Some questions about moving to Moraira - Page 3

traceracing wrote on Mon Feb 17, 2020 4:07pm:

Lynnie,

Firstly, to put your mind at rest, you won't be deported post transition (assuming you're not an axe murderer  :)  )

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If you visit Spain for 90 days or longer you are required to register as a resident. If you stay for more than 183 days in the calendar year you become fiscally resident and liable for taxes on worldwide earnings in Spain. I note that you are selling your UK house (our sale is in progress). Be warned that Spain taxes CGT in the year of receipt, so you would need to ensure you stay under the 183 day limit for 2020 or risk giving the Spanish taxman around 23% of the CGT value. If however the 183 days is only breached in 2021 (tax year = calendar year in Spain) then you would not pay tax on the profit from the house sale.

Always a good idea to rent first and then buy when you are sure of where you want to be, which is what we are doing.

LynnieB wrote on Mon Feb 17, 2020 3:29pm:

Hi, we have been holidaying in Moraira for the last 5-6 years and have decided that we want to move there permanently.  My main worry is that we sell our property in the UK, move to Moraira only to be told later that we cant stay full time.  Is this likely to happen?  I don't know ...

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...if it will make any difference to our situation, but my father in law has residency in El Verger and has been there for the last 10 years or so, will that help?

We will have a good amount of money in the bank from the sale of our house here, my husband is looking to start his own business and I also will be working.  Do we rent for a year, save and buy/mortgage?

There is so much to think about as if we rent I want somewhere where I can stay for the year and not have to move out for the peak months, we also have pets to consider.

I have read that as long as you have residency by the end of December 2021 you will not have to return to the UK (only stay in Spain for 183 days)?

I don't know where to start.  Any help or advice would be much appreciated!

Thank You

traceracing wrote on Mon Feb 17, 2020 4:07pm:

Lynnie,

Firstly, to put your mind at rest, you won't be deported post transition (assuming you're not an axe murderer  :)  )

Read more...

If you visit Spain for 90 days or longer you are required to register as a resident. If you stay for more than 183 days in the calendar year you become fiscally resident and liable for taxes on worldwide earnings in Spain. I note that you are selling your UK house (our sale is in progress). Be warned that Spain taxes CGT in the year of receipt, so you would need to ensure you stay under the 183 day limit for 2020 or risk giving the Spanish taxman around 23% of the CGT value. If however the 183 days is only breached in 2021 (tax year = calendar year in Spain) then you would not pay tax on the profit from the house sale.

Always a good idea to rent first and then buy when you are sure of where you want to be, which is what we are doing.

Golandrina wrote on Mon Feb 17, 2020 5:24pm:

Have you read the messages above?   There is information there that should help to answer some of your queries.

LynnieB wrote on Mon Feb 17, 2020 4:58pm:

Thank you for your reply. So does this mean I would be better off leaving it until early 2021 to move as to avoid that hefty tax?

thanks  lyn

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JillS wrote on Mon Feb 17, 2020 6:53pm:

Hi LynnieB

YOu'll be doing as we're doing.  Moving out later this year, but make sure that your 183rd day falls into 2021 (that's cumulative, so in one go or in different trips during this year) .  My husband and I aim to do a rekki trip in May for 2 weeks (Moraira area), so I work it out tha...

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...t if we leave it until 19th July to move to Spain at the earliest, that pushes us into 2021 for our 183rd day and therefore become liable for tax for that year (2021, which you then do a tax return for in 2022).  Hope that makes sense.  We are currently selling and are doing this also to avoid CGT on our UK sale, but allows us to get to Spain and apply for residency before the brexit transition cut off (end Dec 2020).  Being a resident is different to becoming a fiscal resident, that confused me for a time when I started looking into everything.

Thanks

Jill

JillS wrote on Mon Jan 27, 2020 11:26am:

Hi Dave and Sharon

You senario sounds exactly like ours.  We intend to land around 19th July for the exact reasons of CGT on our house sale here next month.  I've had advice from the 'wonderful' Jim (of Jim's guides) and MyLawyerInSpain, happy to send you my list of questions to them if that helps you, me...

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...ssage me personally. 

Finding a good rental is the biggie for us, we have no idea where to start as we also aren't set on any area yet.  We were going to do a rekki in May to try and pin this bit down.  That has been calculated out of our 183 days (hence our 19th July date for moving).

If anyone knows of a good rental agency to work with that'd be helpful.  We are keen on Moraira/Javea and inland to Jalon Valley direction too.

Good luck with all the planning.  Oh btw we did our NIE at the Spanish Consulate in London, used Jim's Guides and on line examples of the paperwork and it worked like a dream.  you have to visit in person.

Jill