Dream or reality

Rick

You may not know that if tax resident in Spain,  one must pay tax on one ‘s worldwide income, unless the agreement between Spain and the other country states otherwise.    So all income in UK, with the exception of a Crown Pension (and even that must now be declared  meaning it is taken into consideration and one pays more tax) and rental income in UK, on which one pays UK tax and then maybe a top-up tax in Spain too.  All other income is taxable in Spain.

We have a property in the Philippines .   We have to pay  tax in Spain on just owning that property.    It is the same tax that non-residents who own a property in Spain pay on say a ‘holiday home’. 

Also, if tax resident in Spain one must declare assets owned outside Spain which amount in total to more than 50,000 euros.  So a property, bank accounts, shares etc.  That is in addition to any income on the assets, which is also taxed.

And inheritance tax laws in Spain are far more draconian than those in UK and payable by the person who inherits and not by the deceased person’s estate as in UK.

This message was last edited by johnzx on 10/01/2017.

Rick

In principle johnzx is correct but as has been mentioned before individual circumstances can differ esepcially on tax laibilities.

Best advice is to speak to HMRC and an accountant in the UK, and then to an expert on Spanish taxation (Gestor / Accountant or even the Spanish tax office etc) about your own individual circumstances

Good advice on here but research more

Then there is Tony down the pub and staying under the radar of course

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Tadd1966, thanks for the advice, I think I have achieved my aim with this thread now.

To summarise, I need to rent first, investigate utilities  and communal costs for the location we are looking to buy in. Buy a south facing house, check whether the location has fellow retirees to keep us company, buy Spanish health insurance and to speak to lawyers both in the U.K.and Spain before making our purchase.And more importantly don't have too much money in the bank or the Spanish Government will tax it. This is all of course dependant on what our blundering government can negotiate. 

I would like to thank everyone for their advice on this thread

kind regards Rick

Rick   And more importantly don't have too much money in the bank or the Spanish Government will tax it

You do not get taxed for having it ,  just on any income you may derive from it.

Rick -To summarise, I need to rent first, investigate utilities  and communal costs for the location we are looking to buy in. Buy a south facing house, check whether the location has fellow retirees to keep us company, buy Spanish health insurance and to speak to lawyers both in the U.K.and Spain before making our purchase.And more importantly don't have too much money in the bank or the Spanish Government will tax it. This is all of course dependant on what our blundering government can negotiate. 

Good summary with very relevant points. I would add one other thing. In Murcia region there is inheritance tax between spouses.(Residents)  Also unless you like the company of many noisy drunken Brits during the summer avoid buying in holiday and golf resorts.

Johnzx, thanks, that's reassuring. As we don't expect to make revenue just interest which I would expect to pay taxes on.

Micky Finn, that's interesting perhaps the apartment should it evolve may have to go in my wife's name, as she is 8 years younger and considerably healthier than me.

Rick,      The laws of inheritance are governed by each Region, which can improve on the conditions set out by central government but can make them worse.

 This means some Regions do not impose inheritance tax on Spouses and others use different percentages.   So you would be wise to check the Region where you will live. 

But remember, if you put all your property in the name of your wife, and she should unexpectedly die before you, then you would be inheriting 100% of any property and not just 50%,  which might affect the amount. if any, that you would be required to pay in inheritance tax.

There is an excellent on line pdf file on inheritance tax in Murcia by an English Spanish based lawyer here;

http://www.daviessolicitors.com/wp-content/uploads/2014/11/Murcia-Region-Inheritance-tax-guideine-copy-31.pdf

Thanks Mick and John