Residence, Ordinarily Resident and Fiscally Resident
Dear all, our plan were always to live in Javea and the UK 50:50 once retired. Brexit has 'forced or hands' and we will both finish work at the end of March and spend more time in Javea. We will rent a home in the medium term but are likely to buy in the longer term. We are both under state retirement age. To add I know there is a difference in the fiscal year start dates between the UK and Spain.
My understanding of the Withdrawal Agreement is scanty; but I know we can become resident in Spain (this year) and may register in the first 90 days. After 90 days we must register. If we stay in Spain for more than 179 days we become fiscally resident and become liable for taxes in the ways described so clearly in the other parts of this forum by Jim (thanks Jim if you read this).
However the 50:50 plan means we will remain ordinarily and fiscally resident in the UK for NHS and tax purposes (the NHS and HMRC notes you can be resident in two countries). My main reason for not becoming Spanish fiscally resident is because I believe the Spanish tax authorities don't recognise UK ISAs (we have our saving in these in the UK) and will tax dividends and capital gains on them.
Also I believe that we will be required to take out health insurance for the residencia process (that we have no intention to ever use) and that our EHICs may not or may not be valid after that process. Once we reach UK state retirement age we can obtain S1 certification as long as we remain resident in Spain (we are too young for the S1 process now). Our travel insurance will however cover us as we are resident in the UK and not be overseas for more than 180 days
I am as sure as I can be that some of you good people are living in Spain and the UK along similar lines but the withdrawal agreement doesn’t seem to cover this aspect of living very well (as far as I can see).Can anyone shed any light on how I make this happen registration wise please or offer any guidance? And perhaps crucially have I understood things correctly? Also have I missed any ‘elephants in the room’? Are there any professionals in the Javea area who actually understand this all?
Many thanks !