Join the Oliva forum
My name's Alex and this is my website all about Oliva in Spain. Register now for free to talk about Brexit and the EU: living, holidaying and moving to Oliva and much more!
In addition to the financial requirements it should be remembered that anyone moving before Dec 31st. if not already of pensionable age and therefore entitled to an S1 will still be entitled when they do reach that age.
Move after that and you will not be entitled so will be looking at paying for PHI for the first year then for convenio especial in perpetuity (€60/mth if under 65 and €160 if over) with the full cost of all medicines on top.
tebo53 wrote on Fri Aug 21, 2020 3:33pm:
Hi,
To gain residency before 31st December, yes you could rent an apartment but you also need to prove that you live here full time which in your case may prove difficult.
Read more...
The way the housing market is at the moment in the UK I doubt very much that you will complete your house sale and get fully settled over here in Spain before 31st December 2020 and, i imagine there will be CGT to pay somewhere along the line.
It's already been mentioned about income requirements after 1st January 2021 and also full healthcare cover for you and any dependants.
Loads to think about but it's still possible one way or another if you are determined ☺
Steve
Hi Steve
I think you’re right - Even if I find a buyer quickly in this buoyant housing market I will never be ready to move to Spain by the end of 2020. Someone has already mentioned CGT - i assume this is in the context of renting in Spain whilst still owning a house, otherwise as it’s my only residence I wouldn’t be liable for CGT.
Regarding income and health insurance, the latter is to be expected as I will no longer be an EU citizen (very sadly), but my income plus savings might squeeze me through unless the pound plummets even more. Every time I calculate the cost of the villa I want to buy it literally goes up by a few thousand pounds.
i can see there is a huge amount of bureaucracy when buying and settling in Spain and I am very grateful for all the info on this Forum. I’m still wading through the various acronyms with which you are all so familiar.
Many thanks for your help. Ann
Ann21 wrote on Fri Aug 21, 2020 5:02pm:
Hi Steve
I think you’re right - Even if I find a buyer quickly in this buoyant housing market I will never be ready to move to Spain by the end of 2020. Someone has already mentioned CGT - i assume this is in the context of renting in Spain whilst still owning a house, otherwise as it’s my...Read more...
... only residence I wouldn’t be liable for CGT.
Regarding income and health insurance, the latter is to be expected as I will no longer be an EU citizen (very sadly), but my income plus savings might squeeze me through unless the pound plummets even more. Every time I calculate the cost of the villa I want to buy it literally goes up by a few thousand pounds.
i can see there is a huge amount of bureaucracy when buying and settling in Spain and I am very grateful for all the info on this Forum. I’m still wading through the various acronyms with which you are all so familiar.
Many thanks for your help. Ann
Ann....You pay capital gains taxes after you have sold your house in the UK and have the money in your bank....hence a capital gain.
Steve
Movingon wrote on Fri Aug 21, 2020 4:32pm:
In addition to the financial requirements it should be remembered that anyone moving before Dec 31st. if not already of pensionable age and therefore entitled to an S1 will still be entitled when they do reach that age.
Move after that and you will not be entitled so will be looking at paying for PHI for the first year then for convenio especial in perpetuity (€60/mth if under 65 and €160 if over) with the full cost of all medicines on top....
Read more...
...
Thank you - that’s very interesting. I will be liable for £160 which is much more than I was expecting as I thought I’d seen somewhere that a family of four would cost about that much. All a bit depressing.
tebo53 wrote on Fri Aug 21, 2020 5:19pm:
Ann....You pay capital gains taxes after you have sold your house in the UK and have the money in your bank....hence a capital gain.
Steve
Oh my goodness what is going on? So much bad news. If I sold my sole residence in the UK and then bought again in the UK there would not be any CGT to pay. I did not realise buying abroad meant I was liable for CGT in the UK. It’s very depressing and I am baffled.
Advertisement - posts continue below
Posted: Sat Aug 22, 2020 11:47am
Helpful member
Snoxell wrote on Fri Aug 21, 2020 2:18pm:
Ann21 beware of Capital Gains Tax on your uk house sale
Ann this may help re cgt and rent here
https://www.primelocation.com/international-property/news/consider-this-capital-gains-tax/
So not being U.K. resident before purchase abroad no cgt
Ann21 wrote on Fri Aug 21, 2020 5:34pm:
Oh my goodness what is going on? So much bad news. If I sold my sole residence in the UK and then bought again in the UK there would not be any CGT to pay. I did not realise buying abroad meant I was liable for CGT in the UK. It’s very depressing and I am baffled.
