Help needed guys

[crookesey]

My wife and I are 99% certain that we want to make a permanent move to the La Fustera/Moraira area of the Costa Blanca. We have known the area for nearly 30 years and are very comfortable with it.

We are interested in a villa with a pool and gardens no more than 3 kilometres from the coast with a serarate apartment that we could perhaps try our hand at letting or use to house visitors. We are both in our early 60's and don't see work as being an issue. We have discounted apartments and smaller properties with little outside space as we wish the looking after our home to be our main activity.

We don't care for the Spanish IHT rules so have considered purchasing through a UK Ltd company. We have one grown up son who will inherit our estate so this action would also negate Spanish death duties. We know people who have done this and it appears to be the belt and braces approach to buying in Spain. We would remain UK domiciled with a c/o address (our sons comes to mind), keep a UK bank account and utilise our UK tax allowances.

So there are our ideas, you guys who have made the move will know far more than us about any possible pitfalls in our ideas, your comments would be much appreciated. Also the strength of the Euro against the pound has seen our budget reduce by around £40,000, is it resonable to expect sellers to take this in mind when they price their property? We have started our search through a 'buying direct from the owner' web site and have found the sellers to be very friendly and helpful. This is in total contrast to the agents, many have property on their books that doesn't even exist, want large reservation deposits, 28 days completion and constanly waffle on about the 'black money'.

So there we are, over to you guys.

[Stravinsky]

Originally Posted by crookesey

My wife and I are 99% certain that we want to make a permanent move to the La Fustera/Moraira area of the Costa Blanca. We have known the area for nearly 30 years and are very comfortable with it.

We are interested in a villa with a pool and gardens no more than 3 kilometres from the coast with a serarate apartment that we could perhaps try our hand at letting or use to house visitors. We are both in our early 60's and don't see work as being an issue. We have discounted apartments and smaller properties with little outside space as we wish the looking after our home to be our main activity.

We don't care for the Spanish IHT rules so have considered purchasing through a UK Ltd company. We have one grown up son who will inherit our estate so this action would also negate Spanish death duties. We know people who have done this and it appears to be the belt and braces approach to buying in Spain. We would remain UK domiciled with a c/o address (our sons comes to mind), keep a UK bank account and utilise our UK tax allowances.

So there are our ideas, you guys who have made the move will know far more than us about any possible pitfalls in our ideas, your comments would be much appreciated. Also the strength of the Euro against the pound has seen our budget reduce by around £40,000, is it resonable to expect sellers to take this in mind when they price their property? We have started our search through a 'buying direct from the owner' web site and have found the sellers to be very friendly and helpful. This is in total contrast to the agents, many have property on their books that doesn't even exist, want large reservation deposits, 28 days completion and constanly waffle on about the 'black money'.

So there we are, over to you guys.

Well ...... I saw your other post and I can tell you for sure that after you have been here for 183 days you WILL be a Spanish tax resident. The Spanish & UK authorities are working closely together now, and even have people in each others offices. It is now a requirement in Spain that you register as a resident here within 60 days of arrival with intent. This is there way of keeping control. You won't be UK domiciled, and you wont have access to the UK Health service any more. You will have full access to the Spanish system though on production of an E121 that you get from DWP Newcastle.

I don't know your circumstances, but by de registering for tax in the UK and being taxed here, we are better off. I didn't pay any tax last year.

So .... they will know you are here. In Valencia local laws in relation to IHT are slightly different to the rest of Spain. For instance when one spouse passes, the IHT to the survivor is next to nothing. I have heard of the Ltd Company approach you mentioned, and I also heard of complications regarding Coproration tax, accounts etc etc. But good luck to you, I was told by someone they were quoted about £4k to set it up.