jimmbo

Hi, Does anyone know what the situation is if you have a house in Spain and France, live in each for 182days.
This is an option we are considering, but deep down I think it might be too much hassle.

Fred James

I assume you are referring to the possibility of not being tax resident in either country.

As you say, it could mean a lot of hassle as it will be up to you to prove in either case that you were not in the country for more than 183 days.

A lot depends on the source of the income on which you wish to avoid the tax. If it come from the UK you will need to prove to HMRC that you are paying tax in another country before you can get it paid tax free.

If you are talking about income from an offshore tax haven (with no witholding tax) it may be possible to become a "fiscal nomad" but this is only really viable for seriously wealthy people.

If you were in this situation I feel you would be asking the question of your expensive accountant rather than on this forum.

However it's always worth a try!

jdr

Beside what Fred has told you, what about the residency rules of each country, and your vehicle legality etc. ?

EsuriJohn

There are 365/6 days in a year and where would you be "domiciled" but not ordinariley resident?

Ray51

Not only "hassle" ! If it can be proved that you have any fixed address accommodation ( owned , rented , whatever - e.g. as opposed to a hotel ) available for your sole use in France , than you could be deemed a "resident" for tax purposes anyway , even you only spend a few months there annually ; and you can be assessed on your "apparent" wealth and lifestyle ; and worse things could happen , like investigations into your :
tax-planning , past and present social contributions , your worldwide accounts ...
In any case , once your name is connected to any utility accounts , the paper-trail gets established and , sooner or later , there'll be the dreaded returns , too ; if living in a smaller place , the mayor will most certainly drop by , to witness your circumstances ...and so on .
Have you considered veritable tax heavens , like Andorra ( or Belgium ) ?

Fred James

Under these circumstances you would retain your UK domicile.

In fact it is quite difficult to shed your UK domicile even if you are tax resident in another country and have been for some time.

Your domicile does not normally affect income tax but it can have implications with regard to some investment income, capital gains and inheritance tax.

In the UK residency and domicile is a very complicated matter - in fact there are 8 different categories of residency/domicile. It certainly keeps the tax accountants well paid!

jimmbo

Thankyou all for your answers, I'm just an ordinary guy soon to to pick up my state pension, but do not like to join these expensive income tax clubs. Thought if I wasn't resident anywhere I wouldn't have to pay any tax.
Thanx

Fred James

If your income is just the UK state pension then you will probably not have to pay any tax in Spain anyway.