Moving to Ibiza
#1
Just Joined
Thread Starter
Joined: Apr 2013
Posts: 1
Moving to Ibiza
Hi Everyone,
This is my first post, looking for some help....
I work for an airline in the uk and seriously considering moving to ibiza. I will still be based in the uk and paid through PAYE with my company. What are the tax implications? Do i just pay the amount of tax for the time that i spend in the uk as a tax return or do the company take it out of my wage?
Both my partner and I own properties in the UK, what are the tax drawbacks of this?
Can anyone recommend anywhere to live in ibiza itself? I will be moving with my partner we are both 28 with no kids.
Many Thanks!
This is my first post, looking for some help....
I work for an airline in the uk and seriously considering moving to ibiza. I will still be based in the uk and paid through PAYE with my company. What are the tax implications? Do i just pay the amount of tax for the time that i spend in the uk as a tax return or do the company take it out of my wage?
Both my partner and I own properties in the UK, what are the tax drawbacks of this?
Can anyone recommend anywhere to live in ibiza itself? I will be moving with my partner we are both 28 with no kids.
Many Thanks!
#2
Re: Moving to Ibiza
Hi Everyone,
This is my first post, looking for some help....
I work for an airline in the uk and seriously considering moving to ibiza. I will still be based in the uk and paid through PAYE with my company. What are the tax implications? Do i just pay the amount of tax for the time that i spend in the uk as a tax return or do the company take it out of my wage?
Both my partner and I own properties in the UK, what are the tax drawbacks of this?
Can anyone recommend anywhere to live in ibiza itself? I will be moving with my partner we are both 28 with no kids.
Many Thanks!
This is my first post, looking for some help....
I work for an airline in the uk and seriously considering moving to ibiza. I will still be based in the uk and paid through PAYE with my company. What are the tax implications? Do i just pay the amount of tax for the time that i spend in the uk as a tax return or do the company take it out of my wage?
Both my partner and I own properties in the UK, what are the tax drawbacks of this?
Can anyone recommend anywhere to live in ibiza itself? I will be moving with my partner we are both 28 with no kids.
Many Thanks!
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#3
Banned
Joined: Feb 2011
Location: Mallorca
Posts: 19,367
Re: Moving to Ibiza
Presuming you can prove you are not "resident" in Spain for more than 183 days per year, then you will not be considered a tax resident, which would require that you to move your entire fiscal life into the Spanish tax system.
Aside from the usual complications in changing to the Spanish system, the UK system may be more advantageous to you, and certainly offers far more benefits than the Spanish system, should you ever find yourself without income.
Possibly the only way that the Spanish system could be an advantage to you is if you defraud it in some way, which, despite the large numbers of people who do so, is strongly not recommended. You should ask a professional tax adviser who can compare the two situations and lead you to a rational, informed conclusion.
Also, whatever you do, keep the vast majority of your assets in Sterling. "Spanish" Euros have a rather uncertain future. (before you say all Euros are valued the same, ask a Greek or a Cypriot banker if that's true).
Good luck!
Aside from the usual complications in changing to the Spanish system, the UK system may be more advantageous to you, and certainly offers far more benefits than the Spanish system, should you ever find yourself without income.
Possibly the only way that the Spanish system could be an advantage to you is if you defraud it in some way, which, despite the large numbers of people who do so, is strongly not recommended. You should ask a professional tax adviser who can compare the two situations and lead you to a rational, informed conclusion.
Also, whatever you do, keep the vast majority of your assets in Sterling. "Spanish" Euros have a rather uncertain future. (before you say all Euros are valued the same, ask a Greek or a Cypriot banker if that's true).
Good luck!
#4
Lost in BE Cyberspace
Joined: Apr 2009
Posts: 7,749
Re: Moving to Ibiza
Presuming you can prove you are not "resident" in Spain for more than 183 days per year, then you will not be considered a tax resident, which would require that you to move your entire fiscal life into the Spanish tax system.
Aside from the usual complications in changing to the Spanish system, the UK system may be more advantageous to you, and certainly offers far more benefits than the Spanish system, should you ever find yourself without income.
Possibly the only way that the Spanish system could be an advantage to you is if you defraud it in some way, which, despite the large numbers of people who do so, is strongly not recommended. You should ask a professional tax adviser who can compare the two situations and lead you to a rational, informed conclusion.
Also, whatever you do, keep the vast majority of your assets in Sterling. "Spanish" Euros have a rather uncertain future. (before you say all Euros are valued the same, ask a Greek or a Cypriot banker if that's true).
Good luck!
