t2uds

jago25_98

With the tax changes should I commit to Spain, stay transient or move away from Europe?


I have been paying tax in Norway and the UK. I want to be a little bit more permenent in Spain but not very permenent if it means high, global taxation wherever I go and an exit tax.

I spend a few months a year in Las Palmas. As much as I like the extended holidays the tax regime scares me too much to commit in any way. I stay in a hostel and store a surfboard with a friend. I have few belongings in life.

I spend a lot on hirecars and the temporary accomodation. I usually stay for about a month at a time.

If I get a NIE and not residency, what is that? What am I agreeing to with a NIE? I found that looking behind the scenes for various ID cards like driving licenses, what is being agreed to is far more than identification. I worry that in addition to having the ID I am quietly opening myself to global taxation wherever I go and an exit tax to escape it.

I don't think there is dominicle in Spain. So what is it? What is the tax status? I heard citizens get taxed even after emigrating. Do I intend to earn money in Spain? Well, no, not really. I might consider it, but before that I would have to have confidence that the tax authority are efficient, fair and competitive. So I probably wouldn't choose to earn money in Spain at this stage - because I don't like the way things are going. Does this make sense?

If I get a NIE do I then have to prove that I am not earning money in Spain?

I need to understand the tax system. As much as I love Las Palmas, there are other options available to me in the world and this is part of wieghing it up. I could maintain tax residency in the UK - better the devil you know?

What do I want an NIE for? To buy a moto or a car. I might want to buy a house at one stage. If I buy a house then I understand to pay tax on that. But what I don't want to do is get NIE and residencia to get ticket discounts and be able to buy a motorbike and then find out I have to do a tax return on global assets and income from Norway, the UK and the rest of the world for the rest of my life.

cliff b

Good post Jago

You have echoed my thoughts!! But if thats the life that you/we want we have to accept the tax laws of the country even when they are not to our liking. Well,,,, kind of!!

I am continually trying to find ways of not "bothering" the tax man, UK or in the future Spanish, they are very busy so I dont want to burden them with more work Hope they are not reading these

When I move over do I leave most of the money in a UK bank? Not tell the Spanish I have UK savings? As non tax payers we would not need to pay tax on the interest in the UK.

Until I reach retirement age I will only have work pension which is not a lot, not enough to be taxed on I think? About £5K year.

scrubbedexpat095

If they are over 50K then you won't have any choice but to tell them if you want to stay legal.
It's called Modelo 720 if you want to look up details about it.

Fred James

Even though you are not paying tax on it in the UK it would be liable for tax in Spain if you were deemed to be tax resident in Spain.

Whether any tax would actually be due would depend on the amounts involved and any other income from anywhere in the world.

bobd22

The 2 posts above really sum up the fear that the current regime in Spain is causing those that are thinking of making the move. The system is geared towards obviously catching out the rich who seek to not pay tax or pay as little as possible. It is clearly deterring many from making the move I myself due to the recent changes at the moment do not plan on making myself resident although that had been my plan. Before anyone infers that I am shirking my obligation yes I have a property in Spain and pay my full dues as a Non resident all taxes up to date. I will remain that way until I can see daylight on what the situation is. I appreciate that we have to pay taxes somewhere and have no issue doing so. However my original plan was to legally make my pension go a little bit further not less which is the case in Spain currently or as how I see it. It is not only the taxes but the paying out for them to be completed by solicitors or at best gestors due to complicated bureaucratic methods. I so far manage my own re non resident liabilities mainly. It is not just Spain though as now we also have the loss of NI Contribution based Health Care for first couple of years removed by the UK Government. I appreciate many of those resident prior to this will say well that is the way it is. If you are not resident though then financially one has to consider carefully before making that commitment. From Jagos post I am unsure if they intend living full time in Spain? if not the obtaining the NIE is not really an issue or not that I have found, it just allows you to pay your way as a non resident etc. One thing though is do not if non resident sign on the padron as this then means you are resident as only residents should be on it. If you are just back and forth pay your non resident dues and don't kick the backside out of it I doubt there is anyone timing the days you spend in Spain, unless of course you never leave.