New Expat looking for advice
 

Hi everyone, I've read a lot of your posts with great interest but I have become a bit confused over the formalities of our move to Spain at the end of this month and wonder if someone could help me straighten things out? :)

I will be working in Gibraltar and living in Spain. I understand that I will be paying tax in Gibraltar but am unsure of what is required in Spain. Some rental agents have told me I will need an NIE number to rent with them but as I will not be paying tax in Spain, can I get this? Also, they are requesting a Spanish bank account, can I get one if I'm not earning in Spain?

One big concern I also have at the moment and no rental agent will give me a straight answer on is when we move into an apartment are we going to be surrounded by partying holidaymakers every night? According to the agents, no but all of the apartments we are looking at are next door/in the same building as holiday apartments. We are looking to live in commuting distance of Gibraltar and are looking at Santa Margartia/Alcaidesa/Duquesa. We will be over in 1 week to secure an apartment but I feel a bit overwhelmed with the selection available - any recommendations?

Sorry it is such a long post esp for my first one but you all seem to have great advice and a lot of my queries have already been resolved by lurking.

Thanks

KMas

Re: New Expat looking for advice
 

As you will be resident in Spain I am sure the Spanish taxman will be interested in your income no matter where it is earned. ;-) ;-)
You will need to register at the local police station and they will give you a residencia certificate including an NIE number if you do not have one.
You can open a Spanish bank account with an address and a passport number as far as I am aware, I opened mine from the UK through Lloyds to Bancopopular.
It is difficult to say about the apartment unless you see it at different times of the week and see how many neighbours you have. ;-))

Re: New Expat looking for advice
 

Yes ... what he said
And about the tax, if you are a Spanish resident then the Spanish tax man will want their pound of flesh, as JDR says, as generally speaking you pay your tax in your country of residence

Re: New Expat looking for advice
 

Hello and welcome KMas,

I bet you are exited:)

In regards to flats, I can only really speak of Alcaidesa and Santa Margarita; but you won''t have the typical tourist influx with loads of drinking. Santa Margarita doesn't have any facilities at all (bars nor shops). Alcaidesa has a few restaurants and a couple of bars (a commercial centre is being built). You will see a lot of golf tourists... Quite a few cross border workers live there, and it is very nice. Quite a bit of building work going on though.

In regards to tax, you pay it in Gib, and due to the dual tax agreement, you only need to pay it once:D The tax office in Gib will help (you need to visit them anyway, and they are more than helpful if you have any questions).

In regards to NIE, I have not heard of any agents ever asking about this TBH. One tip though, do negoiate as the market is well overpriced and landlords are more than willing to drop the price (ours were negoiated from €1000 to €700).

HTH, and good luck!

Re: New Expat looking for advice
 

Hope this helps.

http://www.hmrc.gov.uk/manuals/dtmanual/DT17550+.htm

Its best to seek advice from official sources when dealing with complicated matters.

Re: New Expat looking for advice
 

Handy link but nothing there about being resident in Spain and working in Gib though.

Re: New Expat looking for advice
 

The UK taxman is not an official source in this context - Gibraltar is not part of the UK and this link refers to the agreement between the UK and Spain.

There is no double taxation agreement between Gibraltar and Spain.

As far as I am aware, the tax will have to be paid in Gib and if the person is tax resident in Spain then tax will also have to be paid in Spain and any tax paid in Gib deducted.

Re: New Expat looking for advice
 

Wait for it! :lol:

Re: New Expat looking for advice
 

KMas, I think you need to sort this out immediately.

I'm sure if you are working in Gibraltar that the employer will be aware of what you need to do in Spain. (SNIP)

Regards
DJ

David Jennings

Re: New Expat looking for advice
 

Thanks everyone for your advice, it is greatly appreciated.
Tinky, you mention haggling on rent, does this work and what is the best way to do so? We are very interested in an apartment that has been quoted at €1000 but we would prefer to spend a bit less at first :D

Re: New Expat looking for advice
 

This is the link to the Gib taxman:

http://www.gibraltar.gov.gi/gov_dept.../tax_index.htm

Here you can find some useful info about the "new" tax system introduced in 2007:

http://www.gibraltar.gov.gi/budget/B...axGrossFAQ.pdf

And this:

http://www.gibraltar.gov.gi/latest_n...07/89-2007.pdf


Although Gibraltar does not have its own dual taxation agreement with Spain (for obvious reason), there was an agreement made in 2007 making sure tax is paid only in one country on your wages. You will still need to fill in the Spanish tax form though...

Yes it does work, and you will find the same property often advertised with several agents and at different prize. So look around, just offer what you think is right for the property (you should be able to get it down by 10-15% at least if not more).

HTH,

Re: New Expat looking for advice
 

Yes, haggle!! there are so many properties on up for rent right now and so few tennants that you can almost state your price! Just tell the agent that you like the apartment very much and would be willing to pay "x" for it. Then see what happens, I think they´ll take it whatever, otherwaise4 face months with no income from it at all!

We did it with our place when we first got it, and in fact we did it again a few months ago when the exchange rate hit rock bottom (we´re paid in sterling), I was quite surprised when the landlord agreed to it, cos we went in lower than we needed to, thinking he´d try and push it up - but he didnt!!!

Its a renters market at the mo!!

Jo xxx

Re: New Expat looking for advice
 

What is this agreement, can provide a link or any more information on this please?

Re: New Expat looking for advice
 

Double taxation treaties cover very specific situations - like the UK/Spain treaty with regard to UK government pensions etc. They allow certain income to be paid tax free in one country and to be taxed in another.

Notwithstanding these specific agreements, most countries allow tax legitimately deducted in one country (such as income form working in Gib) to be offset against any tax due in the country of tax residence.

As Tinky said, a tax resident of Spain MUST declare all income from any source on his tax declaration (with some exceptions covered by tax treaties)

Re: New Expat looking for advice
 

Hope this helps.

Cross border taxation for Gibraltar employees

As anyone who works in Gibraltar is already aware, employment income is taxed at source under the PAYE (Pay As You Earn) regulations, irrespective of where they live. Allowances (if claimed) and rates are based on personal circumstances and income during a Gibraltar tax year which commences on 1st July and ends on the following 30th June.

http://www.category2.com/Gibraltar_C...order_tax.html

To find further info just google Category 2 tax residency in Spain.