Residency Certificates for EU residents

[Stravinsky]

Originally Posted by mrypg9

Our accountant tells us that reciprocal agreements mean that you are taxed in one country only. In our case that will be the UK. Same situation as here in the Czech Republic.
10p tax rate won't make any appreciable difference!
This board is very useful - the information given is much appreciated.
We want to rent long-term, for at least five years until a family property will be available for us. You need a vivienda - is that right?
How common are rental properties with a five-year vivienda?

Yes you are taxed in one country only under the reciprocal agreements, but it is your country of residence. If you live and reside in Spain you will be liable for tax in Spain. You can go ahead and happily pay your tax in the UK if you like, but when the Spanish tax man catches up with you he will want his pound of flesh also.

[Stravinsky]

Originally Posted by mrypg9

I'm not bothered who the property is owned by!! But I don't want to be calling Allied Pickfords every other year.
We're looking in the Marbella area - loads of nice country houses on 'long term' rental basis.
Just wondering how long term that is......

Normally 11 months, although its on a renewable basis.

[crookesey]

It seems strange that all manner of EU citizens can come to the UK, claim child allowance for kids back home but dont have to apply for a UK residence permit and waive their rights to things such as healthcare, tax allowances etc in their own country.

Why is Spain so different in its approach to its fellow EU brothers and sisters?

[mrypg9]

Originally Posted by Stravinsky

Yes you are taxed in one country only under the reciprocal agreements, but it is your country of residence. If you live and reside in Spain you will be liable for tax in Spain. You can go ahead and happily pay your tax in the UK if you like, but when the Spanish tax man catches up with you he will want his pound of flesh also.

Not so. We have been resident outside the UK for several years with full knowledge of the Czech tax authorities and with residency permits. We pay UK tax and UK tax only on our income.
We could have chosen to be taxed in our current country of residence but stayed with the UK tax system. Reciprocal agreements on taxation of pension and investment incomes mean that you do not pay twice. That's why they exist.
We took professional advice as we obviously wanted the best financial arrangements.

[mrypg9]

Should have added to the above: these agreements exist, as far as I know, only in EU countries - maybe also Canada but I'm not sure.

[paulthegull]

what happens if your residency card is up for renewal? do u get just a slip of paper or a xard again?

[mrypg9]

If you have income from a source in one country and are resident in another, you may be liable to pay tax in both countries under their tax laws. To avoid 'double taxation' in this situation, the United Kingdom has negotiated double taxation ('DT') treaties with more than 100 other countries.


Pasted this from the HMCR Website.
Spain is one of the 100 countries.

[mrypg9]

Originally Posted by Stravinsky

Normally 11 months, although its on a renewable basis.

What about the 'vivienda'? Doesn't that allow for a five-year lease with the option of inflation-only yearly rent increases?
That's what the Real Estate agencies are telling us.
This is from HMCR :

I]Tax Treaties in force - Spain
UK/Spain Double Taxation Convention signed on 21 October 1975 as amended by an Exchange of Notes signed on 13 December 1993 / 17 June 1994

[mrypg9]

There are two types of rental contract in Spain. These are;par-temporada, a contract for short term letting ( or like a holiday letting contract) and Vivienda, a contract for long term letting ( which is more like the contract a buy to let landlord would use). The temporary contract covers most forms of holiday home rentals and anyone that wishes to occupy a property for up to a period of 12 months. The Vivenda will cover rental periods over 12 months. Short term lettings, like in most other countries offer very little protection to the tenant but rentals over 12 months in duration are subject to regulation by Spanish law.

That's what we're after, a long-term contract.
Otherwise we'd be better off buying, which we don't want to do as we have family property in Spain which will be available to us later.

[mrypg9]

Originally Posted by crookesey

It seems strange that all manner of EU citizens can come to the UK, claim child allowance for kids back home but dont have to apply for a UK residence permit and waive their rights to things such as healthcare, tax allowances etc in their own country.

Why is Spain so different in its approach to its fellow EU brothers and sisters?

Not so sure it is. EU citizens may - not must - apply for a residency permit when they move to another EU country. In practice, as we have found here, having such a permit makes life a lot easier when it comes to registering vehicles, getting a mobile phone contract and so on.
EU citizens working in the UK are obliged to register. After a qualifying period which I believe is one year of making the usual tax and NI payments they are entitled to benefits.
If I were working here I would be eligible for Czech social/welfare benefits but as this is a comparatively poor EU member state they would be negligeable compared to what a Pole or Latvian would receive in the UK.
There are a lot of myths and misconceptions about what economic migrants do and do not receive. What is scandalous is the high number of fraudulent claims for non-existent 'dependants' in the home country. Apparently there are thousands of such cases under investigation in East Anglia alone.