Mitzyboy

If I have a house in Spain and a house in the UK, how do either countries judge where I live for tax purposes? What proof do they require to show where I was when, and how can they possibly keep track of me!?

Unexpat

I'm in a similar position and as far as I can tell, the answer is what you'd expect.

The UK tax regime will not let go of you easily and you need to tell them that you are no longer resident in the UK (i.e. spend less than 180 days per year living there) if you want them to let go. Even then, they may not do so for a period of between 6 to 12 months.

Regardless, there will always be some aspects of taxation that they will seek to recover irrespective of where your tax domicile is.

In Spain, the taxman will get a hold of you as soon as you pop your head up in any taxable activities, e.g. registering as the owner of property, or registering with the local ayuntamiento, opening a resident's bank account, or being granted residency, entering employment, etc.

The long and the short is that you could end up paying tax at both ends for a period of time and the onus will then be on you to recover any excess payments under the double taxation agreement of EU member states.

There is a transitional period in which one can duck and dive a bit, but sooner, or later, one needs to hop off the fence and land squarely on one side, or the other, particularly if you own property in Spain.

Mitzyboy

Mmmmmm ... well I'va had a bank account in Spain for 2 years and a villa there for 18 months but I've had nothing from the tax man at all. But in Spain I have nothing to tax as yet, apart from of course the property tax.

I knew someone on here was in a similar position but couldn't remember who. So realistically then if you were to spend 6 months in UK and six months in Spain you could be stuffed sideways from both ends then!

Maybe its better to just come clean, sounds like too much stress

maryg

Is it possible to continue to pay NI contributions in the uk to keep eligability for health ....I was going to phone the NI people tomorrow and enquire, saying that we were travelling for the next 5 years......which won't be a lie as we do intend to pop back now and then to see the Grandkids....
Mary
(ps, the reason for 5 years is that my company are keeping an option for me to return to work for 5yrs, and I may be working temporarily for them for 12 weeks of each year depending on cash flow))

Mitzyboy

I know you can make voluntary contributions. I'm self employed and pay Class 2 by d/d rather than deduction at source