Does anyone have dual residency? (Spain & UK) - Page 3

Colin, saying you have to remain in Spain for 183? Days I find strange. What would stop you going to UK whenever you like to see family and return when you like. Are the Spanish going to keep tabs on you? 

Hi Normy,

Once a foreign national has been permanently resident in Spain for 5 years and acquired "residencia permanente" status, they can come and go from Spain as they please and can even leave Spain for up to 2 years without voiding their Spanish residency.  

However, for anyone who has lived in Spain less than 5 years, they cannot leave Spain for 183 days or more in each tax year (1 January to 31 December), as they would lose their residency.

The Spanish authorities have always "kept tabs" on us, but weren't stringent about applying their residency laws when the UK was part of the EU.  Post-Brexit, we have now joined the throng of other Third Country Nationals and will be subject to the checks that many other foreigners have experienced for decades.

Kind regards, 

Kim

Hi,

It was someone else who wrote that you have to spend 183 days in Spain once you become resident. My Spanish tax advisor has told me that, once you are tax resident in Spain, the authorities don't care how long you spend in Spain as long as you pay your taxes - which makes total sense to me. Unfortunately we are stuck in the UK at the moment but would expect to spend equal amounts of time in each country - gradually increasing our time in Spain.

Best regards,

Colin

Hi Colin,

That was certainly the case before 31 December 2020, but even if your Spanish tax advisor knows about Schengen regulations, it sounds as though he doesn't understand the implications on UK citizens failing to comply post-Brexit?

As discussed by the 'British in Europe' citizens' rights organisation, since the UK left the EU, UK nationals resident in the EU prior to 1 January 2021 are covered by the Withdrawal Agreement.  That legislation sets out citizens' rights on similar terms to when the UK was part of the EU and includes the time limit that Brits can be away from their host country.  As I said previously, how much time you've been resident in Spain determines how long you can spend in the UK. 

This isn't an issue for people who don't want to be tax resident in the EU, but should be of concern to those who may not be aware of the risk.

Kind regards,

Kim

Thanks for the link Kim - I will have a read.

Thanks for reply Colin, I have similar issues eg.elderly mother in UK,I think similar so long as Spain gets its taxes why should it care how long you away.Thanks also to Kimmy (knows his stuff!).

Her! 😘😂

In the thread of this has anyone addressed inheritance tax? Hear what’s said Re capital gains, apparently not charged if you are over 65, be interested to know if that’s completely zero? But concerned that if a parent or partner died, if id be subject to a large inheritance tax bill, where in the case of my husband I already own it jointly but I know the Spanish don’t see it that way, in their eyes if be inheriting 50%, and therefore liable to tax on that? Kind regards Sarah 

Hi Sarah,

Yes, you would have to inherit your husband's 50% share of the property.  A friend of mine also had to inherit her husband's car, because it had been purchased in his name only (not something we'd even think about in the UK). While Spain's national Inheritance laws are quite high, each of the individual autonomous regions can apply their owns rules.  In Comunidad Valenciana, the allowances are generous and, in some circumstances, can negate the tax altogether, so if this is something that's worrying you, it may give you comfort to ask an advisor for a ballpark figure.  Do you have your Spanish wills written under UK law?

Kind regards, 

Kim

Hi we don’t have any Spanish wills, we’re not in Spain. To be honest I think we’ll stick with 90 days. I’m not against paying income tax at all, but I’ve worked hard all my life to acquire joint assets to be able to retire at 55, I’ve paid for the lions share, I’ll be blowed if I’m going to pay tax on inheriting something I’ve paid for, plus with ageing parents there’s more, also swapping car reg plates won’t work when we want to return, plus car insurance, driving licenses, etc etc. Thanks for your advice though. 😃