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A dummies guide to brexit as I need help with what I would need to do

Posted: Tue Aug 25, 2020 8:48am
7 replies244 views6 members subscribed
Natalie24

Posts: 17

3 helpful points

Location: Teulada

Joined: 28 Nov 2019

I’m hoping to sell my house and be over before the end of the year but I case I’m not what would I need to do about becoming a resident, I like to think I’m not a divvy but I really can’t figure out on the government website what I would have to do so if someone can explain if they don’t mind in simple terms that would be great. I’m a 50 year old lady coming over with a retired guide dog looking to rent first and then buy, maybe set up a small business or get a job somewhere so I will be paying into the Spanish tax system but will sell sufficient too. So before I leave the uk do I need to do anything? I do drive but someone is driving me down to Spain and getting a flight home so eventually I would like to drive, so I need help as I don’t understand can someone explain into me in simple terms please 😂😭😂

Thank you 

Natalie

Castleman

Posted: Tue Aug 25, 2020 9:29am

Castleman

Helpful member

Posts: 1

186 helpful points

Location: Sax

Joined: 1 Feb 2020

Posted: Tue Aug 25, 2020 9:29am

Hi Natalie  if you come over next year first thing you need to know is your  dog need blood tests and micro chip and paper work and  you should  be doing this four months before ,your departure ,for the rest of the information you require

I'll leave that to the seasoned forum members who'll guide with the right information 

Kimmy11

Posted: Tue Aug 25, 2020 9:48am

Kimmy11

Legendary helpful member

Posts: 6869

12554 helpful points

Joined: 8 Aug 2017

Posted: Tue Aug 25, 2020 9:48am

Hi Natalie,

The guides you're looking for are here:

Jim's guides - your complete guide to Spain 

I'd especially recommend the sections on "Residency in Spain" and "How Brexit will affect living in Spain".

The primary difference, most likely to affect your ability to gain residency/TIE, will be the financial requirements, pre- and post- Brexit.  As things currently stand and until the end of this year, a new applicant needs to prove a lump sum of €5,500 or monthly income of €500 per month - either amount would need to be deposited in a Spanish bank account for a minimum of 3 months before applying for a TIE.  From 1 January 2021, UK citizens become Third Country nationals and the financial requirements rise significantly to €28,000 lump sum or €2,400 monthly income.

Another requirement will be private health insurance, which you will need for at least the first year to support your TIE application, but you'll need to maintain if you are unable to access the Spanish healthcare system by means of social security contributions via contracted work or your own business.

With regard to driving in Spain, once you become resident here, you will be required to swap your UK driving licence for Spanish.  Pre-Brexit this is fairly straightforward, but there is a suggestion that from 1 January 2021, UK citizens will need to take a Spanish driving test to swap their licence.

To expand on Castleman's information about travelling with pets, I'd recommend reading this:

https://www.gov.uk/topic/animal-welfare/pets

Lastly, as you're planning to sell your property in the UK before the end of this year, when you become tax resident in Spain next year (after 183 days here) you may be liable for Capital Gains Tax in Spain, so that's something else to consider.

Probably best to read the guides and then come back with specific questions.

Kind regards, 

Kim

tebo53

Posted: Tue Aug 25, 2020 9:48am

tebo53

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Posts: 4776

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Location: Benidorm

Joined: 29 May 2018

Posted: Tue Aug 25, 2020 9:48am

Natalie24 wrote on Tue Aug 25, 2020 8:48am:

I’m hoping to sell my house and be over before the end of the year but I case I’m not what would I need to do about becoming a resident, I like to think I’m not a divvy but I really can’t figure out on the government website what I would have to do so if someone can explain if they don’...

