Do you have to become officially resident after staying in Spain over 6 months?
#1
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Do you have to become officially resident after staying in Spain over 6 months?
My husband and I are looking into moving to Almeria, but I read on a number of sites that if you stay in Spain more than a total of 180 days in one year you HAVE to become resident, is that right?
It also said, if you own property in the UK, as a Spanish resident you have to then pay tax on any income from that rental property to Spain. I am a property owner in The UK, so if I understand this right after 6 months I'd have move from paying my taxes in the UK to paying them in Spain?
Here's what one website, Think Spain - said (Hot Topics - Residence & Tax - Residency said)
You will become resident for tax purposes in Spain if: You spend more than 183 days in Spain during one calendar year. You become liable whether or not you take out a formal residence permit (Residencia). These days do not have to be consecutive. You do not become resident for tax purposes until the morning of the 184th day. Temporary absences from Spain are ignored for the purpose of the 183-day rule unless it can be proved that the individual is habitually resident in another country for more than 183 days in a calendar year.
It also said, if you own property in the UK, as a Spanish resident you have to then pay tax on any income from that rental property to Spain. I am a property owner in The UK, so if I understand this right after 6 months I'd have move from paying my taxes in the UK to paying them in Spain?
Here's what one website, Think Spain - said (Hot Topics - Residence & Tax - Residency said)
You will become resident for tax purposes in Spain if: You spend more than 183 days in Spain during one calendar year. You become liable whether or not you take out a formal residence permit (Residencia). These days do not have to be consecutive. You do not become resident for tax purposes until the morning of the 184th day. Temporary absences from Spain are ignored for the purpose of the 183-day rule unless it can be proved that the individual is habitually resident in another country for more than 183 days in a calendar year.
Last edited by ayseha; Mar 4th 2016 at 1:15 pm.
#2
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Re: Do you have to become officially resident after staying in Spain over 6 months?
Yes, it is right.
Whether you pay tax on your property in the UK or Spain depends on the type of tax. I believe that tax from rental income remains taxed in the UK. The point is, you have to put in a report about your financial activities and Spain will decide what tax you owe. You might pay some in the UK and some in Spain, but you won't have to pay tax twice on the same money.
What happens if you don't do it.... the same as in the UK. If they find out that a UK resident is not declaring earnings they have the option of fining you for being naughty. Spain has that option too.
This bit.... "but I'm not sure if after only 6 months we'd be quite be ready to become officially resident there", is your problem. If you are here 184 days you don't get the choice. If you are not quite ready, go home.
Whether you pay tax on your property in the UK or Spain depends on the type of tax. I believe that tax from rental income remains taxed in the UK. The point is, you have to put in a report about your financial activities and Spain will decide what tax you owe. You might pay some in the UK and some in Spain, but you won't have to pay tax twice on the same money.
What happens if you don't do it.... the same as in the UK. If they find out that a UK resident is not declaring earnings they have the option of fining you for being naughty. Spain has that option too.
This bit.... "but I'm not sure if after only 6 months we'd be quite be ready to become officially resident there", is your problem. If you are here 184 days you don't get the choice. If you are not quite ready, go home.
Last edited by Horlics; Mar 4th 2016 at 12:44 pm.
#3
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Re: Do you have to become officially resident after staying in Spain over 6 months?
thanks so much for that info, much appreciated, yes happy to pay tax to either Spain or UK, was just surprised that you must declare residency after only 180 days, looks like we'll need to make up our minds before 6 months but maybe that's a good thing
Last edited by ayseha; Mar 4th 2016 at 1:16 pm.
#4
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Re: Do you have to become officially resident after staying in Spain over 6 months?
There seems to be some confusion-
Two separate issues:
RESIDENCY is after 90 CONSECUTIVE days,
183 CUMULATIVE days in any tax year ( Jan to Dec) requires the resident to register for/ pay tax.
Two separate issues:
RESIDENCY is after 90 CONSECUTIVE days,
183 CUMULATIVE days in any tax year ( Jan to Dec) requires the resident to register for/ pay tax.
Last edited by Dondurma; Mar 4th 2016 at 1:34 pm.
#5
Re: Do you have to become officially resident after staying in Spain over 6 months?
