would get another 8-10 years use out of it) and pay tax on that as well. But seeing as in 8 years I get my OAP (which will be taxed here) I moved it out as cash. Its highly unlikely that I will ever remove the whole of my pension pot, but Im going to try to, without paying too much in tax over the years. :) Although at the end of the day, we have to pay to live here and if I pay more than I would in the Uk, well so be it (the sunshine and lower cost of living more than make up for a few € extra going out) |
Re: British Newbies
Originally Posted by Richielisa
(Post 13074591)
Thanks. Thats roughly going to be our situation to be honest. Just a couple of questions - when you say tax year do you mean before the Spanish tax year (Jan to Dec)or UK tax year (April to April)? And savings - should they be held in Spain and if you take amounts from savings to supplement income is that taxed or is it just classed as return of capital? Cheers!
So all out by 31st Dec and its then tax free........ I did this with my pension 25% otherwise its taxable here..My cert is dated 31st Dec 2019 and we were due to move in may 2020 (didn't till aug but covid etc) The cash can be anywhere and as long as no one block is over €50,000 you don't even ned to declare it (no tax is due) Nope to being taxed as its your money, do what you want. I told the accountant what we were doing and I also asked at the tax office (cause I don't always believe what Im told) and no tax to pay on money in your pocket...... If you want you can keep it in a box under the bed (like my gran used to) :) Any tax you are due to pay in the UK is (or should be ) of no interest to Spain as you wont be resident at the time you take it. So sell the house and pay Uk tax (if its worth that much) in 2022, move here in 2023 and no extra tax to pay...... You only put the 720 in once as long as you only have a pension (gets complicated with shares, bonds etc) and the value doesn't change by over €20,000 each way (I think) but I don't have shares etc so can't comment on what happens here |
Re: British Newbies
Mate, that is excellent info. I will do some planning around this and start to organise ourselves. That should then give us a very nice life. Thanks again my friend!
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Re: British Newbies
It's funny but expats often think of rural Spain as somewhere that exists in the post war years. White houses, sleepy villages, donkeys, hot empty midday squares etc. Real Spain is nothing like that. It is like thinking that the real Scotland is a place where people all wear kilts, drink whisky and have ginger hair. Real Spain is probably more like Benidorm- which is actually very Spanish once you realise that the so- called British zone is tiny and most of the city is like Alicante or Valencia.
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Re: British Newbies
Originally Posted by Chipmonk
(Post 13074840)
It's funny but expats often think of rural Spain as somewhere that exists in the post war years. White houses, sleepy villages, donkeys, hot empty midday squares etc. Real Spain is nothing like that. It is like thinking that the real Scotland is a place where people all wear kilts, drink whisky and have ginger hair. Real Spain is probably more like Benidorm- which is actually very Spanish once you realise that the so- called British zone is tiny and most of the city is like Alicante or Valencia.
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Re: British Newbies
Originally Posted by Richielisa
(Post 13074581)
Thanks. Found a calculator on line that seems to reflect that - i.calculator.info/spain.html
Looks like you also have to liquidate pensions (for the tax free cash) and investments before becoming a resident so you dont incur Capital Gains Tax. |
Re: British Newbies
Originally Posted by snikpoh
(Post 13074886)
I transferred pension and savings to a Spanish bond when we moved here. It's far more tax efficient and there is no CGT to pay
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Re: British Newbies
Originally Posted by Richielisa
(Post 13074845)
I do agree. I suppose what Im saying is finding a place where like minded people have settled and have the capacity to support themselves and enjoy quality of life. The UK seems to encourage the opposite.
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Re: British Newbies
Originally Posted by Moses2013
(Post 13074897)
I don't think the UK is the opposite and like minded people who support themselves and "enjoy quality of life" can be found in any country or location. The big difference is that a lot of wealthy foreigners believe they are living the typical Spanish life and when you are retired with enough cash, the real problems can be ignored as long as they don't affect you personally. For most Spanish, quality of life is not about the maximum amount of sunshine hours you can have and many locals would be happy if they had the support you get in the UK.
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Re: British Newbies
Originally Posted by Richielisa
(Post 13074887)
Interesting. where can I find info on that please? Regards, Rich.
I'm not sure on the rules for making recommendations any more but here goes - My IFA in Spain is Paul Griffiths - +34 693506288 |
Re: British Newbies
Originally Posted by Richielisa
(Post 13074915)
Good point. It comes down to what we want. After over 40 years of non stop work, in all weather's, at all times of the day or night and in areas of conflict on some occasions we just want to relax in a nice place so this is what will most definitely suit us fir our retirement. Cheers.
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Re: British Newbies
Originally Posted by Richielisa
(Post 13074915)
Good point. It comes down to what we want. After over 40 years of non stop work, in all weather's, at all times of the day or night and in areas of conflict on some occasions we just want to relax in a nice place so this is what will most definitely suit us fir our retirement. Cheers.
