[UK2Barcelona]

Hi. New members here

My wife has been told they would like her to relocate to Catalunya from the UK in a few months, and are currently working out a relocation package. So this is all a bit new to us. Theres also a baby in the mix (1 yr old). So we're panicking a little trying to get some basic knowledge ready for the impending package meeting next week. We just need to be confident in what theyre saying is best, and what we think they should be saying.:fingerscrossed:

So we'd be really greatful for any assistance to help us sift through the mountain of info about what is true or not as we go through it. A few really simple yays or nays & layman facts would be very helpful. Ive tried googling but Im going crosseyed trying to sift out the facts inbetween battling a 1 yr old from trying to choke the dog. We dont think there's any provision to return to the UK if it goes t*ts up. So its important to get clued up correctly to make the right decision.

The basics.
She is working (large int company with some offices in Spain). Im currently the house hubby. We have a 1 yr old and a dog. She earns £59k here. And while looking after the baby full time I earn a very small income (until the interest rates go back up!) from some rented out UK property. We'll rent initially there and Let out our house in the UK.

The concerns.
Too many to get answered in this post I think! Tax, Health, Education, Pension, will it be a new contract and therefore will she lose all her years spent with the company should there be any redundancies etc etc etc. Many of which Im hopeful will be answered by them at the meeting.

So we were going to see what was said next week, then decide. But we were a little worried by an email that came yesterday regarding the relocation meeting. It said something along the lines of "Due to the tax savings (in my wifes salary) We (the company) should be able to go ahead with the relocation despite reaching our budget cap for this year." Which basically sounds like they have no money left and shes going to be told there will be minimum financial assistance because shes going to be earning more when there. Obviously we dont want to be worse off in either finances or healthcare. So we thought we'd try and get a basic list of things to know.

So firstly. Any thoughts on her being taxed as a "Non Resident" Is the Royal Decree (Beckham tax ) that they are dangling to ease (fund) her move still valid. As some of the info online is a bit ropey. And is it worth it? When you take into account the initial tax free amount here follwed by an average of the staggered tax she pays currently, it cant that far off the beckham flat rate & their no initial tax free amount. Unless Im doing it wrong? lol. Is there a calculation we can do to give us a definitive answer as to what gets taken out and whats shes left with so we can compare?

Obv Im not eligible. And I think Im right that property rental income from the UK can only be taxed by the country its in. So what happens to me? Ive tried to make sense of the Married Tax relief, but its left me a bit confused. Do partners of non resi tax get bolted on somewhere?

As a house hubby (not paying in to Spanish system) of a non resi taxer. Am I right in saying I get no provision for healthcare? (and does she?) I have hyper tension and a kidney stone to contend with!

I think thats enough of an Essay to start with!

Any and all advice very greatfully received! Anything we can take to the meeting to fight to get into the relocation package over what were losing here is a bonus.

Many thanks.

M

 

[emeraldalp]

Catalunya

Well all I can say is you are lucky.
I have a summer house in Pals and from my experience on everthing you will love the area.

 

[elisa31bcn]

The only thing i can comment on is that if your wife is here under contract, paying into the Spanish system, then you are eligible for health care as her dependant.

 

[UK2Barcelona]

The only thing i can comment on is that if your wife is here under contract, paying into the Spanish system, then you are eligible for health care as her dependant.

Ok, well thanks for that bit of news. We'd read that if youre out of work you either still pay or you get nothing. So we werent sure if she was still paying into the Spanish Health System when paying non residents tax? I wonder if this also include the Spanish pension system (Where the employer has to also pay 25% of the salary in) when paying non resdients tax?

Cheers

 

[gus-lopez]

She can't be forced to relocate & therefore the years/benefits from UK should still count.You need to get this in writing as to who is paying the redundancy if it all goes pear shaped. i.e. it would be down to the Spanish arm to be paying redundancy but there is always the possibility that they will 'have no money' ; therefore I'd want it written in that in that eventuality the payments due would revert to the UK arm . & another position !!

I'd want them paying the rent for a defined period as well due to the fact that at the moment you are paying, I assume a mortgage, & will have the added expense of rent .Which isn't your problem as they want her to move.
You'll be classed as a resident as well & although paying tax on your rented properties in the UK you will also have to decalare here & it will be offset against any ( unlikely) Spanish tax. Additionally you'll have to declare for the '720' which is all assets with a value over 50k held outside of Spain. I.e. the rented houses , etc.

I think the 'Beckaham law' & being a non-resident would only apply if the transfer was for a fixed period but in your wife's case it would appear to be a permanent relocation . Therefore she & you , would be required to become residents after 90 days.