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Moving to Ibiza

Moving to Ibiza

Old Apr 17th 2013, 3:57 am
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Default 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!
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Old Apr 17th 2013, 8:05 am
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Default Re: Moving to Ibiza

Originally Posted by flyboy35
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!
As Concierge for the Spanish section of BE I would like to say hello and welcome.

BE is a very large expat website, so if you have problems finding your way around we have concierges who will try to direct you. The moderators for the Spanish forums are Mitzyboy and Fred James, moderators are there to ensure that the site runs smoothly within the rules of BE. Problems and complaints should always be addressed to a moderador who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are friendly and helpful with a wealth of knowledge of the issues of living in Spain. At the top of the page you will find a quirkily named thread called Free Beer which is full of important and useful information. Hope you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary
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Old Apr 17th 2013, 9:30 pm
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Default 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!
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Old Apr 17th 2013, 9:44 pm
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Default Re: Moving to Ibiza

Originally Posted by amideislas
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!
There are two very big reasons to be tax resident in Spain:
1. You get access to the public health service
2. You get access to the public education service - important if you ever have children
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Old Apr 17th 2013, 9:47 pm
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Default Re: Moving to Ibiza

Originally Posted by amideislas
...

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!
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.
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Old Apr 17th 2013, 10:10 pm
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Default Re: Moving to Ibiza

Originally Posted by steviedeluxe
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.
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.
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Old Apr 17th 2013, 10:26 pm
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Default Re: Moving to Ibiza

Originally Posted by amideislas
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.
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!
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Old Apr 17th 2013, 10:38 pm
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Default Re: Moving to Ibiza

... or Icelandic banks.


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
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Old Apr 17th 2013, 11:27 pm
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Default Re: Moving to Ibiza

Originally Posted by snikpoh
... or Icelandic banks.


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
Really sorry to hear that.
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!
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Old Apr 17th 2013, 11:46 pm
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Default Re: Moving to Ibiza

Originally Posted by steviedeluxe
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!
Very true. There have been times when I've kicked myself for not transferring my savings to Euros when, less than a year after we moved sterling started to fall from around the €1.40 it was when we moved down to almost parity. But now the decision looks less foolish. And I've spent most of it so no need to worry about declaring overseas assets! There are times (not many, to be sure) when being a relative pauper can be less stressful than being loaded.
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Old May 8th 2013, 9:13 pm
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Default 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!

Last edited by Fred James; May 8th 2013 at 9:36 pm. Reason: Please don't use the site to promote your book.
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