Please sanity check/ challenge my residency plan - Page 3

Hi Pauline,

I agree it's confusing.  The UK government's Brexit website continues to state that nothing will change until the end of the transition/implementation period, i.e. 31st December 2020, but I think this has been confused by BoJo's fanfare of "Brexit Day" being 31st January 2020.

That said, it appears that these matters may still be open to interpretation - certainly in Spain.  I was reading a post on Fakebook this morning regarding the deadline of 31st January 2020 for UK citizens with Residencia in Spain to change their UK driving licences to Spanish.  Never taking these things at face value, I checked the DGT's own website and, sure enough, they are quoting the deadline for applications to change driving licences as 31st January 2020, not 31st December 2020 (and providing applications are submitted before 31st January 2020, the Spanish authorities will allow UK citizens up to a maximum of 9 months to obtain their Spanish licence, suggesting a final deadline of 31st October 2020, although that date isn't explicitly stated on their website):

http://www.dgt.es/es/seguridad-vial/paises-y-organizaciones-internacionales/union-europea/DGT-y-el-Brexit/index.shtml

I thought I'd double check by looking at the "Driving in Spain" section on the www.Gov.UK website and where it says, "If you are resident in Spain, exchange your UK licence for a Spanish one", but that link no longer works.

It would be interesting to compare the travel sections between www.Gov.UK and Spain's https://www.lamoncloa.gob.es/lang/en/brexit/Paginas/index.aspx to see if they match.  I haven't got time to do it now (I'm off to a Spanish lesson), but if anyone else has time, please would you update the forum.

So whilst the UK government states that nothing will change during the implementation period, it seems that if Spain's interpretation of the deadline for driving licence exchanges differs from the UK, Spain could also interpret and apply their own deadlines to any of the changes that Brexit will eventually bring.  In due course, Pauline, you may find that your cautious approach to Schengen requirements proves to be the correct one.  Another case of "watch this space" I think......

Kind regards,

Kim

Hi Jim,

Sorry I forgot that rather important piece of info.

I am 70 years old

Thanks

Jimmy

Hi Jimmy.

Personal allowance €6700.

Allowance for having earnings-related income (pension) €2000.

Earnings related allowance depends on how much income you have, and your income is a bit marginal, as it depends on the exchange rate, but you'd probably get the maximum of €5565.

Total €14265 tax free.

Also, if the local authority pension relates to 'crown' employment, then that would not be taxable in Spain anyway.

One important point - if you take up residence here before the end of a Brexit transition period, then your income qualifies you for residency. After Brexit, if the non-EU citizens' rules apply, you wouldn't qualify (and nor would the majority of us who are already here).

That's great Jim

That's one worry sorted.

Now all I need to do is Sell my House !!!

Jimmy

So, as I said, "Watch this space......" 😄

Hi Kim, thanks for reply, but after writing my query thinking we,d enjoy Spain in the mid summer months 2020 before Shengen 90 days apply, I then realised later it couldnt happen as we would have exceeded our 182 days to stay as UK tax residents.

Back to 2x90day stays, c'est la vie

Regards

Pauline.

ps  Merry Christmas.

You're very welcome, Pauline - better, I think, to err on the side of caution until we know for sure.

Felices fiestas! 🥳 🎉

Best wishes,

Kim

Pauline, I don't think you need to worry about that. Whilst you're an EU citizen your length of stay isn't monitored, so I can't envisage your being picked up for not applying for residency, or for becoming fiscally resident.

Thanks Jim, I know many have done it for years but with my luck, bad or even worse) .lol. We will await more info after January but may chance it this year before we start getting monitored. Had house now 13years but never been in Spain July or August.

Regards

Pauline.

Hi, I noted you said you were going to access your SIPP in around 4 yrs time: You should be aware of the potential consequences of doing this as a non-UK resident. Spain (and some other other EU counties, e.g. France), do not recognise tax free cash from UK private pension plans if you are a Spanish tax resident at the time of claiming your SIPP and they tax it as income when you declare it in your Spanish tax return. However personal circumstances will apply - E.G. if the pension came from a UK Gov pension (Civil Service, Police, Teachers, etc). If your tax advisers didn't mention this then I suggest you discuss this with a company who are expert in UK and Spanish taxation rules. I have been retired for a few years but I worked as a pensions and savings technician for several large UK insurance and banking companies.This definitely applied when I was still working but you should raise this with your tax advisers. 

Regards   

Doug