Residency

i am a bit confused about how we go about applying for residency. We took up a rental on 1st December and my husband has been living in the property since then. I have to travel back to the UK until our property sells. I will then come back and take up permanent residency. My husband has a pension and does not need to work, however my plan is to Teach English as a Foreign Language and I have qualifications to do this. I believe we need to have €6000 each in our bank account which is not a problem, however I will transfer the funds straight back to the UK once we have done our residency. If anyone can advise where we apply for this I would be very grateful also is there any other things we need to apply for. We have got our NIE numbers- got those 3rd December.

A big word of warning......... If AS A RESIDENT OF SPAIN when you sell a property anywhere in the world then you are liable to Spanish C.G.T. on the sale. You should have been advised by your adviser before you took out residency. Maybe if you delay your application for residency and your UK property is in joint names or even better in your sole name then you will not be liable to this tax. It is a complicated situation and you need propper fiscal advice here in Spain.

I'm with steone on this one. Don't apply for residency (going on the EU register of foreigners) until you have sold your UK property. There's no actual rush especially if you are returning to UK on a regular basis.

There is no sum laid down to prove you are financially stable although the €6,000 has been mentioned as a guideline. And there is no need to transfer it back and forth as it doesn't have to be in a Spanish bank account. Proving you are financially stable means that you have access to funds and/or income but not necessarily in Spain. Even a credit card with more than the €6000 available as a limit is acceptable. If your husband is retired due to age then you can apply to UK for an S1 form to transfer your medical to Spain which ticks the box for medical insurance. If you're under retirement age then you are classed as his beneficiary so you are covered as well.

Once you have sold your UK property, if that's what you want to do, then apply for residency. It can be done at any National Police Station in your area or a town hall with a foreigners department.

Once you have sold your UK property, if that's what you want to do, then apply for residency. It can be done at any National Police Station in your area or a town hall with a foreigners department.

To be on the safe side I would wait until the following year - if the UK property was sold in the first part of 2015 and then they went on to spend more than 183 days in Spain they would still be liable for the CGT tax in the 2015 tax year - Best to register in Jan 2016

The difficulty with this situation is as a retired pensioner you need residency before you can enter the medical system for healthcare. You need to produce the residency certificate even though you may have the S1 forms from DWP. That may depend on which regional healthcare you seek to access but that is the case in most regions.

Just to clarify, if you are tax resident in Spain during the year that you sell the property ( I.e for more than 183 days in the calendar year) then you will be liable for CGT as others have said, UNLESS you are intending to purchase a new residence in Spain, in which you case you can claim relief on the amount you reinvest. In other words if you reinvest 75% of the proceeds in a new home then you can claim relief on that, and only pay CGT on the remaining balance. You claim relief on your annual tax return.

If you haven't sold it by 31st December 2015 and you are tax resident then you will need to submit a Modelo 720 and declare it as as an overseas asset if it fist more than €50,000 when you bought it.

Probably better to take out a years private health insurance than pay 27% CGT (for gains over 18,000€)

Not quite sure I  understand the post about health insurance, but just to clarify CGT rates change on 1st 

January 2015. 

Upto €6,000 - 20%, €6,001 - €50,000 - 22%, > €50,001 - 47%

Not quite sure I  understand the post about health insurance, but just to clarify CGT rates change on 1st 

January 2015. 

Upto €6,000 - 20%, €6,001 - €50,000 - 22%, > €50,001 - 47%

Not quite sure I  understand the post about health insurance

Sorry, this was a reply to Mickyfinn's post.

Upto €6,000 - 20%, €6,001 - €50,000 - 22%, > €50,001 - 47%

Wow that's a big rise, so a no brainer really, If their house in the UK was their primary residence they will pay no GGT there - Hold off registering in Spain until the following January

Registering is nothing to do with it, it's the amount of time you spend here. I thought I read earlier the OP's husband is already here, and if he remains during the year, then he will be tax resident. 

I am more than a little confused. We have a property in UK which we are selling however husband has been here since 1st December when we took over tenancy of apartment. I have been back and forth to UK whilst sale is going g through. Do we have to register our residency immediately or can we wait as someone stated earlier?  If so are we still ok living here. We do have our NIE numbers.

thanks

Sorry, just realsied there was an error on this post the other day. I read the line from income tax not capital gains. Shouldn't use my phone when posting. These are the correct rates from 2015
 

Just to clarify CGT rates change on 1st January 2015. 

Upto €6,000 - 20%, €6,001 - €50,000 - 22%, > €50,001 - 24%

.

Your liability to CGT is likely to be substantial on a UK property if you become a fiscal resident in Spain. In the UK CGT is not applied on your owner occupied dwelling. That’s not the case in Spain and once you become fiscally resident the laws of Spain apply and you will have to declare it.  

In Spain tax liability is calculated a year in arrears.

If I were you I would either not sell the UK property or not become a tax resident until at least two tax years have passed from the sale date. Tax years in Spain are January to December. Not April to April.

As other have posted you are assessed as being fiscal resident if you spend more than 180 days in Spain in one fiscal year or your center of economic activity is in Spain. What that means in practice as a pensioner is simply living here.

Remember it is your responsibility to prove to the Hacienda you are not liable for fiscal residency if a problem arises.I know many people live in Spain under the radar so to speak and over stay without usually a problem. However if you require medical care under the SI DWP pensioner system your options are limited because you have to prove residency first before being accepted into the system.