I want to move to Spain
 

Hi all,

I'm new to this forum so please bear with me.
I have recently been out to spain looking for property to buy. I would like to be living out there in the next 5 years or so.
I currently work from home for a UK based company and pay all the relevant UK tax an NI. If I move to Spain and want to become a resident of Spain what do I need to do regarding my tax. I would still work for the same UK firm but would no longer be a UK resident so do I have to pay tax in spain etc? If so what is the current rate of income tax in Spain.

Or can I continue to pay UK tax etc to keep my UK pension and NHS benefits, and just pay for private medical insurance in Spain. I really have no idea what I need to do so any advice and help would be much appreciated.

Thanks in advance.
All I do know is I want to live in Spain. :thumbsup:

Re: I want to move to Spain
 

If you are not moving here for 5 years I`d look into it closer to the day as tax laws change monthly, currently you would have to pay your tax in Spain if resident.

What ever you do get proffesional advice ,not from a forum!

Have a word with http://www.blevinsfranks.com/

Re: I want to move to Spain
 

I understand it will be better to get information nearer the time but I want to get a feel for the current tax situation so I have some idea of what's involved. Of course before I do anything I will seek professional advice but a forum is a good cheap way to start and get information from people that have already "been there, done that".

Thanks anyway for the reply Rotor.;)

Re: I want to move to Spain
 

Yes tax regimes change but some basic rules will always be the same.

If Spain is your country of residence and you spend the majority of your time in Spain you will become tax resident in Spain and pay Spanish tax on your worldwide income.

If you are physically working in the UK then you will pay tax (and possibly NI) in the UK even if you are not there long enough to be UK tax resident

If you are living and physically working in Spain (even though it is for a UK company) you may not have to pay UK tax (it depends on how the UK company sets it up) and you will have to pay social security in Spain.

If you end up paying tax on the same income in both countries you can usually offset one against the other to avoid paying twice.

Income tax in Spain is probably slightly more than the UK but in Spain there are more tax bands and the allowances differ so it is difficult to be precise and of course that could well change over the next few years.

It's a complicated subject and as Rotor says, worry about the small print nearer the time and do get some professional advice well before you leave the UK, preferably from people with experience of tax in both countries. I would endorse Rotor's recommendation of Blevins Franks.

Re: I want to move to Spain
 

I think you will find info on the UK gov site re tax, there is an agreement between the two countries to avoid you having to pay tax in both countries, if you live in Spain i think you will have to pay tax in spain unless you are working in the public sector, I understand you have to pay UK tax on Public Sector salaries and pensions.

Re: I want to move to Spain
 

Yes, but it must be declared in Spain as well and you then you get allowances for (UK) tax already paid.

Re: I want to move to Spain
 

UK government pensions do not have to be declared on your Spanish tax declaration - that is a specific part of the double taxation agreement.