Does anyone have dual residency? (Spain & UK)

You have to pay tax somewhere.

You will remain a British citizen, but you must choose your country of Residency. Although there are hurdles to gaining Residency, it really all boils down to income tax. Your Residency is aligned to your income tax. You support the country where you are Resident through payment of income tax. If you don't pay income tax, you can't be Resident.

If you have Spanish Residency, you must register, declare and pay income tax in Spain (although there are some categories of income that remain taxable in the UK, they must be declared in Spain). You must be in Spain >183 days/year.

If you don't do that, you must relinquish your Spanish Residency and live with the 90/180 rules.

Residency is either/or, not both.

Thanks for your feedback.

I appreciate that residency is primarily about taxes & benefits but the UK Government clearly cater for dual residency (https://www.gov.uk/government/publications/dual-residents-hs302-self-assessment-helpsheet/hs302-dual-residents-2020). I don't have a problem paying tax in either country - I just don't want to pay it twice!

I can't find any official Spanish documentation which states I will lose my residencia if I happen not to have been in the country for less than 183 days. I did find reference to tax and 183 days on a Spanish lawyers site though (https://tejadasolicitors.com/english-lawyers-malaga/spanish-residency/#:~:text=Having%20a%20Spanish%20residency%20permit,the%20Tax%20office%20in%20Spain.). The key sentence being "In general terms, the article 9 of the IRPF Law defines, among other requirements, that tax residents in Spain will be those who stay for over 183 days a year in the national territory or whose main nucleus or base for financial activities or interests is in Spain."

If you can aim me at something which formally confirms the absolute obligation for me to be in Spain for at least 183 days or lose my residencia I would be really grateful!

Thanks again,

Colin

https://www.immigrationspain.es/en/maximum-time-outside-spain-without-losing-residency/

When you receive your TIE, it will have a 5 year life - it will be temporary, so covered under Article 162.2 of Royal Decree 557/2011

After 5 years you can apply for permanent Residency, and the rules change

Spain and the UK have a "non-double-taxation" agreement, which endures post-Brexit.

Hi Colin,

The link you've included to the Gov.uk website says, "Page not found", so the information may have been out of date and removed.

Kind regards, 

Kim

Thanks Kim - really weird! Try this one...

https://www.gov.uk/government/publications/dual-residents-hs302-self-assessment-helpsheet

Thanks for the link! It would be interesting to know when the article was published as it refers to 1 and 2 years temporary residency - not 5 which is what we have been granted. However, it does corroborate the view that we have to be in Spain for at least 183 days.

I will take it up with my own abogado and others to see if the position is still the same and to establish if dual residency (as opposed to dual-citizenship which is clearly not allowed in Spain) is an option.

Cheers,

Colin

Also worth noting that whatever you may want, your fiscal residency will be a question of fact, so what you may think you will achieve re accessibility to Spain/UK,  will not necessairly follow to be a view shared by either the UK or Spanish taxation authorities.

Hi Colin,

The difference in residency time frames detailed in the article Kelvin quoted is that 1 year + 2 x 2 year renewals refers to TCNs (Third Country Nationals, which UK citizens became on 1 January), as opposed to those of us who attained 5 years' temporary residency under the terms of the Brexit Withdrawal Agreement.

In order to determine whether you are fiscally resident in Spain or the UK, have you taken the residency tests in the Dual Taxation Agreement, e.g. Permanent home, Centre of vital interests and/or Habitual abode?

However, as Kelvin has already described, in order to retain your Spanish residency, you can't leave Spain for more than 6 months in each of the first 5 years of your (temporary) residency - the DTA between the UK and Spain ensures that you don't pay tax on the same income in both countries, although there are some administrative procedures to go through to put that in place.

The bottom line is that, in order to comply with the requirements to retain your Spanish residency, you will have to become fiscally resident here.

Kind regards, 

Kim

Thanks George. The following quote is taken from the UK Government web site, "The UK has a double taxation agreement with Spain to make sure that you do not pay tax on the same income in both countries. You can ask the relevant tax authority about double taxation relief. Existing double taxation arrangements for UK nationals living in Spain have not changed.". As I'm not working and won't start taking a pension until 2022, I have no meaningful income so tax is of little consequence at the moment.

My main concern is not to be constrained by the 183 day rule if I can help it.

Cheers,

Colin