Murphy1804

Hello all, i would be forever grateful if i can get some help please. We are a family of 5 moving to the south of Spain in the next few months we have already looked at schools for the children, so hopefully they will settle there. The questions i have are i will only be in Spain around 150 days +- a year as i work in the middle east, my wife is a nurse in the UK and will be keeping up her registration by doing shift work back every 6 months or so. Im paid in GBP into a middle eastern bank and according to what i can find as long as I'm outside of Spain 180 days i can live there tax free is this correct? I will pay what i need, its just i can't find the information and was wondering if anyone is in the same situation? i will be transferring my wife money each month would that be classed as taxable income for her? Any advice would be greatly received

Rosemary

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

Fred James

Be careful. If your family is living in Spain permanently then the taxman can deem you as being tax resident under the rules as your centre of interest is in Spain.

If you can prove that you are actually tax resident and paying tax somewhere else, then it may be acceptable. It is unlikely that you will be challenged, but there is always that possibility, so you need to be aware of that.

Murphy1804

Thanks Fred, I don't pay any tax in the middle east and i am classed as a resident in the UAE its my wife I'm concerned about, i was thinking if the money i transfer her for bills and upkeep i should just declare that to the tax man?

scot47

Remittances should not be taxable.

Murphy1804

Thanks Scot, its a hard one to try and get my head around and is one of the factors of me leaving the UK as they want me to declare and pay tax on everything i earn in UAE but they don't take into consideration my living costs in the UAE, as the uk has a 90 day taxation law I'm stuck, i don't get wage slips and my employer will only pay into a middle eastern account, the landlord of the house we are moving too has said i can pay everything direct to her each month and they will sort out the utilities for me, its more the fact i want her to have easy access to funds while I'm away, maybe cash is the answer? please don't try and think I'm running away from paying taxes that isn't the case

BigD Nerja

Murphy I suggest you look at a currency card for your wife, Canton FX do one as do others. You can load it each month or with a lump sum and your wife can use it and withdraw money. These are separate from Spanish banks and are not within Spanish jurisdiction.
Regarding your wife's tax status, without wishing to resurrect another thread I suggest you take a look at the 'to do or not to do' thread further down the page. Lots of info and opinion on residency and tax!

Murphy1804

Thanks BigD ill take a look

teejaydee

This is what the OP needs to be concerned about. The Spanish tax authorities are very likely to declare his centre of interest as being Spain, and to therefore deem him to be a tax resident. This is regardless of the number of days he spends there, how he remits money to Spain, or any other factor.

Exactly. Unfortunately for the OP he is not paying tax in the UAE, and so this is likely to give the Spanish tax authorities even more reason to ensure he pays tax in Spain.

Incidentally, for anyone in a similar position to the OP (working in a tax haven and looking to spend their off-time in a European country), Spain is a bad choice, given the "deemed tax resident" rule. Countries without this rule are far better choices.

Murphy1804

Thank you teejaydee, if I can ask another question. I don't mind paying tax at all be it in Spain or the Uk, the problem I have is I have living costs in UAE which the UK, im not sure about Spain don't seem to consider. I've only just started this job and I have had to have set up 2 bank accounts here, one where my salary goes in and one where I transfer part of my salary to the UK to cover bills, (And pay tax on this amount) as my costs would be a lot cheaper in Spain could I do the same thing? or would I have to declare everything? And are there tax specialists who could help me out? I don't own a property in the UK and would only be renting in Spain.

cricketman

I am 99% sure you would have to declare your entire income in Spain, as that is where your centre of economic interests lie i.e. your children are resident and go to school there

I am pretty sure you could not get any relief on your living costs in the UAE

Murphy1804

Thanks Cricketman, if that's the case where they would want me to pay tax on my full income and they wouldn't consider that I have living expenses in the UAE how would they prove it? I mean if I say figuratively transferred my wife 1000 euros each month and paid tax on that, what would make them think that i'm earning more?

Murphy1804

Also as some have previously said in other posts but if my centre of economic interests, she will still be working in the UK and paying tax and ill be outside of Spain more than 190+ days so does that then mean because of the children who will be there would i still declare all income?

cricketman

You can commit fraud whichever way you like, but you run the danger of being caught!

BigD Nerja

However the danger of being caught in Spain is very slim indeed!