Spain = TAX CGT PLUS TRANSITION PERIOD

Hi Rob, We are hoping to do the same so thanks for starting this thread I will be watching any replies with interest.

Kush

I assume you already seen them, but if not:

Jim's guides - your complete guide to Spain

Look especially at anything to do with residency, pre and post Brexit.

We have owned a home in Campoverde for 9years, absolutely love it, and spend a lot of time there, mainly in the winter.  We don’t let it out when we’re not there as consider it our home.  We have great neighbours, all a bit older than us, who are residents but are aware that as our neighbours age that the pull to go back to the UK may be stronger if one, usually the woman, is left on their own. Many have been in Spain for over 15years and may or may not make a profit on their homes, depending on whether they bought “on a high”.

As regards selling, when we inevitably will as it will be either too much of a myther to keep coming back, particularly if just one of us, we’re probably a bit philosophical.  We bought originally on Orihuela Costa before discovering Campoverde.  Our original investment into Spain some 16years ago was approx £100k.  If we come out with anything near that figure after 16years of extended holidays, some home exchangesand the chance to meet great friends, it’s been money well spent.  The days of making a profit in Spain are long gone but renting would have been much more expensive for everyone.

Hi, don't forget as NON EU citizens after Brexit, you will have to have a proven income of approx €2400.00 for the first person then approx €500.00 per relative per month thereafter.

This has ruined our plans 😭

Not quite sure what you mean as we don’t intend to become residents and even if the visa rules come into play we’d be ok with that.  As for being a non Eu resident, I have an Irish passport(long story!) although my husband doesn’t and think this may complicate issues slightly!  

I think that most ex pats who are legal residents are more concerned if their state pensions will be frozen, as per those who emigrated to Australia. The annual heating allowance is no longer given.   Also, given the poor exchange rate, day to day living expenses are becoming more expensive-some of us don’t drink much wine so cheaper alcoholic drinks aren’t an advantage.  

Unfortunately for those selling to move back to UK, no matter how much they originally paid and depending on where they’re moving back to, the sale of their Spanish property most certainly won’t fund similar in UK which is maybe why, given that the exchange rate is in the sellers favour, they are making the move now rather than waiting to see how things pan out.

Moving permanently to another country is a huge decision and lots of things have to be considered, incl health care so I wish the house hunters all the best and doubt very much if they’ll find a nicer, more friendly and convenient place to live in than Campoverde.

The answer has to be yes doesn't it? You seem to be in the same boat as us in that how much is enough?

Firstly the Spanish tax year runs from 1st Jan to 31st Dec - if you sell your UK house next year and take up Spanish residency in the same year you sell your house you would likely have to pay CGT. Have a look into that for starters if you have been in your UK house for many years of appreciation. 

Moving over to Spain before the end of the transition period, end of 2020 if we actually leave at end of Jan 19, I doubt things will have "formalised" sufficiently into the next state for UK migrants.

If you can it would be prudent to demonstrate a monthly remittance to your Spanish account equal to the EUR 32k for a husband and spouse required for 3rd country residency seekers. If things stay as they are in that the residency applications are undertaken at police stations then they will likely just want to see money in and health insurance. One firm of advisors advised that I might need EUR 40k in cash and demonstrate the equivalent of EUR 32k paid in monthly but they also said it's up in the air at the moment.

If things change and residency vetting is undertaken at the Spanish consulates in the UK it might be a simpler process and a better option given you get a green light before you move over rather than move over before getting that green light.

5 X EUR 32K = EUR 160K or GBP 137K at today's approximate rates - if you have more than this you should be fine :)

My own approach is to plan never to have less than EUR 32K held in my Spanish bank account and demonstrate EUR 32k/12 going into it on a monthly basis.

I'll be 51 when/ if we move over very late next year and, as I have no salary and everything is self financed, if the Spanish want me to have a job or pension I am snookered :) I suspect and hope they will simply want to see evidence of balances and monthly remittances.

Who really knows at this time?

First of all read JIMS  GUIDE on this forum carefully

 I am in the same position as you, but I will only have £100K to find a property , plus an income of approx. 1200 /month

So whatever happens post BREXIT/ ELECTION,  will have a very significant affect on my plans. !!

From what I gather, from extensive  research,  (and if I'm wrong , I'm sure someone will correct me ),

Depending on the outcome of the brexit negotiations

Even if I was in a position ( POST BREXIT ) to purchase a house for say, £300 K, I will STILL need to provide proof of an income of around 2500 per month., ( 30Kof which 5k will be tax !!! )

My own personal position is to wait until we know EXACTLEY what the situation between our countries are,  as NO-ONE knows at the moment

IVe got an appointment with a lawyer in December, which I was hoping was going to get me NIE application ball rolling,

But now I don't know if its worth it or not ,given I possibly wont meet the  income requirments.

JIMMY

Ref finances, from my guide to the long-term visa:

'Foreigners wishing to reside in Spain without performing work or gainful activity must have sufficient financial means for the period of residence they request, or prove a source of periodic receipt of income, for themselves ... in the following amounts, which are established as a minimum and referred to at the time of application for the visa ...:

For his support, during his residence in Spain, an amount representing monthly in Euros 400% of the IPREM, or its legal equivalent in foreign currency.

The availability of sufficient financial means will be proved by submitting documentation that allows the verification of periodic and sufficient income or the possession of wealth that guarantees this income.

The availability can be accredited by any means of proof admitted by law, including property titles, certified cheques, or credit cards - which must be accompanied by a bank certification that proves the amount available as credit on the aforementioned card.

As written, the above means that capital instead of income can meet the requirements.

Ref tax, once you're fiscally resident here then you pay income tax here.

You can avoid potential problems with CGT on sale of the UK property if you move here in the second half of the year, so any CGT tax liability is wholly in the UK because you're not fiscally resident here for that year.