Emmaandrichi

I am curious to know more about the process of applying for Spanish residency.
Additionally if I get a job in Spain, or register self-employed and make my money over the internet, would they contact the UK? What is the legality of it all? ..and tax?

Thanks,
E

Joppa

Residency and tax residency are two separate things. Nowadays tax authorities share individual details with their counterparts abroad to cut down on fraud and underpayment. So this is something you need to attend to, but usually after you get residency, though you may want to sort out your financial affairs in advance of your move, so you pay the least amount of tax in either country you are legally obliged to cough up.

As for whether the national police or foreigners' office contacts UK authorities, I can't see why they should, though they are supposed to check on the applicant's criminal record (usually only in Spain) to weed out potential troublemakers.

Barriej

Nope to the first bit. They don't care as long as you fulfil the requirements.
If you get a job in Spain they don't care where else you worked, you will pay tax in Spain on money you earn in Spain (even over the internet if your base is in Spain)
As Autonomo you will pay the social security of about 280 euros a month (even if you don't earn it)

As to legality. Its legal why would it not be? Spain is not some 2bit backward country. And you will pay tax at the rate every other tax payer would pay.

Emmaandrichi

Hi Barrie,

Thanks for this. I have not had a job that has earnt enough to pay tax before so it is a new area for me. But I want to teach English out there. If the economy is in trouble and I can't find a job I wanted to work online. Would that make me an autonomo? 280 euro per month is a lot of money for me. So the legality query is not asking about Spain, but about me.

The other thing I was thinking about was to be in England a few months of the year to earn money which I could take to Spain (I just need health care and 7000€ in the bank, right?)

Cheers,
E

snikpoh

Just to be clear, as the UK is still part of the EU (ish), we don't actually apply for residency. We have a right to it provided we meet any national criteria .

So, the UK doesn't need to know where one is resident.

britishbull

Spain does not do split tax years so if you come in 2020, the last chance to get easy residence under EU rules, then you will be taxed for the whole of your income in 2020 including that from the UK. Spain's personal allowance is less than the UK's so even though you did not pay tax in the UK you may pay it in Spain. That Spanish NI contribution does get you free health care and the council tax will be a fraction of what you pay in the UK and you can possibly save on rent... tax authorities speak to each other so all your UK benefits will be ended, you may have to pay some back if you don't tell them. Last chance to get residence (probably) so have to weigh up how much that is worth to you given that post virus UK will probably have to go into austerity plus.

bobd22

Not if your 183 days start after July which given current situation is probable? The OP in those circumstances would not become tax resident until 2021 but then as you say would be taxed for the whole of 2021.

Joppa

183-day rule is one of several that tax authorities use to determine tax residency. The others include whether your centre of activity is in Spain, and where your home and family are based. So depending on personal circumstances, you may be deemed tax resident in Spain for 2020 even if you move in October or November of this year.

bobd22

Yes there is that but without such information who knows. The point is it is more than likely from the information provided by the OP that they would not have 183 days in 2020 to make them resident for that tax year.

britishbull

If your main home is in Spain any time during 2020 then does not matter if you are here for less than 183 days... by definition if he wants to claim residency his main home is going to be in Spain, if he waits until 2021 then EU rules will not apply and he probably does not meet the other criteria for residence (given low earnings in UK). I don't think the Spanish are going to be easy going re getting possible tax off foreigners! I realise that residency is different from tax residence but to get the former in 2020 you then become liable for the latter due to lack of split tax years (Portugal does have split tax years so your tax year would start from when you become resident until end of 2020).

snikpoh

Don't confuse getting the green card (signing on the list of foreigners) and tax residency.

To get the green card, you just have to live in Spain for 90 days in a 'chunk' or plan to.

To be tax resident, you must be here 183 days or have your centre of economic/vital interests here.

As you can see, there are reasons why you can be resident here yet NOT tax resident.

Emmaandrichi

If I do not plan to work until 2021 (wanting to settle in and study Spanish) and I have 7k in the bank + healthcare, could I start the application process for residency? The tax situation is not related to the Brexit deadline. I only need the green card to be able to stay and be considered still European. I already have my NIE number. I do want to set up a Spanish bank account though.

bobd22

His main home at the time of obtaining residency ,the situation you describe would come into play if the Spanish authorities challenged his residency. They would then with UK authorities apply the tie breaker rules. Basically if one has no days in Spain before say 3 July and then obtain residency on the most basic calculator 183 days they would not be resident fiscally in Spain for 2020. They would then from 1 January on the basic number of day rules have a further 183 days allowed in Spain before becoming fiscal (tax) resident as its a new tax year, however once over the 183 days then the whole tax year would count.

bobd22

it isn't the working that makes you tax resident it is number of days physically in Spain or as has been said other factors.

Emmaandrichi

And is Spain the same as the UK in that you have to earn more then a certain amount to pay taxes?