Tax question
Sep 9th 2013, 11:30 am
#1
Just Joined
Thread Starter
Joined: Mar 2013
Posts: 5
Tax question
If we sell our house in UK after Jan and move to Spain in same year i know we will be hit for capital gains tax in Spain after been living there for 6 months.
If we move to ,say,POrtugal and live there before the 6 months are up in Spain until we can come back to Spain ie after another 6 months(i know exact times will be different depending on when we actually move to Spain) does that work or would we need to come back to UK
I really dont understand tax and when ive looked into it it boggles me
Sorry this isnt an easily read thread
If we move to ,say,POrtugal and live there before the 6 months are up in Spain until we can come back to Spain ie after another 6 months(i know exact times will be different depending on when we actually move to Spain) does that work or would we need to come back to UK
I really dont understand tax and when ive looked into it it boggles me
Sorry this isnt an easily read thread
Sep 9th 2013, 12:30 pm
#2
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: Tax question
It's simple really. If you sell your house in January all you need to do is ensure you spend less that 183 days in Spain in that year.
How you do it is entirely up to you but you would have to avoid becoming tax resident somewhere else.
A couple of months in the UK, 4 months in Portugal and less than 6 months in Spain should do the trick. HMRC will most likely consider you to still be tax resident in the UK unless you establish tax residence somewhere else but that shouldn't present any problems.
How you do it is entirely up to you but you would have to avoid becoming tax resident somewhere else.
A couple of months in the UK, 4 months in Portugal and less than 6 months in Spain should do the trick. HMRC will most likely consider you to still be tax resident in the UK unless you establish tax residence somewhere else but that shouldn't present any problems.
Sep 10th 2013, 10:25 am
#3
Forum Regular
Joined: Sep 2012
Posts: 246
Re: Tax question
If we sell our house in UK after Jan and move to Spain in same year i know we will be hit for capital gains tax in Spain after been living there for 6 months.
If we move to ,say,POrtugal and live there before the 6 months are up in Spain until we can come back to Spain ie after another 6 months(i know exact times will be different depending on when we actually move to Spain) does that work or would we need to come back to UK
I really dont understand tax and when ive looked into it it boggles me
Sorry this isnt an easily read thread
If we move to ,say,POrtugal and live there before the 6 months are up in Spain until we can come back to Spain ie after another 6 months(i know exact times will be different depending on when we actually move to Spain) does that work or would we need to come back to UK
I really dont understand tax and when ive looked into it it boggles me
Sorry this isnt an easily read thread
A person who has his main base, or centre of activities or economic interests, directly or indirectly, in Spain is tax resident in Spain (for the whole of that year). It is assumed, unless proved to the contrary, that a person has his habitual residence (base) in Spain if he lives in Spain with his wife or minor children.
A person who sells his UK home and takes up permanent residence in Spain could be caught by the second test regardless of the length of time he is present in Spain. It obviously depends on the circumstances, but if there were a lot of tax at stake I would not take up permanent residence in Spain until the calendar year following the sale of a UK home.
In all probability it may pass unnoticed, but a lot of expats are relying on the 183 day rule and it is not entirely safe if links with the UK are severed.
