Please sanity check/ challenge my residency plan - Page 2

I've only given this topic a quick read, but I'd like to make one point clear. Applying for residency doesn't automatically make you fiscally resident for the year of application. If you move here in the second half of the year, then you might as well get the residency application done. You will only be fiscally resident for the subsequent year.

What you need to be careful about is after you've submitted your first resident tax return here, when you then opt out of the HMRC system. A friend of mine made a mistake with his application to HMRC, and they refunded tax paid in the UK even though he'd already declared that tax in his Spanish return and offset that UK tax against the amount due here. Agencia Tributaria subsequently demanded he pay the tax and imposed a fine.

Hi Lancelot,

Hopefully, this will be immaterial in your case, but just a quick correction: the time you can stay in Spain before you become fiscal residents is 182 days, not 186.  People talk about the 183 days break point, because that equates to 6 months + 1 day, and it's that extra day which tips your tax residency over.

Kind regards, 

Kim

Our purchase took 2 months.

It could have been quicker, but we were fussy with the wording of the purchase contract, and the process of back-and-forth with the contract added a couple of weeks. 

We wanted a survey, and insisted that any major issues would trigger return of our deposit. The survey took a week to get done. 

As is common here, our house had been extended, but the deeds had not been updated (which is code for "the post-construction taxes had not been paid"). We wanted clauses in the contract to deal with this.

We did not pay the 3000 Euros deposit until we had agreed the contract wording. Our 3000 Euros was paid to our solicitor, NOT to the estate agent. 

We bought our house from a German couple. so our contract had notarised copies in Spanish, English and German.

The approach we took slowed things down. If you keep an eye on this forum, you will occasionally see stories from people who took less care/got conned, and who completed quickly.

Also, don’t forget that the Spanish tax year is different to the U.K. as it runs from January to December.

Hi Jim,

Can you give me a Ball park figure on how much tax I will have to payin Spain

I will have about 800 from the state pension , plus a further 200 from a small local authority pension.

So no more than 1000 per month.

Does Spain have starting thresholds ?

If course, in UK I won't pay any tax as it's under .

Thanks

Jimmy

Hi ray    you mention in a post that you need To prove income of €750 A month. Would a joint income of say €2000. €500 And  € 1500  be acceptable.  These are  indvisual   pensions . Kind regards.  Fabi 

If you apply whilst the UK are still in the EU then the person with the lower income might have to apply as a family member of the other.

The figures in the following are somewhat out of date, but explain the requirements:

Jim's guide - The Residency certificate

Having read this thread, I did not realise that the 90day Shengen rule did not apply until after the transition period of December 2020. I thought I had read in many previous threads the Shengen rules started the day after Brexit ie. February 1st. So if I am correct with this info, we could visit for 90days as already planned (March to June) but return a week later and continue almost 2 further 90day visits right up to December 2020 when Shengen rules finally take over. Please someone confirm this for me as we have never experienced the mid summer months in Spain and did not think we ever could as we are not able to become residents and therefore had planned this year and next year as if under Shengen rules. So many people have stated Shengen rules apply once the Brexit day happens.

Regards

Pauline.

The withdrawal agreement still has to go through the House of Lords before it's passed into law, and the EU then need to ratify it next month. Assuming both of these happen, the transition period for negotiations may last until 31st December 2020 and, until that date, the free movement of people will continue as at present.

To use your words, 'Brexit day' is January 1st 2021.

Is this an edit of the post you made originally? If so, it's much better to post a new reply than edit an existing one.

One of the allowances depends on age. Tell me your age, and I'll tell you how much income you can receive before you start to pay tax.