Hi Everyone - Looking To Retire

Are you joking or what? Grow up you say, when you have two idiots on here who give out sarcastic comments in nearly every post they comment on, not to mention the fact that one of them had at least 4 different names so he could show yourselves with other posts that he was really a good ole boy, that wasn't stopped was it? 

Sorry but even when many members have given out rock sold honest info these two have disputed it to the point of 'Inciting" yet they get away with it.

I could say so much more but wont for fear of being labeled "Mardy bum posts" best left to them who get on so well with each other.

Thanks John that makes much more sense, 

There seems to be a lot of hostilty on here, this is my first thread and already moderators have intervened.

As the late Eric Morecombe would have said, 'There's not a lot that you can say about that'.  

sunnymitch

you might find this link useful

http://europa.eu/youreurope/citizens/residence/faq/index_en.htm

baz1946 - your post is spot on

We're doing the same as Sonny and wish to drive our car over to rent first to see if living there is right for us. We were doing 3 months but realistically think we will need 6 months. We are retired now. We have all legal insurances and card in place. But would like to know if we can bring the car for the 183 days? We shall be popping home at least once by plane during that time. We are coming over mid till end September. So technically it will not be 6 months in 1 year. We will be in UK for Xmas.

Sorry to jump into your post Sunnymitch but could anyone just clarify two points for me if possible.  Firstly, we don't intend spending  182 days per year in Spain and we will be keeping our UK home so I'm right in thinking we are just visitors to Spain even though we hopefully will own a Spanish apartment and have to pay tax on any rental income (won't apply as we don't intend on renting it out) and the equivalent of council tax.  Have I got that bit right?

second thing is that Mr has a private pension.  Once we retire will th Spanish authorities be interested in that too?  

Thank you!

Polly

tammydog

I understand that the rules have recently changed about bringing UK (or any foreign) cars into Spain.

After 3 months you are meant to transfer to Spanish plates - previoulsy it was 6 months in any given 12 month period (Many people ignore this or maybe they have found an alternative)

However, it does not make a lot of sense especially for long term tourism / travel / holiday etc.

Obviously it would also not make sense (or be reasonable) for you to transfer your car then have to transfer it back if you decide not to stay in Spain.

Contact DVLA by phone and check the latest rules and see what you can or can't do. A further call to your insurance provider may also help.

You may well get some views from others on here but be careful as the only way to be really sure is contact the right people to check your own plans etc.

Just remember many things are not as black and white as some people on here profess - there is always an alternative so don't let the non experts worry you

Good luck and hope it all works for you

Sorry Tadd but I think you're getting it mixed up. You have 3 months in which to register a car IF you are becoming a permanent resident in Spain. You can keep a UK car in Spain for up to 6 months if you are just visiting.

Most UK insurance companies will only give you 3 months insurance in Europe and will reduce your cover down to the minimum required, ie 3rd party only. If you wish to increase the cover, the insurance company will charge you extra.

Some companies will cover you for 6 months so check with them first. And, remember, you will require breakdown cover which comes as standard with Spanish policies.

Polly1960, your husbands private pension is of no concern to Spain as you state you will be visitors with your main tax domicile as UK.

mariedav

thanks - I was not sure about this new 3 month rule (heard and read conflicting views) but what you say makes sense and why I said to tammydog to check with DVLA and insurance company.

The AA & RAC also give good advice.

Another minefield of the freedom of movement why can't the EU unite better as one and have a lot more common single procedures it would make life a lot easier just like when you cross from England to Scotland, or Dorset to Hampshire, or Aldershot to Farnborough or Los Montesinos to Torrevieja etc etc - but that is for another thread (one or two on here may report me for drifting - best be careful)

This question is essential for the enjoyment of some benefits and very especially for the ascertainment of your taxes liabilities.

Actually many laws in Spain apply the “fiscal residency concept” to classify the residential status of persons for other purposes

For any European citizen, the acquisition of the Spanish residency is very simple: you just need to register yourself at the National Police station through a very simple process (previous   appointment) and pay a small fee of around 10 euros.

If you don't have Spanish citizenship, you're a resident if either:

• You stay in Spain for more than 183 days (including sporadic absences and day traveling in and out of Spain).
• The main base of your professional activities or economic interests is in Spain.
• Your spouse and minor age children reside in Spain.

Tax benefits

• In Capital Gains Tax: From 2015 on, residents in Spain are exempt of capital gains if- as always- they sell their first residency and reinvest in first residency within two years or...) and this is NEW!

You are over 65 years old and:

a) Sell your first residency even if you do not reinvest in first residency again.

b) Sell any real estate asset and invest these funds in a life annuity as a complement of your pension, with a maximum limit of 240.000 euros

• Lower Income tax burdens: as in Spain the rates are lower than in most of northern European countries.

Health System benefits

Health system in Spain is universal, which means that everyone (national or foreigner) has rights to basic an urgent health services

Residents contributing to the Spanish Social Security system or a UK National Spanish resident receiving a UK state pension, will have rights to all the services of the Health system under same conditions as Spanish nationals.

The main obligation if you become a resident is that of submitting your world-wide incomes to the Spain treasure.

Most countries in northern Europe have now higher income tax rates than Spain . As a consequence,  the income levels for the higher tax rates start lower in Spain than in other countries.

If you are a Spanish resident, you need to have a Spanish registered car and a Spanish driving license, unless you have got an European driving card.

You need to make your choice and vote  

New double taxation agreement Spain-UK

Entering into force June 2014, it will replace the existing tax treaty which was signed on 21 October 1975.

Be aware that, in some cases, Spanish national rules might be more benefitial.

Some aspects of it:

Dividends, interest and royalty payments

No withholding tax will be accrued on interest and royalty payments and to dividend distributions from qualifying participations (representing a minimum 10% participation in the company) made by Spanish or UK companies to residents in the other State, provided that the recipient of the income is the beneficial owner.

Dividends from non-qualifying participations may benefit from a reduced 10% withholding tax.

New rules on avoidance of double taxation on dividends received by Spanish residents from UK entities

Dividends received by a Spanish entity from a UK subsidiary that does not meet the requirements for the Spanish participation exemption will no longer be exempt and will only entitle the recipient to a foreign tax credit equal to the lower of the tax effectively paid abroad or the Spanish tax on such income.

Capital gains tax on shares of real estate companies

Article 13 of the new Treaty enables Spain to impose tax on capital gains deriving from the transfer of shares (or comparable interest) of an entity when more than 50% of its value derives, directly or indirectly, from real estate properties located in Spain.

This capital gains tax does not apply if the shares are substantial and regularly traded on a stock exchange, even if other than a Spanish or UK stock exchange.

Gains from the alienation of shares, or other rights, which directly or indirectly entitle the owner of such shares or rights to the enjoyment of immovable property situated in a Contracting State, may be also taxed in that State.

Trusts and partnerships

Article 4 aims at providing treaty eligibility to income and gains obtained by these entities unless it results in the income not being taxed in either of the Contracting States.

Anti abuse clause

Article 23 :treaty benefits will not be applicable to transactions where the main intention of the parties is to benefit from the same.

Exchange of info

Article 26:  exchange of information provision as per the OECD Model.

The Treaty also seems to include certain specific rules for recognizing the new SOCIMI (Spanish REIT) tax regime, potentially providing attractive planning opportunities in connection with current and future real estate investments in Spain

The Engish version of the DTA can be found here:-

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/412302/spain-dtc.pdf