Aside from the usual complications in changing to the Spanish system, the UK system may be more advantageous to you, and certainly offers far more benefits than the Spanish system, should you ever find yourself without income.
Possibly the only way that the Spanish system could be an advantage to you is if you defraud it in some way, which, despite the large numbers of people who do so, is strongly not recommended. You should ask a professional tax adviser who can compare the two situations and lead you to a rational, informed conclusion.
Also, whatever you do, keep the vast majority of your assets in Sterling. "Spanish" Euros have a rather uncertain future. (before you say all Euros are valued the same, ask a Greek or a Cypriot banker if that's true).
Good luck!
1. You get access to the public health service
2. You get access to the public education service - important if you ever have children
#5
Re: Moving to Ibiza
If your expenses are going to be in Euros, keep at least some of your wodge in Euros.
Many suffered when the pound (which bought 1.70 or 1.65 euros a few years back), slumped to 1.05.
It's recovered somewhat since then (to 1.17) and we all hope that it doesn't plunge again. Trouble is, no-one really knows, even the new governor of the BoE. But the sensible advice must always be to hedge a percentage of your money.
#6
Banned
Joined: Feb 2011
Location: Mallorca
Posts: 19,367
Re: Moving to Ibiza
Disagree.
If your expenses are going to be in Euros, keep at least some of your wodge in Euros.
Many suffered when the pound (which bought 1.70 or 1.65 euros a few years back), slumped to 1.05.
It's recovered somewhat since then (to 1.17) and we all hope that it doesn't plunge again. Trouble is, no-one really knows, even the new governor of the BoE. But the sensible advice must always be to hedge a percentage of your money.
If your expenses are going to be in Euros, keep at least some of your wodge in Euros.
Many suffered when the pound (which bought 1.70 or 1.65 euros a few years back), slumped to 1.05.
It's recovered somewhat since then (to 1.17) and we all hope that it doesn't plunge again. Trouble is, no-one really knows, even the new governor of the BoE. But the sensible advice must always be to hedge a percentage of your money.
But as demonstrated recently, there's certainly greater risk of Euro assets being seized than sterling assets.
#7
Re: Moving to Ibiza
The opposite could be argued as well. There is no shortage of economists who believe the Euro is grossly overvalued and has nowhere to go but down (as it will eventually be necessary to print a lot more of it). And many argue that the eurozone's fundamentals certainly don't support its valuation. That certainly seems obvious to me.
But as demonstrated recently, there's certainly greater risk of Euro assets being seized than sterling assets.
But as demonstrated recently, there's certainly greater risk of Euro assets being seized than sterling assets.
As for risk - we have seen the pound lose value from 1.70 down to 1.05. Ok it may go the other way, but no-one can be sure.
Sterling assets are just as vulnerable as euro assets. Ask anyone who had savings in Equitable Life or a pension from Maxwell. Hedge, to be safe!
#8
Re: Moving to Ibiza
... or Icelandic banks.
Please don't follow any advice I give as it seems doomed.
Please don't follow any advice I give as it seems doomed.
- My pension was with Equitable Life
- ALL my savings were in Iceland
- I came here to renovate property and live off the rental income
#9
Re: Moving to Ibiza
But it is often useful to hear from those who've experienced the knocks.. so keep contributing, please...
And if I'm ever in your area I'll have to invite you to a
Chin up!
#10
BE Forum Addict
Joined: Aug 2006
Location: Velez-Malaga
Posts: 4,916
Re: Moving to Ibiza
As I said, if the OP is going to be spending money in Euros, then he should keep a chunk in Euros. Not all of his money - he can keep a majority at home.
As for risk - we have seen the pound lose value from 1.70 down to 1.05. Ok it may go the other way, but no-one can be sure.
Sterling assets are just as vulnerable as euro assets. Ask anyone who had savings in Equitable Life or a pension from Maxwell. Hedge, to be safe!
As for risk - we have seen the pound lose value from 1.70 down to 1.05. Ok it may go the other way, but no-one can be sure.
Sterling assets are just as vulnerable as euro assets. Ask anyone who had savings in Equitable Life or a pension from Maxwell. Hedge, to be safe!
#11
Just Joined
Joined: May 2013
Location: Ibiza
Posts: 1
Re: Moving to Ibiza
Hello,
Just seen your post about moving to Ibiza. I live in Ibiza and have done for 3 years. You won't regret the move. Its a lovely place to live!
Just seen your post about moving to Ibiza. I live in Ibiza and have done for 3 years. You won't regret the move. Its a lovely place to live!
Last edited by Fred James; May 9th 2013 at 9:36 am. Reason: Please don't use the site to promote your book.