I have read a lot of different posts.
I'm planning on living in Spain for at least 6 months and have my EHIC card.
I don;t become fiscally resident in Spain until after 185 days.
However, some people are saying that if you move there with the intention of living there then EHIC won't cover you.
So, am I in the gray area of living their temporarily or not?

Residency in Spain is not relevant.

You are not allowed to use a EHIC when you have moved "permanently" away from the UK. That would normally be considered to be an absence of more than six months in any one UK tax year.

If you have been working in the UK then you may be entitled to two and a half years full health cover if you apply for a S1 form (was E106).

Can you tell me more about the form S1 please Fred? I live in Spain but stilll pay a rather large amount of UK tax & NI each month

If you live in Spain, then why pay tax & NI in UK? It's less here in Spain (for most people anyway).

You MUST declare (via tax return) all worldwide earnings here in Spain.

Anyway, the s1 (or E106 as it was) is a reciprocal agreement whereby NI contributions paid in UK within the last 5 years (I think) are used to 'buy' healthcare here in Spain for up to 24 months.

When applying for the S1, you are asked when you moved to Spain. This then determines when these (up to) 24 months start from. If you've already been here for a while, then I guess the clock is already ticking.

There is some more info on healthcare when moving abroad here

http://www.nhs.uk/NHSEngland/Healthc...roduction.aspx

Because I commute from Spain to the UK for work (though obviously not daily)

So?

I'm not sure I follow the logic.

Legally, if you live in Spain then you pay tax in Spain (not UK). As I said before, it might be better for you anyway.

It's not that simple.

Any income earned from work in the UK is taxed in the UK irrespective of the residency status of the earner. NI is also due.

If you are tax resident in Spain then, yes all your income is taxed in Spain and you can offset any tax paid in the UK.

What you cannot do is get the UK income paid gross. The exceptions to this are things like pensions which, strictly speaking, are earned in the UK.

It's all very complicated but the long & short of it is I live in Spain but work in the UK.

The good news is I rang a few numbers this morning & have downloaded a form (CA8454) from the inland revenue. Processing time is about 10 weeks but then I'll receive a certificate entitling myself + dependents to free healthcare in Spain. The form S1 only applies to retired people.

That's not entirely true.

It replaces the old forms E121 and E106.

E121 is only available if you are in receipt of a UK state pension. The E106 is for temporary cover until you get work in Spain or until the (maximum) of two and a half years is up.

Are you saying then Fred, that someone in that position would need to pay both NI in UK and SS in Spain in order to get healthcare whilst living in Spain?

Wouldn't he also be TAX resident in Spain based on the facts he's provided?

No, if you are working in the UK and not tax resident you will pay UK tax and NI. Under the various agreements you will be covered for healthcare in Spain. Licinius has already mentioned form CA8454.

Yes he will be tax resident in Spain if he spends more than 183 days in one calendar year in Spain but that doesn't mean he does not have to pay tax in the UK on money earned in the UK (there are some exceptions if the employer is not based in the UK). Any tax paid will be deducted from the Spanish tax due on his worldwide income.

It is a very complicated subject and if you want an idea of just how complicated UK tax is have a read of this:-

http://www.hmrc.gov.uk/cnr/hmrc6.pdf

The last sentence of section 10.1 says it all.

"You will always be liable to UK tax on income earned in the UK."

Indeed it is a very very complicated subject Fred. The inland revenue reserve the right to change any rule if they think you stand to gain from it.

I do indeed spend more than 183 days per year in Spain so under dual taxation rules should pay Spanish tax instead of UK tax. However, there are a few other little rules thrown in there to make sure Spain doesn't get the revenue.

when i worked for a uk company from spain, i paid tax it in the uk and it was deducted from tax due in spain.