Blass

Hi everyone my name is Ben

I have a few questions about living in Span but I am finding the more answers I get the more questions I have

my dream place to live would be Fuerteventura and have visited Caleta De Fuste 15 times since 2011. We love the place. In 2015 we spent a lot of time researching Spain and went to quite a few roadshows on living abroad.

My question [first of many] is everyone I speak to says rent before you buy which is very sensible as living in Spain is totally different to holidays. But the problem we have is we would be selling our house in the UK so would have quite a lot of money which would be taxable after 6 months ??? How do people deal with this? I have heard a few people living in Spain say they rent the property out. Also has anyone had any dealings with blevinsfranks.com as they seem to be very good.



Many thanks for the help

scot47

"quite a lot of money which would be taxable "
Capital is not taxed.

Rosemary

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

tebo53

Many posters on here will advise you to keep your house in the UK and rent it out to generate income and you will always have somewhere to go back to if things don't work out for you in Spain. When my OH and I moved out here 16 months ago we sold our property and all belongings in the UK. We wanted it to be a complete break and we knew we wanted to make our new life in Spain. If we did decide to go back to the UK for any reason we could rent there too. We sold our house in the UK as we would not want to return to that area anyway.

We will be making our first tax declaration (through the Modelo 720) in the next few months and don't expect to be paying anything extra for" house sale money"

Best of luck with your move.

Steve

MikeJ

The main reason the advice is to rent before buying is so that you haven't made a major irreversible decision before you have given it a trial. Selling a property in Spain is an awful lot more difficult that buying - and some would say nigh on impossible in the current economic environment. So you could end up in a neighbourhood you don't enjoy and island life is not for everyone. It also gives you the opportunity to try a number of other "Spains" before committing - Spain has many many different faces that you will never see on a touristic or even an exploratory trip. You may find other places more enjoyable and suitable for long term settlement.The wise heads recommend renting out your UK property for a year or two and renting places in Spain with the proceeds until you are sure you have found your Eldorado. After all you will have to stay there for an awful long time.

Horlics

If you sell your house before moving to Spain you keep the cash. If you live in Spain and rent your UK house you will be charged capital gains when you do eventually sell it because it will then be considered your 2nd home.

You could return to the UK for a year to re-qualify as resident there and then sell, but if your life is then in Spain you might not want to do that.

snikpoh

No you won't!!!!!!

Modelo 720 is just for asset declaration - no tax involvement at all.

tebo53

Perhaps I've got it wrong somewhere, don't they work out how much tax is to be paid by what is declared on the 720?

big wheels

We have used Blevins Franks to look after our money for the last ten years & found them very professional in every way.

MikeJ

But only if you buy in Spain before you sell in UK - until then you only own 1 property and CGT is payable on disposal of a second property (ask an MP if you want to know the rules)

snikpoh

No. (Income) tax is only payable on income.

There is also wealth tax but this only kicks in if you have assets of more than 700k euros each. There are allowances for your main residence (ISTR).

Modelo 720 is just an asset declaration. The sceptics will tell you that they then use this info. for inheritance purposes etc. - who knows what it's for.

tebo53

Thanks for the info snikpoh. I should have realised that. Must be having an OAP moment

nickhollis

hi i have just joined the site can anybody tell me how to post a question so i can get some answers regarding buying a house in spain thank
you

snikpoh

Look for 'New Thread' and fill in the blanks

nickhollis

thank you