The benefits of living in Spain
There have been so many changes to the various tax and benefit regulations throughout Europe that many people who go to a foreign land are totally unaware of what they can and cannot claim in benefits and in many cases the taxation situation. Despite the fact that the European Union has a principal at the centre which “ensures all EU residents are treated the same in any EU state” this does not appear to be happening in places such as Spain.
While it may be a little unfair to single out Spain as a potential problem area, the fact that it is so popular with UK expats is the reason why it is often in the headlines. So where exactly do you stand regarding child benefit, health care and benefits in general?
Background to the thread
The thread has been started by somebody who lives in Spain but is originally from the UK. The lady’s husband is working in the UK, paying UK taxes and spending no more than 180 days a year in Spain. The lady and her children are resident in Spain and there is a debate as to whether they are able to claim child benefit, bereavement benefits, health care benefits and a pension from the UK authorities.
Confusion, confusion, confusion
One thing which will hit you as soon as you start to read a thread will be the differing advice, different place to visit for advice and ultimately different opinions. The situation has become so confused because at the highest level the EU has promised all EU citizens they that will be treated the same in any EU member state as they would in their original homeland. However, when you delve down into countries such as Spain the situation is far from straightforward and there are many obstacles and hurdles to jump over.
Working in the UK, paying UK taxes
Ultimately it looks as though anybody who works in the UK, pays UK taxes and is for all intents and purposes resident in the UK is entitled to child benefit (even though their children may be living overseas) and their spouses are also able to claim pensions and bereavement benefits at the appropriate time. However, a number of posters have been in contact with the likes of the Department Works and Pensions and various other advisory authorities to clarify the situation.
It would appear, from the feedback a number of posters have relayed, that the various UK authorities were making “as difficult as possible” for you to claim your rightful benefits. Whether this is the case, or not, there is no doubt that some expats are having difficulty getting straight answers from the authorities and actually receiving payments such as child benefit as well as healthcare cover.
Why is Spain different?
Those who read the financial press will be aware that a group of expat pensioners now living in Spain are taking the UK government to court in relation to inflation linked pension payments. The UK authorities have refused point blank to increase tension payments for expats as they do for pensioners resident in the UK. This effectively means that whenever an expat begins to claim their pension payments from the UK (assuming there taxation records are in order, etc) the payment figure is frozen from day one. So why has the UK government refused to link expat pensions to inflation?
While the issue is set to go to court this year the argument from the UK government is the fact that Spanish authorities do not undertake a similar exercise for Spanish expats and because the situation is not reciprocal on both sides (i.e. Spain and the UK) the UK government is refusing to increase payments. This is just an example of problems where assumed reciprocal situations are not in place, as yet, and people are suffering financial loss.
Child benefit
It would appear the bottom line is, if either mother or father are working in the UK and paying UK tax then they are able to claim child benefit, no matter where their child or children may live. The situation regarding Polish children and Polish immigrant workers is one which often comes to the fore with many Polish workers claiming child benefit for their children back in Poland and sending the money “back home”.
However, there is a proviso that each situation is different and your individual circumstances may need to be addressed before a final decision can be made by the authorities. In effect this is the government’s get out clause which can catch certain people in certain circumstances.
Healthcare overseas
This is another issue which has caught the eye of many as health care in the UK is free to residents via the NHS although there are no such services in places such as Spain. However, by applying to the UK government for a specific healthcare form it looks as though it is possible to gain cover in places such as Spain on the back of taxes paid in the UK.
In theory this sounds very simple but in practice it may not be as easy!
Is the EU really one state or a number of sub states?
While the politicians will have you believe that Europe is not one super-state, the fact is that laws are coming together, regulators are merging and many new regulations are being released from the EU parliament. However, it appears that when it is up to each individual country they do not always abide by the terms of the various EU agreements and many expats will literally be owed money that they may not be aware of.
Conclusion
The authorities around Europe appear to have done their best to muddy the waters regarding a common EU benefits system to such an extent that misinformation is commonplace and even official advisers appear to be “getting it wrong”. The truth is that it may well take some time to obtain access to benefits to which you are entitled but ultimately if you pay your taxes and work within the EU you should be able to claim some form of benefit in your new homeland, whether via your original government or your new government.
It is evident from the thread that unless you are determined to obtain what is “rightfully yours” you may well fall by the wayside and add to the literally millions upon millions of pounds of unclaimed benefits which is growing each and every year. The Internet is a perfect starting place for your investigations although ultimately it may take phone calls and written correspondence before you are unable to claim a success. If you give-up early, or have no staying power then the chances are you will lose out financially through no fault of your own.
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