Hi Ann,
it's not CGT to UK tax its CGT to Spanish tax as you would be a Spanish resident. Just to put all info into context for you to consider. If you obtain residency (new TIE system now) before January 1st, your financial requirements are 5500€ savings in bank (must be in Spanish bank for 3 months) recently revised figure, and show income of just under 500€month. This increases to approx 7500€ if 2 persons applying. After January the requirements zoom up by 4 times that amount, I have read 26k€for 1 person and 32k€ for 2 people. As figures of present requirement has been reduced, I don't know if therefore the non EU figure after January has also been reduced but I, m sure someone else more learned than myself will confirm the correct amount. Now if you do get residency completed by Dec 31st, you would start the new year as a resident and therefore be liable for Spanish CGT on selling your UK home as it had become a 2nd home once you gained residency because your primary home would be either your new Spanish bought property or a rented home until you purchase. If you are putting all your sale proceeds into another main primary residence in Spain CGT can be avoided, and if a lesser property price then CGT is on the difference. If you are a UK state pensioner then private health insurance is not needed as you will be covered by your UK S1 if applied for before December but after January, you would have to have private health care for life (very expensive) or even the Spanish health care called Convenio Especial which as informed is at present 157€ month over 65. You would also not be liable for UK pension increases after January residency but OK if residency before January.
It is a lot to take in I know, an awful lot to consider. This information is what is known at present but things may change after January. Best scenario is get house sold by December and get your residency done by then too. If you are determined you could do it but 1st step would be step up selling the home and put money into a Spanish bank, although you need to open an account in person in Spain or possibly engage a solicitor to arrange with power of attorney. Could be you have left it all a bit late for pre January but I would check with someone if the post January figures have also been reduced which you may be happier with. Also if you have obtained residency by January and you drive, if your driving licence changeover is applied for before January it will be done automatically but after January you will need to take a Spanish driving test(in Spanish).
I can recommend a person to help you with residency called Uma at "getlegalinspain.com, who has been well recommended by many on this forum. She can also assist with getting NIE, driving licence and many aspects of your requirements.
If this all seems daunting to secure residency by January, then be aware if you sell your UK home in first half of 2021 then you need to postpone your residency application until second half of the year to avoid CGT to Spanish tax. Residing in Spain over 183 days results in Spanish fiscal residency. You would not be liable to CGT if sale is completed this year as you would not be a Spanish resident until the following tax year.
I wish you good luck in your decisions
Regards
Pauline
briret wrote on Sat Aug 22, 2020 11:47am:
Ann this may help re cgt and rent here
https://www.primelocation.com/international-property/news/consider-this-capital-gains-tax/
Read more...
So not being U.K. resident before purchase abroad no cgt
Thank you for for this useful link. I think I’ll speak to my tax office just to clarify.
paulsav wrote on Sat Aug 22, 2020 11:51am:
Hi Ann,
it's not CGT to UK tax its CGT to Spanish tax as you would be a Spanish resident. Just to put all info into context for you to consider. If you obtain residency (new TIE system now) before January 1st, your financial requirements are 5500€ savings in bank (must be in Spanish bank for 3 mo...
Read more...
...nths) recently revised figure, and show income of just under 500€month. This increases to approx 7500€ if 2 persons applying. After January the requirements zoom up by 4 times that amount, I have read 26k€for 1 person and 32k€ for 2 people. As figures of present requirement has been reduced, I don't know if therefore the non EU figure after January has also been reduced but I, m sure someone else more learned than myself will confirm the correct amount. Now if you do get residency completed by Dec 31st, you would start the new year as a resident and therefore be liable for Spanish CGT on selling your UK home as it had become a 2nd home once you gained residency because your primary home would be either your new Spanish bought property or a rented home until you purchase. If you are putting all your sale proceeds into another main primary residence in Spain CGT can be avoided, and if a lesser property price then CGT is on the difference. If you are a UK state pensioner then private health insurance is not needed as you will be covered by your UK S1 if applied for before December but after January, you would have to have private health care for life (very expensive) or even the Spanish health care called Convenio Especial which as informed is at present 157€ month over 65. You would also not be liable for UK pension increases after January residency but OK if residency before January.
It is a lot to take in I know, an awful lot to consider. This information is what is known at present but things may change after January. Best scenario is get house sold by December and get your residency done by then too. If you are determined you could do it but 1st step would be step up selling the home and put money into a Spanish bank, although you need to open an account in person in Spain or possibly engage a solicitor to arrange with power of attorney. Could be you have left it all a bit late for pre January but I would check with someone if the post January figures have also been reduced which you may be happier with. Also if you have obtained residency by January and you drive, if your driving licence changeover is applied for before January it will be done automatically but after January you will need to take a Spanish driving test(in Spanish).
I can recommend a person to help you with residency called Uma at "getlegalinspain.com, who has been well recommended by many on this forum. She can also assist with getting NIE, driving licence and many aspects of your requirements.