...t mind in simple terms that would be great. I’m a 50 year old lady coming over with a retired guide dog looking to rent first and then buy, maybe set up a small business or get a job somewhere so I will be paying into the Spanish tax system but will sell sufficient too. So before I leave the uk do I need to do anything? I do drive but someone is driving me down to Spain and getting a flight home so eventually I would like to drive, so I need help as I don’t understand can someone explain into me in simple terms please 😂😭😂

Thank you 

Natalie

There is everything explained in every detail in Jim's Guides that can be found in the drop down menu on the left side of this page or the tab at the top of the page. 

Read through Jim's Guides sections and start making your list of things to do.

To gain residency You will need to prove that you have enough regular income to satisfy the authorities you won't become a burden on the state. You will need to have at least 3 months income paid into a Spanish bank account. You will need to have private healthcare cover paid upfront for a full year.

As things are at the moment and probably well into next year it will be very difficult indeed to find employment anywhere in Spain. As you will be classed as a third country national you won't be offered a job until the employer has offered the position to an EU citizen. Self employed is very expensive here in Spain. 

Like I said, make a list of things to do as you will get plenty of information from this site. 

Good luck.

Steve 

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Lancelot

Posted: Tue Aug 25, 2020 12:42pm

Lancelot

Very helpful member

Posts: 687

768 helpful points

Location: La Finca

Joined: 24 Jun 2019

Posted: Tue Aug 25, 2020 12:42pm

I thought if you sold your UK house whilst not a tax resident in Spain by the time you did become tax resident , the next Spanish financial year any liability would no longer apply.

So for the OP if she sold her UK house this year and hit 183 days in Spain once in the next Spanish tax year there should be no CGT liability in Spain.

I could be wrong, am I?

Kimmy11

Posted: Tue Aug 25, 2020 2:19pm

Kimmy11

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Posts: 6869

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Joined: 8 Aug 2017

Posted: Tue Aug 25, 2020 2:19pm

Hi Lancelot, 

It's all in the timing, that's why I said "may" be a CGT liability.  The OP hasn't sold her UK house yet - if she doesn't sell it this year and her Spanish residency is dependant on it, it would be wise to check whether there is different tax treatment for Third Country nationals.

Kind regards, 

Kim

Sues007

Posted: Tue Aug 25, 2020 4:41pm

Sues007

Helpful member

Posts: 281

269 helpful points

Location: Cocentaina

Joined: 19 Jul 2020

Posted: Tue Aug 25, 2020 4:41pm

Hello Natalie

There's not much I can say that has already been said by the other members who have given you in-depth information.

It's not going to be easy getting resident and it's going to be more difficult after the transition period ending December 31st.

I do wish you well with whatever you decide.

Sue 😘

Kimmy11

Posted: Wed Aug 26, 2020 9:30am

Kimmy11

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Posts: 6869

12554 helpful points

Joined: 8 Aug 2017

Posted: Wed Aug 26, 2020 9:30am

This post that was quoted has been deleted.

Hi Trotter,

Not necessarily, as I said it's all in the timing.  

We've been advising people trying to make the move to Spain this year, pre-Brexit, to sell their UK property in the first half of the year (January to June, because the Spanish tax year runs from January to December), then become resident in the second half of the year (July to December).  Even though you have to become resident from 90 days in country, you don't become tax resident until 183 days, so this timing allows you to be classed as Non-resident in Spain for 2020.  When you come to do your tax return next year for 2020, any CGT liability would be due to the UK, not Spain.  Conversely, if you spent more than 183 days in Spain this year, any CGT liability would be to Spain.

However, my point to the OP (and apologies to Lancelot for not making this clearer) is that, bearing in mind she hasn't sold her UK house, hasn't moved to Spain yet and it isn't clear whether she has already made arrangements to meet the 3 months' fiscal requirements for a TIE application (when there's only 4 months left to do so, in order to be protected by the Withdrawal Agreement), she may want to check whether CGT liability is more onerous for Third Country nationals than for UK citizens protected by the Brexit Withdrawal Agreement.

It may not be an issue in the OP's specific circumstances, I was just flagging it up as something else to check out.

Kind regards,

Kim

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