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Looking for recommendations for solicitor/support re residency and taxes

Posted: Wed Dec 18, 2019 9:23am
14 replies305 views6 members subscribed
IzzyN

Posts: 9

1 helpful points

Location: Alcoy

Joined: 18 Dec 2019

Hi there 

We bought a property in the Vall d'Alcala in the summer.  I am English, hubby is Irish and we travel at least 9 months of most years in our motorhome.  Now it's likely that Brexit will go ahead, we want to consider residency and understand movement in and out of Spain as well as       implications regarding tax and whether we need to be resident for tax purposes.   I am hoping someone can recommend a solicitor or other advisor in these matters.

Many thanks

Izzy & Phil 

Boca J

Posted: Wed Dec 18, 2019 4:14pm

Boca J

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Joined: 3 Jun 2019

Posted: Wed Dec 18, 2019 4:14pm

Sun Lawyers , in La Zenia ,  0034 - 966 730 661

jimtaylor

Posted: Wed Dec 18, 2019 4:18pm

jimtaylor

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Posts: 5612

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Joined: 2 Feb 2017

Posted: Wed Dec 18, 2019 4:18pm

As a newcomer to the forum you're excused, but the topics of residency, tax, travel etc have been asked and answered many times already.

Start by looking at:

Jim's guides - your complete guide to Spain

A couple of points:

If you don't have residency, you yourself will only be able to spend 90 out of 180 days in the EU post-Brexit.

The norm for fiscal residency is that you spend 183 days here in any calendar year. However, if the only property you own is in Spain, then Spain would be considered your 'centre of vital interests', and you would be tax resident here.

IzzyN

Posted: Sat Dec 28, 2019 10:39am

IzzyN

Original Poster

Posts: 9

1 helpful points

Location: Alcoy

Joined: 18 Dec 2019

Posted: Sat Dec 28, 2019 10:39am

 Hi Jim

Thanks for your reply.  I can see lots of info about the matter but none (that I can find) answers a specific question I have which has arisen from various bits of information I have read.  If the property we own in Spain (our only property) is valued at less than €50k, does this property count in terms of being a fiscal resident?  We won't be in Spain for more than 183 days in any year as we travel almost full-time in our motorhome.  Many thanks Izzy

jimtaylor

Posted: Sat Dec 28, 2019 11:06am

jimtaylor

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Posted: Sat Dec 28, 2019 11:06am

Hi Izzy. In my opinion, if the only property you own is in Spain, irrespective of its value, and you don't elsewhere have any roots, then Spain would be considered your country of residence for tax purposes. Quoting from the double taxation treaty between the UK and Spain (which won't be affected by Brexit):

he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);

if the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;

Whether or not you would be liable to actually pay tax here does of course depend on your income, and I couldn't advise on that without knowing your income and ages.

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IzzyN

Posted: Sat Dec 28, 2019 11:14am

IzzyN

Original Poster

Posts: 9

1 helpful points

Location: Alcoy

Joined: 18 Dec 2019

Posted: Sat Dec 28, 2019 11:14am

Hi Jim

Many thanks for your super quick and helpful reply!  We do maintain an address in the UK where all our bank statements etc go and where we are registered on the electoral roll.  It's my Mums house and were hardly ever there but it's home in a sense.  I am 52 in May and Phil (with the Irish passport but born in NI) is 49.  He has a UK military pension worth around £13k pa and currently taxed in UK.  I have a very small amount of earnings around £3k pa from a small website I run.  Between us we have around £60k in UK based investments (ISA's) where we re-invest the income.  We are just trying to prepare ourselves for 2021!

Kind regards

Izzy

jimtaylor

Posted: Sat Dec 28, 2019 11:43am

jimtaylor

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Posted: Sat Dec 28, 2019 11:43am

Hi Izzy. Good news for you - Phil's military pension can only be taxed in the UK., and your level of earnings wouldn't be taxable. Even with the ISAs I can't envisage any tax liability here.

That just leaves freedom of movement to deal with. As Phil has an Irish passport, then the length of time he spends here won't be monitored. In your case, you'd be limited to 90 days in any 180 days, as I said originally. If you want to exceed that, then you'd have to obtain residency here. With Phil's income, he wouldn't have a problem, and if your own investments aren't considered adequate to prove proof of finances, then you could apply as a family member of Phil.

IzzyN

Posted: Sat Dec 28, 2019 11:50am

IzzyN

Original Poster

Posts: 9

1 helpful points

Location: Alcoy

Joined: 18 Dec 2019

Posted: Sat Dec 28, 2019 11:50am

Thanks Jim.  There is an EU directive 2004-38-EC allows me to travel with Phil on his Irish passport as we are married...the info is in this post by some motorhome friends of ours who have researched it extensively.  I'll keep my eyes peeled that this doesn't change with Brexit but I think it's unlikely.  I hope it means I won't need to apply for residency so that we can continue to travel around Europe without restriction.  Thank you for your help, you have answered a lot of questions very quickly!

Kind regards

Izzy

https://www.travel-cook-eat.com/schengen-rules/

jimtaylor

Posted: Sat Dec 28, 2019 12:29pm

jimtaylor

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Posted: Sat Dec 28, 2019 12:29pm

Izzy, my apologies for misleading you. That's an excellent article you've given the link for. What annoys me is that I've read through the EU directive before, and obviously didn't take in the implications of the critical clause.

Enjoy your freedom to roam!

IzzyN

Posted: Sat Dec 28, 2019 12:31pm

IzzyN

Original Poster

Posts: 9

1 helpful points

Location: Alcoy

Joined: 18 Dec 2019

Posted: Sat Dec 28, 2019 12:31pm

Glad I could provide you with some info that may be of help to you...we were jumping for joy when we discovered it!  

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