Hi - thinking of emigrating to Spain - Page 3

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Hi - thinking of emigrating to Spain - Page 3


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  #21 (permalink)  
Old 29th January 2020, 11:42 AM
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While i am on this subject it might be of interest to those persons seeking to move to Spain to live (or any EU country) with children post Brexit (actually I am not certain this has been negotiated as part of any agreement for those that live in Spain or move to Spain by end of transition period). If they live out of the UK they will not be allowed to return and take advantage of free state schooling or to be considered a home student for university purposes, it is little known that for example persons emigrating to Australia and later returning with children may not be allowed to enrol their children in a State school as a 'home ' child. University entrance would be on the basis of international paying (and therefore not eligible for the student allowances (which are minimal now) or the student loan scheme. international fees have to be paid up front usually. I know this from my own experience when my son was wanting to study in UK.
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Old 29th January 2020, 11:43 AM
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Quote:
Originally Posted by kaipa View Post
I dont think domicile has any bearing on residency.
actually they are not mutually exclusive

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Old 29th January 2020, 11:44 AM
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you can be domiciled and resident. You can be resident but not domiciled, you can be domiciled but not resident
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Old 29th January 2020, 11:47 AM
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Another example of all this relates to a Swedish friend who is resident in Spain. She doesnt work in spain but works in sweden during the summer months and then on and off during the year. She always tells me how careful she needs to be about it as if the Swedish authorities find she has worked in Sweden for over a certain number of days she is then liable for Swedish tax. Apparently they are super efficient about this even being able collect Spanish bank details. Anyway, if she overstayed she pays tax on income earned. If she sells any shares, or receives gifts of money etc then all that is taxed in spain even if the gift or sale happened during the time she was in Sweden even if she was there for over 183 days. So if she were to work in Sweden for 184 days tax would be on the income but if she sold her house capital gains would be declared in Spain as that is her primary place of residence

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Old 29th January 2020, 11:49 AM
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Paulhe: not sure how domicile relates to the issue of tax liability in spain?

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Old 29th January 2020, 11:57 AM
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Paulhe: you posted earlier about UK people returning with children to UK after living abroad. My understanding is ALL children have the right to education in UK irrespective of parents status. UK universities are ( England) no longer free and it might be the case that UK nationals require 3 year residency although EU students are eligible for free tuition in Scottish universities

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Old 29th January 2020, 12:01 PM
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Quote:
Originally Posted by kaipa View Post
Paulhe: not sure how domicile relates to the issue of tax liability in spain?
I am not sure whether Spain has a concept (legal concept ) of domiciled status. domicile is about intention . prior to 2017 there were certain domicile rules in uK re CGT . Rules changed. but the point is the rules for tax on residents is different to those for non - residents who are domiciled . these are common law rules in the main and as Spain is not a common law jurisdiction they may not have such a distinction

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Old 29th January 2020, 12:15 PM
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Quote:
Originally Posted by kaipa View Post
Paulhe: you posted earlier about UK people returning with children to UK after living abroad. My understanding is ALL children have the right to education in UK irrespective of parents status. UK universities are ( England) no longer free and it might be the case that UK nationals require 3 year residency although EU students are eligible for free tuition in Scottish universities

Kaipa

It may well be that UK returning school age children have a right to be enrolled not sure if for example that would apply to 16 +. We first came back in 2004 with a view to return and made enquiries in Norfolk to register , wasn't a problem if i recall but we went back and then my boy wanted to study at loughborough Uni as he was a promising middle/distance runner. he was told he had to apply as an international student. He would have had to return to uk live three years (not for the purpose of study) before qualifying as a home student.

yes, not free any more. Germany is the place, I know a young girl who is studying medicine and pays for accomodation only. A number of classes are in English (though she speaks German)!

Paul


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Old 29th January 2020, 12:29 PM
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Quote:
Originally Posted by kaipa View Post
Lakif: Hello. If you register as resident in spain then you are officially identifying spain as your home base. You cant then spend 183 days in UK every year so as to avoid paying spanish tax. You cant be resident in two countries at the same time. If you phoned the spanish tax man and told him you had just taken spanish residency but intend to spend the majority of the year in the UK because it is financially more advantageous he is not going to be too happy
Thanks for that, but the distinction here is that the topic of conversation earlier was surrounding retrospective Spanish CGT on UK assets, not the tax Spain is likely to levy on an ongoing basis once considered tax resident there. There will be no attempt to jig the system to my benefit.

There is also a difference, as far as I understand it, between ďtakingĒ Spanish residency, implying an application for a civil residence certificate, and being deemed fiscally resident, as I was enquiring about earlier.

Using an example of a UK property sale taking place in March 2020 and being conducted by an individual resident in the UK for the full tax year, being the UK tax year 2019-2020, Iím finding it difficult to understand the basis for the Spanish authorities being able to levy any tax on the proceeds, even if that individual then makes Spain their home, so long as they spend less than 183 days in Spain for calendar year 2020. In that scenario, the UK considers you tax resident for the tax year 2019-2020, as youíve been present in the country throughout the financial year, so any tax which might be owing on a disposal taking place in that financial year is paid to the UK. What happens for those months between the end of the UK tax year and the date of application for Spanish residency is unknown to me, but because the sale took place in the UK tax year, there should be no CGT to pay in Spain, as I see it.

Being that this could potentially affect me greatly in a financial sense, I plan to take some official advice when the time comes to make the move. I just didnít want anyone reading the thread to be misinformed, as some points made contradict what Iíve read elsewhere.

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  #30 (permalink)  
Old 29th January 2020, 12:43 PM
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The way I see it is : If you sell your property in UK in March and then come to Spain in July , for example, you would then probably not have to declare the CGT in spain. HOWEVER if you register for residency either before March or let's say even June then you would be indicating that your financial place of interest is spain and therefore POSSIBLY be liable for tax for 2020 tax year.
Basically as soon as you take residency you will be expected ( and automatically reminded) of the need for a tax declaration. Most people are registered with lawyers who come April/May contact their resident clients and remind them to book appointments to do tax returns

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