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Discussion Starter · #1 ·
We are UK residents who have a property in Spain that we use for the summer and are tax domiciled in the UK and intend to remain that way for the foreseable future. As we return to UK every October with long faces to face the British winter, I am looking into alternative solutions to stay in the "Sun" for a bit longer. I and my wife can work from anywhere via a computer link so do not need to return to the UK for work purposes. Can anyone please advise if there are limitations on the time we could stay in Portugal without attracting the need for resident status? We would be looking at a long term rental for between 6-8 months, and also we have a new Spanish car, again, are there issues with having it in Portugal without having to re-plate it? Replies and info would be most appreciated.
 

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It's the UK end you need to consider if you wish to retain your UK Residence status which means you must reside in UK for at least 6 months per year. UK Tax Residence has slightly different criteria

The maximum you can stay in any EU country (apart from your country of Residence) is 3 months, once over that time you are supposed to Register your Residence in that country, which means you lose your previous countries Residence Status, you cannot be a Resident of two countries at one time but could be considered Tax Residents of two countries.

So your maximum stay/s in Spain or Portugal should not be longer than 3 months

No doubt the Spanish tax man has a similar clause on tax status which for Portugal is you could also be considered a Tax Resident if

Stays here more than 183 days, with or without interruption; in any 12 month period

Having stayed there for less than 183 days, has at his own disposal on 31st
December of that year a dwelling place in such conditions that it may be inferred that there is the intention to keep and occupy it as an habitual abode;


Re your Spanish plated car it's no different to any non Portuguese registered vehicle you can only use it in Portugal for a max of 183 days in any 12 month period and only a Resident can replate, matriculate a car not a Non Resident
 

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Discussion Starter · #3 ·
I didn't know about the 6 months part for UK residence, that isn't good then. I know many, many people who are the same as me, stay for about 5 months in Spain, then return to UK for the Winter so that exceeds the 3 months part that you mentioned? I thought that as long as I paid taxes to the UK, but stayed in Spain less than 183 days I was ok? Wasn't aware of the need to be in the UK for the 6 months tho. What about holidays after the time I come back to the UK, ie, Tenerife in Jan, States in May?
 

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This is all EU law so applies equally to every EU country, yes you like me know lots of people who ignore by design or ignorance just thinking that there are no restrictions, the trouble is countries are becoming less lenient or turning a blind eye so it's an individuals choice but there can be repercussions.

The UK I'm afraid has no clear statement on Residence it's just referred to in many areas like Health, Benefits etc
HMRC though are currently refining Tax Residency into a non ambiguous statement and set of rules HM Revenue & Customs: How 'residence' and 'domicile' affect your UK tax
 
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