Farnsfield

I am researching the reasons, problems and issues of expats over the age of 55 who may be considering returning to the UK or have aleady done so. I would welcome any comments. You may be returning to the UK for financial, health, family or other personal reasons.  My research is supervised by a University in the UK, therefore any information I obtain is treated  as stricly confidential. It is hoped that any information I receive will help those who have returned to enable them to resettle in the UK.

Many ex pats feel they are driven out of  Spain by the tax system, eg the Inheritance tax-the regional allowances in Murcia have been abolished, meaning the spouse who has been left all the assets, will pay a huge tax bill on the inherited half of the property and the assets of the deceased. Also while alive, one's assets are often subject to tax in Spain, whereas in UK they are tax free

Then there is the assets out of Spain declaration where every private financial detail of every asset has to be submitted for amounts over 50,000 euros in each of the categories. Other reasons are:

Sorting out bureaucratic problems, problems with utilities, generally involves going down the legal path in order to get one's rights. Financially and emotionally draining, as well as time consuming

Bereavement is a big factor as the survivor needs support, may not be able to maintain the house, physically and financially.

Chronic illness-although medical and surgical treatment is usually good, if personal care is needed, or help with a partner who has advanced cancer, stroke, dementia or any disabling condition, it is so much harder to get the required services , language and cost being a factor too.

General disenchantment with corruption;it seems harder to live in Spain when you try to do everything by the book, while others who lve"under the radar" crow about less stress in Spain.If you're one of those poor people subjected to injustice and get no help, sometimes it's easier to just give up, having been worn down.

I'm sure many others will add their twopenn'orth!

Sorry Farnfield but virtually all of the ex-pats I know, of which most are 55+, are very happy and have no intention of returning to the UK in the forseeable future.  I only know of one couple who've returned in the last 12 months and that was due to medical reasons and they believed that the NHS could deal with their specific problem better than the Spanish system.

Whilst Camposol's comments are mainly valid as you get on in life you realise that we don't live in a perfect world and it's best to either accept these niggles or work round them as IMHO the positives of Spain more than compensate.

It seems odd to me that all the research and media seems directed towards the negatives of living in Spain - is it 'cos you guys are jealous?

I think many have their head in the sand regarding IHT and other issues;however nice Spain is and it IS nice, it doesn't make up for the problems. A lot of these over 55,s are not bothered about registering for tax, don't care about IHT until it happens to THEM.

Or you could get advice from a solicitor. And you could do everything legally like pay your taxes here, register your car here, go on the padron and so on. That way you won't constantly be looking over your shoulder waiting for someone to slap a big bill on you. 

Serously, the different autonomous regions can be a pain for things like IHT. They changed in Valencia last August but the initial amount not liable for tax went from about 40k to 100,000 and up to 156,000. Above that it was reduced to 75% of the balance but those over 65 and resident for more than 3 years get a 98% discount. IHT here, if you do it correctly, is virtually nil for spouses and children.

Also assets in the Valencia region still get 100% exemption whilst other areas have reintroduced the wealth tax which applies to property and cash, unlike France where jewellery, cars, fur coats (we have a lot of those in Spain) are counted.

The asset declaration is simply that, a declaration. No tax has (yet) been levied.

But, back to the original post. Hasn't this been done many times? I recall the Daily Telegraph doing something like this a few years ago (think it was something like the Boomerang expats). so you may be able to get a load of research from them.

Like acer, virtually all the expats around us have no intention of leaving. One Norwegian lady returned because of ill health and I know one couple who want to move back as they are missing family.Everyone else is more than happy to stay and limit their visits to UK to a week at a time.

To be quite honest, it is so easy to return back to UK, or for people from UK to visit, that the missing family thing is not really a point now. Interestingly, on another site, one couple went back to UK only to realise that their family's lives didn't revolve around them and are now looking to return to Spain. 

Of course, many people do miss the UK and a lot have returned but the main reason is economic. A £600 a month pension giving €900 a month gave a reasonable good living. When it went down to almost parity then just over €600 a month became a struggle. It is also interesting to read how many have returned to UK and now regret it. There have also been people who have been ripped off by banks and builders and they are the ones I feel sorry for. The majority put their trust in solicitors and banks and did everything correctly only to be let down by those who you would normally expect to help you. MEPs are a waste of space. I think fly380 (I've read his posts avidly) would be able to tell you all about that. 

But, acer, good news never gets reported. People would rather read about those who have sob stories to tell than those who actually have made a good life. None of us will be on Jeremy Kyle in the near future.

I wasn't getting at you at all, camposol. I'm sure you have done (reading some of your old posts on how you don't like those who "live under the radar" I can see how you feel). It was your reference to those who do that I was getting at.

And I was agreeing with you on the different rules in different regions which is incomprehensible to most of us. Yes, I can see why some would want to leave which brings me back to the main reason being economic, either now or possibly in the future. 

It annoys me when I hear some people banging on about how they don't pay tax, how they still drive a UK car and get a "magic" MOT and excise duty every year. Then they come out with the going back to UK to get their prescriptions, use their EHIC at the hospital and so on.

The different rules in different regions - Why? Murcia is the very next region to ours yet we get a virtual nil IHT whereas you will have to pay probably more than the house is actually worth. I can see it is a worry but still an economic reason for selling up and moving.

Sorry if my post looked like I was getting at you as I definitely wasn't, more the system and the way some people play it was what I meant.

But, acer, good news never gets reported. People would rather read about those who have sob stories to tell than those who actually have made a good life. None of us will be on Jeremy Kyle in the near future.

..that's so right Mariedav.  The media seems to delight in bombarding us with negatives and actually promotes problems.  I'm never quite sure if it's just the culture or there is an explicit instruction to ramp up issues to increase interest and circulation.  Sadly a lot of people soak it up without question and then re-gurgitate it.

I notice that Farnfield did not reply to my earlier question.  This approach seems odd to me and I wonder if he is genuine - he didn't state which University was allegedly supervising the study.  Me the cynic wonders if Farnfield is actually a hack from the Sun!