Porth

Good evening from a wet UK with of course and until Xmas our last Bank Holiday tomorrow. Summer is over!

However please is someone able to point me to either a matrix or calculator base whereby one's income can be calculated for Spanish tax. We are both over 65 and indeed shortly I am 70. My wife is a registered disabled person and in France as against two parts which is a sort of joint taxation model we benefit if that is the word from 2.5 parts.

Then Inheritance Tax where please (for Javea/Alicante) can I put my hands on the basis for the Spanish calculation and here lets presume we are tax residents. Whether we will or not decides in part how much more tax we will pay in Spain and the benefits that otherwise accrues. I know that one has to pay tax that is not the dilemma but it also applies in the UK but again the quantum is important. Researching this site throws up with respect lots of concerns as to taxation in Spain.

Our incomes are State Registered Pensions final pension scheme plus investment and fee income.

Porth

Sorry depends not decides - sorry once more

Neptuno

I'm sure someone on EOS will know , but on the subject of inheritance tax, I wasn't aware till the other day that the regional IHT allowances don't kick in till you have lived in the region for 5 years ( tax resident of course)

Porth

Hi Neptuno it is wet and windy here in Wales and we live on a high point overlooking the Wye and Severn rivers. Was looking forward to coming to Spain next week. So if I am knocked over by a bus or taxi and go to meet my maker no regional IHT allowances?

Neptuno

Apparently so!
If you lived inMurcia they've abolished their regional allowances, so nothing there anyway.

Porth

so it is a very serious consideration in ones financial planning and at 70 years of age a major deterrent to coming to live in Spain? Then if one gifts in the UK you have to be around for some time after the gift otherwise caught up in inheritance!

OK 183 days a year but even acting like a nomadic one must have one's centre of economic interest somewhere and on first pass I am beginning to think that for financial planning should be the UK. We have set up years ago a discretionary trust in the UK for the grandchildrens education and University life so would not want that disturbed.

Neptuno

Very wise!

Porth

As an aside I went to a seminar by Blevin Franks last year in the Parador at Javea. I pushed the nice young man hard on the subject and he admitted (then but not now) that the tax regime in France was 'more kind' At the time was resident in France but on a look-see in Spain.

I simply do not wish to be or to be seen as negative for Spain has lots and lots of plus points. Its people the climate the food traditions et al. It is a lovely country and I enjoy visiting it.

However it is a balance and risks are relative to rewards.

The UK does of course have negative points but its economy growth is outstripping both France and Spain.

Someone argued to me once that one can always buy a holiday in the sun.

Very seriously the down side of living in Spain taxation wise has very much to be taken into consideration augmented by the health system.

Interesting times