Originally Posted by crookesey

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.