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3mnths or 6mnnths for non residency.?

Posted: Thu Mar 22, 2018 12:02pm
9 replies514 views6 members subscribed
paulsav

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I am confused after reading some posts where it has stated after 3 mnths one has to apply for residency when I thought one could stay for upto 183 days as a non resident before having to apply for residency. We have only used our property for 1mnth stays over past 12yrs but next year plan to increase this to 6mnths, but because we have had many nightmares with our property we have lost confidence that permanent residency would be a stressfree retirement. We are also confused regarding the tax we would pay as permanent residents. Having also read the tax allowance in Spain is 5500€ compared to UK £11500, does that really mean expats pay tax on 6000€ more which would be 1200€yr(at 20%)? That just doesnt seem correct .Why would anyone pay this much more just to live in the sun? Please can someone explain. Pauline.

paulsav

Posted: Thu Mar 22, 2018 12:46pm

paulsav

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Posted: Thu Mar 22, 2018 12:46pm

Thanks Pete, nice to know we,re considerred "aliens" lol, prefer "strangers", so now we need to know who and how to inform when we stay over 3mnths and does that mean every time we stay over 3mnths we have to do this? I always read Jim's posts as I know he,s so knowledgable but kept seeing the amount of 5500€ mentioned and although he has mentioned Spanish tax system is very complicated, couldnt understand how we could end up with a similar tax allowance to the UK.

paulsav

Posted: Mon Mar 26, 2018 1:01am

paulsav

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Posted: Mon Mar 26, 2018 1:01am

Thankyou, that I know, but my query is if we,re supposed to inform if we stay longer than 3mnths as Pete said, who do you inform and why, when one only needs to become a resident after 183 days? I also couldnt understand if 5500€ is the Spanish tax allowance compared to UK,s £11,500 why would anyone want to be a resident with such a large differrence.? We are trying to decide whether we would be worse off if we choose to permanently relocate.

jimtaylor

Posted: Mon Mar 26, 2018 4:56am

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Posted: Mon Mar 26, 2018 4:56am

I thought I'd posted a reply to this, but obviously not.

There's a difference between having a residencia certificate and being a fiscal resident. You're a fiscal resident if you spend 183 days or more a year in Spain, and are then liable to tax in Spain.

There's a lot more to the allowances system than just the personal allowance. I've spelled it all out here:

https://www.costablancaforum.com/area/la-marina-spain-72/taxes-suma-nie-tax-advice-in-la-marina-25/residents-income-tax-allowances-20054/

paulsav

Posted: Mon Mar 26, 2018 3:03pm

paulsav

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Posted: Mon Mar 26, 2018 3:03pm

Hello Jim

Thankyou for your reply, I either missed it first time of posting or read it but wasnt accepting that we would still consider relocating due to our lost confidence and therefore dismissed it, so I apologise for that and appreciate your taking the time to relay the info. It is very complex and I salute you for wading through the mire! I will have to try and decipher whether we would be better or worse off. People always claim the UK council tax is such a huge saving but it does seem to me that the saving could be easily swallowed up by the outgoings that wouldnt be applicable in the UK anyway. I do my own self assessment here, I definitely wouldnt do it there. 

I do appreciate your involvement

Kind regards

Pauline.

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paulsav

Posted: Wed Jan 23, 2019 5:54pm

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Posted: Wed Jan 23, 2019 5:54pm

I,m sorry I need to ask this but what do you mean as "earnings related income" as not many over 65s work let alone 70,s so can this be an allowance against a rental income and if 2 landlords and doing taxes individually instead of the joint return, do both get this allowance?Thankyou for all your invaluable information.

Regards

Pauline

Relyat

Posted: Wed Jan 23, 2019 7:07pm

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Posted: Wed Jan 23, 2019 7:07pm

Two points to bear in mind.

1) Registering on the list of foreigners is required after you have been in the country after 90 days, or at the beginning of your stay if you know or anticipate being in the country for over 90 days.

2) Neither the above, known as Residency or fiscal residency after 183 days are optional- you do not choose, they are legal requirements.

paulsav

Posted: Wed Jan 23, 2019 9:15pm

paulsav

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Posted: Wed Jan 23, 2019 9:15pm

Thank you Relyat, I am aware of your pointers, my previous post was to Jim after I read his posting again on tax allowances. Do you know what "earning related income"means? As pensioners we dont work but rent out a property so does it mean that, and as we are joint landlords,could we both have that allowance if we did individual tax returns.?

jimtaylor

Posted: Thu Jan 24, 2019 4:48am

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Golandrina

Posted: Thu Jan 24, 2019 6:11pm

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Posted: Thu Jan 24, 2019 6:11pm

paulsav wrote on Wed Jan 23, 2019 5:54pm:

I,m sorry I need to ask this but what do you mean as "earnings related income" as not many over 65s work let alone 70,s so can this be an allowance against a rental income and if 2 landlords and doing taxes individually instead of the joint return, do both get this allowance?Thankyou for all your...

... invaluable information.

Regards

Pauline

I am sure that Jim will put me right if I am wrong but I believe that pensions are classed as earnings related income.   One thing to be aware of though, pensions and annuities (some people do think of these as pensions) are taxed differently.

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