retirement in spain - Page 2

My original tax question was because to be resident i would need a larger income than pre bexit .I also would be retiring early so no UK pension and  would need to support us from my private pension/Isa which is not a problem. I would not be happy paying around 5000 euros a tax out of  this .I think that i will have to wait and  see as i may be better off doing a 50/50 split staying a UK resident on a lower income with no tax  and free health care and use the tax saving to go somewhere not in the EU in the other 6 months until we reach pension age. I then will have my UK pension to help pay my Spanish tax bill as a resident plus the health care might be free 

Hi Richard have you estimated/ worked out how much you might spend in Spain, money wise, if you were retired?

I am thinking around 1500/2000 euros a month made up of pension and topped up from my uk isa if needed 

I would also keep my property in uk as a fall back  ie health problems 

plus somewhere for my son to live

Okay so there is a divergence between the EUR 32k pa and what you think you might need to spend to live. 

All I would say is that currently, I'm looking to move out in July this year, I'm being advised to maintain a deposit in my Spanish bank account of EUR 14k for my wife and myself to apply for residency. This money should be on deposit for 3+ months prior to the residency application. We have no income just investments and cash holdings.

It's plausible that, next year, if you maintain a deposit equal to or greater than EUR 32k, for you and your wife, and top it up to service your spending - that you would pass the residency conditions. The tax on 1500 to 2000 euros a month is a lot less than EUR 2600+ a month.

FYI I have estimated a core spend on regular known costs; food and drink, insurances, utilities, haircuts, council tax, urb fees, etc - basically all the stuff you know which goes out every month at set levels - at around EUR 1380 pm. I've budgeted for another EUR 980 pm for eating out, car repairs, home repairs, holidays etc. but I expect/ hope much of this will remain unspent. We would own our home in Spain so no direct housing costs such as rent/ mortgage.

I'm only just starting to actually go through the process, so only now engaging with relocation experts, solicitors, will makers and tax planners etc., after planning for a year or two, so those on here with deeper experiences should be listened to, but I have based my thinking above on much of what has been socialised on here (Jim guides) and ad hoc exchanges.

A good, thoughtful, and logical approach.

There's one possible fly in the ointment re residencia next year, and that is because the applicable law refers to a regular monthly income of 4 x IPREM, or assets capable of providing that level of income. As the initial TIE is issued for one year, then a worst case scenario is that you could be asked to show a bank balance of 48 x IPREM. If that proved to be the case, then it would be less strain on your resources to make three monthly transfers of 4 x IPREM into your bank account here.

I very much doubt that 48 x IPREM will be the case, but I also very much doubt that we'll learn what criteria the national police will be applying until it actually starts to happen.

In fact, the national police criteria will, subject to Boris and negotiations, possibly only be applicable to those of us who already have residency certificates, and everyone else will have to first apply for a long-term residency visa at a consulate in the UK. If that proves to be the case, then I would expect the consulates to work to the letter of the law, and not be subject to the requirements that the national police consider to be required.

To paraphrase the old Chinese curse - we live in interesting times.

Jim as and when we apply for residency in July this year - how long is the initial period granted?

Do you know the "as is" schedule for follow up checks?

thanks

A residency certificate issued under the present rules doesn't have a duration tagged to it. And we're still waiting for Spain to publish the detail as to how we transfer such a residency certificate to a new category of residencia card (TIE) issued under the terms of the withdrawal agreement.

It is only when the non-EU citizen rules come into play that a duration is stated. Initially one year, then a further two, then a further two, after which you get a permanent residencia card which doesn't need renewal.

Those of us who have already been resident here for five years should be able to transfer direct to a permanent residencia card. No help to yourself, but I'm looking forward to when the transfer procedure is published.

Not related to your question, but I'm hoping at some point to do a post with the title 'Jim's wearing a TIE', showing a picture of my ugly mug and a residencia card strung around my neck - but I think that Ray might beat me to it.

So in principle even mine if I get it should be a once only grant. I should have looked here first at your guide: https://www.costablancaforum.com/area/almorad%C3%AD-spain-11/residency-in-almorad%C3%AD-padron-residencia-passport-advice-23/jims-guide-the-residency-certificate-43535/ 

Even if Ray does post his pic first I won't see it as he is on my blocked list. 

Thanks again.

You may well have already seen them, but if not also look at:

https://www.costablancaforum.com/area/almorad%C3%AD-spain-11/residency-in-almorad%C3%AD-padron-residencia-passport-advice-23/jims-guide-moving-to-spain-and-residencia-for-non-eu-citizens-46065/

https://www.costablancaforum.com/area/almorad%C3%AD-spain-11/residency-in-almorad%C3%AD-padron-residencia-passport-advice-23/jims-guide-post-brexit-entry-visa-requirements-to-take-up-residency-in-spain-48826/

Jim this has now prompted another question from me, and I apolgise if I admit I havent read every guide you have produced. Unlike yourself who hopes to go direct onto a permanent TIE due to long duration of residency, if a person who has only just become resident prior to Jan 2021 then applies for a TIE, is that only granted for a year with 2 further renewals until 5 years have passed, and will that person be subject to the higher income requirements of post Brexit or the lower EU income requirements as they originally fulfilled on first obtaining residency.?

I assume the answer to be income as per pre-Brexit requirements as many would not qualify under the new rules but just need confirmation. I had,nt paid much attention to the ongoing requirements of obtaining TIE,s after transition period.

Highest regards again

Pauline