Thinking of semi retirement to Spain
Jan 20th 2015 | 11:44 pm
#16
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Joined: Jun 2005
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From: Puente Esuri
Re: Thinking of semi retirement to Spain
On the face of it we have no assets in UK but we do have three lovely children two with spouses and two grandchildren all of whom we trust implicitly.
Jan 21st 2015 | 12:02 am
#17
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Posts: 990
Re: Thinking of semi retirement to Spain
Hi chipsandsausages,
We're part way through a similar plan. We've now taken early retirement and are looking for a home in Spain.
One thing to be aware of is that your children may not leave home at 18
....I know our's hasn't 
He's now 23 and although he's working he can't afford a deposit, or even the rental on anything half decent. For the time being we rent when we're in Spain and our son looks after our house, pays the bills and a small peppercorn rent while we're away.
I would also advise looking into the Spanish tax for your situation. Depending on your income & investments you might not want to be classed as tax resident. If you do, it may be worthwhile looking into a way of signing your UK house over to your children and collecting some form of rent from them while you're in Spain.
good luck
We're part way through a similar plan. We've now taken early retirement and are looking for a home in Spain.
One thing to be aware of is that your children may not leave home at 18
....I know our's hasn't He's now 23 and although he's working he can't afford a deposit, or even the rental on anything half decent. For the time being we rent when we're in Spain and our son looks after our house, pays the bills and a small peppercorn rent while we're away.I would also advise looking into the Spanish tax for your situation. Depending on your income & investments you might not want to be classed as tax resident. If you do, it may be worthwhile looking into a way of signing your UK house over to your children and collecting some form of rent from them while you're in Spain.
good luck
If you stay here more than 183 days you WILL be tax resident like it or not.
Many people are surprised that:
a) if you sell your UK house while tax resident in Spain , you will pay tax on it in Spain
b)if you rent your house out in UK, even to your children, you will pay tax on it in Spain.
If you don't rent it out you have to pay " imputed rent" ie the rent you would get if you rented it out, based on the tax office calculations.
Wonder how many abide by this?
Jan 21st 2015 | 1:43 am
#19
Joined: Jun 2006
Posts: 11,231
From: Granada Costa
Re: Thinking of semi retirement to Spain
Or if your spouse and/or family are tax resident in Spain, even if you do not meet the 183 day rule personally.
Jan 21st 2015 | 1:48 am
#20
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Joined: May 2006
Posts: 373
Re: Thinking of semi retirement to Spain
Out of interest say you lived on Spain for a year or two then moved back home to UK...how long would you have to live back in UK to no longer be classified as a Spanish resident?
Jan 21st 2015 | 5:20 am
#21
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Posts: 990
Re: Thinking of semi retirement to Spain
You'd have to deregister from the foreign citizens list, and get a tax certificate from the tax office. You'd be liable for UK tax from the moment you touched down.
If, in the year you moved back you had spent more than 183 days in Spain, the following year you would have to send a tax declaration to Spain
Obviously there could be an overlap, so you'd have to show the Spanish taxman you been paying tax in UK , and it will be deducted from the amount you owe in Spain.
You may have to also send a 720 assets declaration if during the past year your assets increased by more than 20 k, from eg a property sale in Spain, with proceeds transferred to your UK account.
If, in the year you moved back you had spent more than 183 days in Spain, the following year you would have to send a tax declaration to Spain
Obviously there could be an overlap, so you'd have to show the Spanish taxman you been paying tax in UK , and it will be deducted from the amount you owe in Spain.
You may have to also send a 720 assets declaration if during the past year your assets increased by more than 20 k, from eg a property sale in Spain, with proceeds transferred to your UK account.
Jan 21st 2015 | 6:02 am
#22
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Joined: Nov 2013
Posts: 305
Re: Thinking of semi retirement to Spain
It's not a case ofWANTING to be classed as tax resident.
If you stay here more than 183 days you WILL be tax resident like it or not.
Many people are surprised that:
a) if you sell your UK house while tax resident in Spain , you will pay tax on it in Spain
b)if you rent your house out in UK, even to your children, you will pay tax on it in Spain.
If you don't rent it out you have to pay " imputed rent" ie the rent you would get if you rented it out, based on the tax office calculations.
Wonder how many abide by this?
If you stay here more than 183 days you WILL be tax resident like it or not.
Many people are surprised that:
a) if you sell your UK house while tax resident in Spain , you will pay tax on it in Spain
b)if you rent your house out in UK, even to your children, you will pay tax on it in Spain.
If you don't rent it out you have to pay " imputed rent" ie the rent you would get if you rented it out, based on the tax office calculations.
Wonder how many abide by this?
and I'd be even more surprised if anyone checksGood advice though... Make sure that the UK house is not in your name if renting to your children whilst you are tax resident in Spain.
Just to clarify : In our situation, we rent for 3 months (90 days) at a time, alternating between the UK and Spain. We use our street legal UK registered car while in Spain and have appropriate travel insurance (annual, max stay 90 days per trip), car breakdown cover and have an EHIC card.
Jan 21st 2015 | 6:57 am
#23
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Joined: Jan 2015
Posts: 1
Re: Thinking of semi retirement to Spain
Hi me and my husband are thinking of moving to spain were not going to jump straight into it,were going to rent for at least a year,,is it hard to find work in villa martine were not looking for fortunes and are prepared to do or try anything,im a hse nurse,and my husbands a pipefitter,i hope someone can give us so info on this.
Jan 21st 2015 | 8:37 am
#24
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Posts: 6
Re: Thinking of semi retirement to Spain
Thanks for that. it sounds complicated. How do those of you who are there permanently get around this?
Jan 21st 2015 | 8:39 am
#25
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Re: Thinking of semi retirement to Spain
We don't get around it- we do it!
Jan 21st 2015 | 8:44 am
#26
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Joined: Jul 2006
Posts: 1,163
From: london/gandia
Re: Thinking of semi retirement to Spain
Hi me and my husband are thinking of moving to spain were not going to jump straight into it,were going to rent for at least a year,,is it hard to find work in villa martine were not looking for fortunes and are prepared to do or try anything,im a hse nurse,and my husbands a pipefitter,i hope someone can give us so info on this.
Jan 21st 2015 | 9:07 am
#27
Just Joined
Joined: Jan 2015
Posts: 5
From: ORIHUELA COSTA, ALICANTE
Re: Thinking of semi retirement to Spain
Apart from that go for it and good luck!
Jan 22nd 2015 | 2:05 am
#28
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Joined: Aug 2005
Posts: 1,617
From: Beckenham, London borough Bromley
Jan 22nd 2015 | 3:28 am
#29
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Joined: Jan 2015
Posts: 6
Re: Thinking of semi retirement to Spain
Wow, thanks so much for all those points raised! We certainly have a lot of digging to do. This year is mostly looking at finances so we will likely speak to a financial advisor and a solicitor about implications of renting.
Oh... and when I said "get around it" - I was unclear... I meant how do you "deal with it?" lol.
Really appreciate your advice everyone x
Oh... and when I said "get around it" - I was unclear... I meant how do you "deal with it?" lol.
Really appreciate your advice everyone x