Dondurma is right, if you are in Spain for more than 183 days in any calendar year you automatically become 'tax resident' there is no choice in the matter and you have to pay your taxes in Spain. After 90 days in Spain you should get a residencia and sign on the padron. This actually helps Spain as they get more money from the EU because of the number of residents. Residencia and tax resident are two totally separate things.
#6
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Re: Do you have to become officially resident after staying in Spain over 6 months?
thanks Mikelincs, that makes sense. Do you need to keep your own record of when you reach 180 days and then contact the Spanish tax office to let them know you've reached 180 days or do they automatically contact you?
Last edited by ayseha; Mar 4th 2016 at 2:45 pm.
#7
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Re: Do you have to become officially resident after staying in Spain over 6 months?
Dondurma is right, if you are in Spain for more than 183 days in any calendar year you automatically become 'tax resident' there is no choice in the matter and you have to pay your taxes in Spain. After 90 days in Spain you should get a residencia and sign on the padron. This actually helps Spain as they get more money from the EU because of the number of residents. Residencia and tax resident are two totally separate things.
#9
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Re: Do you have to become officially resident after staying in Spain over 6 months?
Gosh it's more complicated than I realized. I had in mind that I'd go to Spain for a year to to get an experience of what its like before fully relocating, but it sounds like I'd need to make up mind much sooner! Thanks so much for all the advice everyone, it's great to have this resource.
Last edited by ayseha; Mar 4th 2016 at 2:50 pm.
#10
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Re: Do you have to become officially resident after staying in Spain over 6 months?
One thing if you sign on the foreigners register after 90 days (residencia) then you should not be forced to sign on the padron! That should be done when Spain becomes your habitual home. You may be there more than 90 days but less than 183 and remain UK tax resident rather than Spain. In that instance signing the padron could work against you. Don't forget also that to sign the foreigners register(residencia) you will need to prove adequate income medical cover etc. Also if you do make yourself tax resident in Spain you will have to complete the form 720 declaring UK assets bank accounts, savings, investments etc valued over 50,000 Euros in each category and property owned in the UK.
#11
Re: Do you have to become officially resident after staying in Spain over 6 months?
No, when we moved over we were on the padron, signed up for residencia withing a week, we thwn after a couple of months saw a gestor to get our tax details sorted, it was helped by the fact that we only had pensions, and our first tax bill was some 65 cents.
#12
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Re: Do you have to become officially resident after staying in Spain over 6 months?
Just one thing to remember ayshea the tax year in Spain runs 1 January to 31 December you could use this to your advantage by timing your arrival in Spain. The 183 days applies to a tax year, so if you arrive in July you can use 183 days in that tax year and then from 1 January you have another 183 days for that year before becoming tax resident. The 90 day rule can be got over by a break anywhere outside of Spain for as little as one day. So maybe the odd overnight trip to Portugal, France or even short trip back to UK could get around that one. Of course it would be advisable if you did that to have either travel insurance or private health cover as you would be pushing the EHIC for that length of time but many do. Just some options that may give you a little more time to decide on residency. Of course don't be surprised when you get to know people in Spain who have been there for years and complied with none of the rules but that is up to them, what I have said above is fully within the rules laid down.
#13
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Re: Do you have to become officially resident after staying in Spain over 6 months?
Don't forget also that to sign the foreigners register(residencia) you will need to prove adequate income medical cover etc. Also if you do make yourself tax resident in Spain you will have to complete the form 720 declaring UK assets bank accounts, savings, investments etc valued over 50,000 Euros in each category and property owned in the UK.
Re proving medical cover for foreigners register, I thought as a British & EU citizen we would be covered ? Or would I have to prove extra private cover ?
Also is there a time limit to how long you can be abroad on the EHIC?
Last edited by ayseha; Mar 4th 2016 at 3:25 pm.
#14
Re: Do you have to become officially resident after staying in Spain over 6 months?
Gosh it's more complicated than I realized. I had in mind that I'd go to Spain for a year to to get an experience of what its like before fully relocating, but it sounds like I'd need to make up mind much sooner! Thanks so much for all the advice everyone, it's great to have this resource.
It can be complicated getting settled here and often very, very frustrating
Good luck
Steve
#15
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Re: Do you have to become officially resident after staying in Spain over 6 months?
Mike that is right because you wanted and intended to be fully resident from the start. Maybe the OP wants to take time to come to that decision hence why I pointed out the options and if not sure about residency my advice would be do not sign on the padron until sure you wish to be fully resident.