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How long can i stay in Spain, without the Spanish tax man being after me. im looking at doing a long term rent probably 11 months, i rent property off in the uk, im also going to sell a UK property at the back end of the year. any advice please ?
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Non-residents living more than 183 days in Spain are also considered residents for tax purposes, even if they have not obtained their residence permit.
If you are a Spanish resident you will be taxed for your worldwide income. You may deduct your income tax paid in your home country.
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What if i was to come back to the UK lets say after 180 days for a week, does the 183 days start again when i got back to Spain?
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Not sure, but I think its 183 days in any 12 month period.. So the answer in that case is no..
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The 183 rule is just rule. One can be tax resident in other circumstances too.
This if from The Hacienda Web Page :
INDIVIDUALS
Individuals shall be deemed to have their principal
residence in Spain if they meet any of the
following conditions:
• They spend more than 183 days per calendar
year in Spain. Occasional absences shall be
taken into account to calculate the period
of residence, except when said individuals
prove they have their tax residence in another
country. In the case of countries or territories
classified as tax havens, the Spanish tax
authorities may request proof of residence
in the tax haven for 183 days per calendar
year.
• Calculation of the period of residence shall
not take into account any temporary stays
in Spain that are the result of obligations
arising from cultural or humanitarian
collaboration agreements entered into with
the Spanish public administration with no
payment involved.
• Their main or central place of business is
directly or indirectly located in Spain.
Unless there is evidence to the contrary, an
individual shall be deemed to be a resident of
Spain if, in accordance with the aforementioned
criteria, his or her legally non-separated spouse
and dependent minor children have their principal
residence in Spain.
Individuals of Spanish nationality who prove they
have changed their country of residence to a tax
haven (Appendix III) shall continue to be liable
for Personal Income Tax (IRPF) in Spain for the
tax period in which the change of residence
occurs and the following four tax periods.
An individual shall be deemed to be a resident
or non-resident for the entire calendar year, given
that a change of residence does notgive rise to
an interruption of the tax period.
Jarvi:- If you are a Spanish resident you will be taxed for your worldwide income. You may deduct your income tax paid in your home country.
True. But only in very limited circumstances, One cannot 'choose' where to pay tax.
This message was last edited by johnzx on 20/04/2014.
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Could i keep my UK car with me for 183 days if so who should i look to for insurance cover English OR Spanish company ?
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Just to confirm the 183 days is a total in any year.
However, if you intend to stay, or are in Spain for a total of 3 months permanently, then you are required to register on the EU citizens Register. In certain circumstances the tax office may consider that makes you tax resident, although some here have a different view on that.
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There are 2 other points you need to be aware of:
1) If after becoming a tax resident you sell your home in the U.K. you will be liable to Spanish C.G.T. even though in the U.K. it is tax free (assuming it is your main residence and not let)
2) As a Spanish tax resident you are not allowed to own a foreign registered car so you need to change the number plates. Any car that is in a foreign country for more than 183 days in any twelve month period must be reregistered in that country.
Although all U.K. car insurance will cover you for unlimited European use it is only third party (unless you get a Green Card) There are a few companies in Spain that will insure your car on English plates and generally they will be cheaper than a U.K. company issuing a 'long term' Green Card. However for any car to be insured it has to be legal in the country of registration i.e. M.o.T., tax & insurance.
My best advice is to ask a competent Spanish lawyer or accountant.
_______________________
Stephen
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Re Green Cards
I have recently been informed by my insurance agent that the Green Card is no longer necessary within the EU. Nonetheless they issued one for me!
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You wiil have to prove to the Spanish goverment that you have a permanent residence in the U.K and you do not live in Spain for any more than 183 in any year for instance you are coucil tax / / gas/ elect/ rent or mortgage payer so if you do go you will have to inform the U.K tax man of your intensions their is no way out good luck
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Some good answers on here but they are not definitive for every circumstance
Best advice is speak to a good accountant / solicitor in Spain, your accountant and / or inland revenue in UK.
_______________________
“The greatest enemy of knowledge is not ignorance; it is the illusion of knowledge”
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iT LOOKS LIKE A MINE FIELD, WHATS FRANCE LIKE ? LOL
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All EU countries have similar rules
It depends upon your circumstances, business, income, family (centre of interests), permanent residence, double taxation treaties (not just for EU countries) etc etc. For example there is no reason why you cannot take a vacation for more than 183 days per year anywhere, some may say the 183 day rule is for working days (freedom of movement within EU etc), some will differ in their views, info received etc
Speak to the legal people and clearly explain your own circumstances fully and it will become very clear and very straight forward
_______________________
“The greatest enemy of knowledge is not ignorance; it is the illusion of knowledge”
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Cumbria, lived and worked in France for 30-years and took last year off to tour and live in Spain.
Both are very different and the tax systems in each are different, although the French system is far better defined.
For us France better suited our lifestyle, Spain seemed to be a problem if you wanted to earn a living and was suited to Northern Europeans who liked the Sun and cheap drink.
Having said that my Company has relocated us back to Switzerland due to the increased French taxes for the high earners.
All Countries seem to have their problems when it comes to tax, especially if you are a higher earner. As others have said take professional advice from an International tax expert.
If you asked, would I aand my wife relocate to Spain? The answer under the current tax rules would be NO. But I see the attraction for lower earners from Northern Europe seeking warmer climes. All I would say is beware the Spanish winter because if our experience is anything to go by it's certaintly not warm.
Rossetti
Rossetti
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Cumbria, I rent out property in the UK which is my income, I don't work. I own a property in Spain, I never rent it out. I do not pay council tax/electric/council tax etc in the UK, but I do still have a mortgage. When I am in the UK, I lodge with family. I never spend more than 183 days a year in Spain, and my understanding is that the 'year' is the tax year, ie, January 1st to December 31st. I mention this because I have in the past fallen foul of my travel insurers regs, when I would have exceeded 183 days in THIER year, because of the date when I took it out. In addition, I never stay more than 100 days in one stay, as again, this is the maximum on my travel insurance. Technically, as johnzx states, if you stay more than 90 days but less than 183 days, you are supposed to sign on the EU register. As I never stay more than 100 days, I ignore this. I do pay all my house suma, car suma, Spanish non resident taxes etc., UK income tax. But I'm an honest person! If you decide to spend time in Spain, you will I am sure, soon come across people who are resident and working, but don't pay any tax, Spain or UK, don't have residency etc etc. If you can afford it, there is no reason why you cannot rent a property for 11 months, and travel/live outside of Spain to break the 90/183 day rules.
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Thanks guys for all the info.
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blueyes
If you can afford it, there is no reason why you cannot rent a property for 11 months, and travel/live outside of Spain to break the 90/183 day rules.
Yes, but why rent for 11 months when you can only spend a TOTAL of 183 in Spain. Taking breaks, does not negate that rule.
Also, you say that you ‘lodge with ‘ family’ when in UK. If that is so then you it appears you are ipso facto resident in Spain, regardless of the number of days you spend here.
This message was last edited by johnzx on 22/04/2014.
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My nephew 'lodges' with his parents. Does that mean he is not a UK resident?
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Blueeyes.
It is totally irrevelant where or how you stay in any country. The rules are if your 'foot' is on the soil of any country for any 183 days in any one financial year then you are a (tax) resident of that country. Even just stopping over for a few hours whilst e.g. changing planes counts as a day in that country.
_______________________
Stephen
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