If this all seems daunting to secure residency by January, then be aware if you sell your UK home in first half of 2021 then you need to postpone your residency application until second half of the year to avoid CGT to Spanish tax. Residing in Spain over 183 days results in Spanish fiscal residency. You would not be liable to CGT if sale is completed this year as you would not be a Spanish resident until the following tax year.
I wish you good luck in your decisions
Regards
Pauline
Thank you Pauline. I’ve glanced at it but I’ll settle down this evening and will try to make sense of it all. At this point in time it’s unlikely I will be able to get Spanish residency this side of the watershed. My house goes on the market on Thursday and I will need to find a buyer before I can buy in Spain. I’m hoping my offer is accepted and i can buy and sell in a chain. Indeed there may be a chain behind me. Or should I sell, bank the money in Spain and then buy? Thanks again. Ann
paulsav wrote on Sat Aug 22, 2020 11:51am:
Hi Ann,
it's not CGT to UK tax its CGT to Spanish tax as you would be a Spanish resident. Just to put all info into context for you to consider. If you obtain residency (new TIE system now) before January 1st, your financial requirements are 5500€ savings in bank (must be in Spanish bank for 3 mo...
Read more...
...nths) recently revised figure, and show income of just under 500€month. This increases to approx 7500€ if 2 persons applying. After January the requirements zoom up by 4 times that amount, I have read 26k€for 1 person and 32k€ for 2 people. As figures of present requirement has been reduced, I don't know if therefore the non EU figure after January has also been reduced but I, m sure someone else more learned than myself will confirm the correct amount. Now if you do get residency completed by Dec 31st, you would start the new year as a resident and therefore be liable for Spanish CGT on selling your UK home as it had become a 2nd home once you gained residency because your primary home would be either your new Spanish bought property or a rented home until you purchase. If you are putting all your sale proceeds into another main primary residence in Spain CGT can be avoided, and if a lesser property price then CGT is on the difference. If you are a UK state pensioner then private health insurance is not needed as you will be covered by your UK S1 if applied for before December but after January, you would have to have private health care for life (very expensive) or even the Spanish health care called Convenio Especial which as informed is at present 157€ month over 65. You would also not be liable for UK pension increases after January residency but OK if residency before January.
It is a lot to take in I know, an awful lot to consider. This information is what is known at present but things may change after January. Best scenario is get house sold by December and get your residency done by then too. If you are determined you could do it but 1st step would be step up selling the home and put money into a Spanish bank, although you need to open an account in person in Spain or possibly engage a solicitor to arrange with power of attorney. Could be you have left it all a bit late for pre January but I would check with someone if the post January figures have also been reduced which you may be happier with. Also if you have obtained residency by January and you drive, if your driving licence changeover is applied for before January it will be done automatically but after January you will need to take a Spanish driving test(in Spanish).
I can recommend a person to help you with residency called Uma at "getlegalinspain.com, who has been well recommended by many on this forum. She can also assist with getting NIE, driving licence and many aspects of your requirements.
If this all seems daunting to secure residency by January, then be aware if you sell your UK home in first half of 2021 then you need to postpone your residency application until second half of the year to avoid CGT to Spanish tax. Residing in Spain over 183 days results in Spanish fiscal residency. You would not be liable to CGT if sale is completed this year as you would not be a Spanish resident until the following tax year.
I wish you good luck in your decisions
Regards
Pauline
Hello Pauline. I’ve just carefully read through your message again - thank you.
This is my predicted scenario. House in UK going on market on Thursday. The market is buoyant so hopefully a buyer will come along quite soon. Once price agreed I will then offer on villa in Oliva Ideally the sale and purchase will go along in tandem and I will complete on both at the same time - in early 2021. Is this ridiculous thinking?
I will therefore take out comprehensive health insurance and I will assume my state pension will not increase though I don’t think that’s definite.
The house I am buying is cheaper than the house I am selling so that I can afford to pay the necessary taxes and legal fees, removals etc and have enough leftover to bank in Spain Would I be liable for Spanish CGT on the difference between the two prices? If so, do you know at what rate?
As for financial requirements, I am just short of the €30,000 thanks to the weakness of the pound I’d have been fine just a few months ago! But I read somewhere that each case is considered separately on merit Who knows, maybe the pound will strengthen again after 1 January - or maybe it will nosedive I believe once there is a vaccine the pound will recover but that will be too late for me
All things considered I may not be able to move to Spain after all It’s been a dream for many years but I might have left it too late A driving test in Spanish would be quite a stumbling block!! My school girl Spanish isn’t brilliant but hopefully I woukd quickly pick up the language - but possibly too late for my driving test!
I’m very grateful for your advice. The forum has been brilliant and I feel it’s better I know everything now rather than when I’m further down the line and might be at a point of no return.
Many thanks. Ann
Find more Brexit and the EU topics from a particular area:
Or view all Brexit and the EU topics in all of Costa Blanca.
