Quote:
Originally Posted by Stravinsky
Oh sorry, I read so many posts I missed that 
Regret to inform though that after you have been living here for 6 months you will become a Spanish Tax resident and will be liable for taxes here in Spain, not in the UK. Offshore, UK, wherever ... it does not matter. Your taxes will have to be paid in your country of residence, i.e. Spain.
That will include
Income tax: On any income from investments, rents, bonds etc etc
Wealth tax: On your worldwide assets
There are stiff fines for non payment
You can, if you wish, continue paying in the UK but when the Spanish catch up with you (they are actually working with the UK authorities now on this, and actually have exchange staff in each country) they will want their two penneth also .... you wont have to pay twice as there is a reciprocal arrangement, but you may have to pay twice and then reclaim.
It can actually be beneficial to be a tax resident here, especially now the 10p tax rate has gone. |
OK, so if we buy a Spanish property through a UK Ltd Co and live in it there will be no individual wealth tax charge and it won't be included in our Worldwide Wealth. Also no Spanish IHT liability or death duties.
State and private pensions can be taxed in the UK and offshore bonds have a 20 years, 5% p/a tax-free withdrawal of capital option. The only way the authorities could get to know is if you encashed the bond and were issued with a 'Chargeable Event Certificate'.
If someone is living in Spain on a pension and not doing undeclared work they should have nothing to worry about. It's impossible to tell how long someone has been in the country since they stopped stamping passports.
We will pay VAT on practically everything that we buy so why would the Spanish authorities concern themselves with us if we are law abiding? There is absolutely nothing wrong with opening a Spanish bank account, I would think that we need one.