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Re: British Newbies
If that's what the OP wants, that's fine - as long as they don't kid themselves that it's "the real Spain". They are not always well regarded by the local Spanish population, either (much like the second home owners in the UK who gradually buy up many of the properties in villages, putting them beyond the reach of locally born young people who have to move further away, and the shops and facilities the original residents depended on dwindle away, and the village school closes down because there aren't enough young families left. There's a small airfield at Trapiche not far from the area where the OP is considering moving to. A few months ago some nearby residents complained about the noise of light aircraft flying over their properties. The (Spanish) President of the flying club based there responded angrily by saying they should be ignored as the complaints were only from foreigners who were living in homes built illegally in the countryside. Areas where there are such high concentrations of foreign residents who are perceived to be more prosperous can also attract higher rates of house burglaries, as this article says (AlcaucÃn being one of the villages mentioned):-
https://www.diariosur.es/malaga/2015...830213705.html |
Re: British Newbies
Originally Posted by Lynn R
(Post 13074971)
If that's what the OP wants, that's fine - as long as they don't kid themselves that it's "the real Spain". They are not always well regarded by the local Spanish population, either (much like the second home owners in the UK who gradually buy up many of the properties in villages, putting them beyond the reach of locally born young people who have to move further away, and the shops and facilities the original residents depended on dwindle away, and the village school closes down because there aren't enough young families left. There's a small airfield at Trapiche not far from the area where the OP is considering moving to. A few months ago some nearby residents complained about the noise of light aircraft flying over their properties. The (Spanish) President of the flying club based there responded angrily by saying they should be ignored as the complaints were only from foreigners who were living in homes built illegally in the countryside. Areas where there are such high concentrations of foreign residents who are perceived to be more prosperous can also attract higher rates of house burglaries, as this article says (AlcaucÃn being one of the villages mentioned):-
https://www.diariosur.es/malaga/2015...830213705.html |
Re: British Newbies
Originally Posted by bobd22
(Post 13075018)
I would guess those figures re burglaries in the rural villages are actually the campo houses, within the municipality of the villages rather than the actual village houses. Like anywhere travelling burglars are around, rural houses with no very near neighbours can be a target.
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Re: British Newbies
Originally Posted by Lynn R
(Post 13075025)
Actually, I've seen quite a few reports on local FB groups of break-ins having taken place involving properties on urbanisations around that area.
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Re: British Newbies
Originally Posted by Richielisa
(Post 13074845)
I do agree. I suppose what Im saying is finding a place where like minded people have settled and have the capacity to support themselves and enjoy quality of life. The UK seems to encourage the opposite.
We bought our first plot of land in the Axarquia and built a holiday home way back in 1998 and I have to say our experience has been mostly positive (our experience in Portugal has been equally positive). The worst aspect was the so called illegal property situation which has been rectified with DAFO as per my post further up the thread. The demographics have changed in recent years and as the British have sold and left, Dutch, Belgian and other nationalities have bought properties in the area so it's a good mix of people. The property market has drastically improved too and houses sell quite quickly now. ​​​​​​Yo u could take an extended holiday to try it out first but I think you will like it. |
Re: British Newbies
Originally Posted by Moses2013
(Post 13074954)
Sure, what many often forget is that we won't be getting younger. I don't know what type of properties you are looking at but a lot of these villages are not always age friendly, so when buying it's something one shouldn't ignore. It's easy to get carried away and I suppose the dilemma is that your hobby means you have to be further out. We have a lot of trees surrounding our area and while it's nice, I wouldn't want to be too far out when a fire starts. You just need one crazy person, so it's something to consider when you are out in the countryside.
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Re: British Newbies
Originally Posted by Lou71
(Post 13075098)
I completely get what you are saying and that has been our experience in Spain. We split our time between Spain and Portugal these days but that's another story!
We bought our first plot of land in the Axarquia and built a holiday home way back in 1998 and I have to say our experience has been mostly positive (our experience in Portugal has been equally positive). The worst aspect was the so called illegal property situation which has been rectified with DAFO as per my post further up the thread. The demographics have changed in recent years and as the British have sold and left, Dutch, Belgian and other nationalities have bought properties in the area so it's a good mix of people. The property market has drastically improved too and houses sell quite quickly now. ​​​​​​Yo u could take an extended holiday to try it out first but I think you will like it. |
Re: British Newbies
Originally Posted by Chipmonk
(Post 13074956)
I guess that is why it is called the Dream. It is what you imagine it to be. And you imagine only the nice bits. Most of us in reality have no idea about Spain. How many expats watch the news or read the Spanish papers?. Not many. So I guess ignorance is bliss
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Re: British Newbies
Originally Posted by snikpoh
(Post 13074926)
I'm not sure on the rules for making recommendations any more but here goes -
My IFA in Spain is Paul Griffiths - +34 693506288 |
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