Fantasy - Moving to Spain - Wealth tax?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Fantasy - Moving to Spain - Wealth tax?

    This is probably a fantasy post.

    I always had my eye on Spain. I feel comfortable in Spain. I liked the idea of say living in Spain for 6 months, during the winter. Spain would be too hot for me in the Summer.

    Thanks to Brexit. We don't have freedom of movement. I cant move there beyond 3 months (as tourist).

    Even if I can someone get permission to live in there for longer then 3 months. Spain has a wealth tax. They would tax me on the value of UK properties. Both Spain and Portugal have wealth tax. Even if UK rental income is not being sent to Spain, there are tax implications.

    Also, I can't up and leave, as I am a responsible landlord. I am a hands-on landlords. I do have agents, but I can't really rely on them. I would get frustrated, if there are situations which need my attention, but I can't visit the property. Although, I would much rather then a peaceful life, with no phone calls with tenant problems.

    In theory, I would have to sell up, but I am too young to retire. I could start a business but Spain is wonderful with various pitfalls..... I can't sit by the beach. That is n't me. I do like to wander / explore etc....

    Anyone else faced the same dilemma? How are people position life outside the UK?



    #2
    I’m currently in a tax sweet spot as a temporary resident in Australia. HMRC don’t care about money I earn in Australia and the ATO don’t care about money I earn in the UK. If I go for permanent residency that sweet spot disappears. I’ve for a tax adviser who understands both tax systems who can help me get my affairs in order before losing that sweet spot. If you’re serious about Spain I’d recommend finding someone who understands both systems as you might be able to do something like splitting your time almost 50/50 between the two countries but with 3 weeks elsewhere to keep you under 183 days in either Spain or the UK.

    Portugal was somewhere I was thinking about retiring before Brexit and the Australian opportunity came up. After Brexit some investigating found Portugal one of the easiest EU countries to obtain citizenship and therefore an EU passport so is something I might look at again in the future. I don’t think Portugal’s wealth tax is as Spain’s but don’t quote me on that.

    Having had my fingers burnt twice (a 100% record) as an overseas landlord I wouldn’t do it again. That said Spain is a bit closer to the UK than Australia.

    Comment


      #3
      Originally posted by Flashback1966 View Post
      I am a hands-on landlords. I do have agents, but I can't really rely on them. I would get frustrated, if there are situations which need my attention
      Same here. I used to take the view 'why have a dog and bark yourself?'. But I find that all too often if you don't bark, nobody does.

      A potential solution of sorts is to switch from residential to commercial but there are transaction cost and CGT implications.
      There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

      Comment


        #4
        Originally posted by Flashback1966 View Post
        This is probably a fantasy post.

        I always had my eye on Spain. I feel comfortable in Spain. I liked the idea of say living in Spain for 6 months, during the winter. Spain would be too hot for me in the Summer.

        Thanks to Brexit. We don't have freedom of movement. I cant move there beyond 3 months (as tourist).

        Even if I can someone get permission to live in there for longer then 3 months. Spain has a wealth tax. They would tax me on the value of UK properties.

        Get a 6 months Schengen area visa. You can then travel freely for that period.

        I don't know specifically about Spain but I can get a 6 months visa in the Schengen country of my choice for around 100 euros.

        No tax complications.

        Incidentally, I reckon they're just using it as a political bargaining chip and it'll all be sorted out in a couple of years. Something like the Swiss have negotiated. Why wouldn't you want self supporting, high net wealth visitors spending their cash in your country?

        Comment


          #5
          Originally posted by boletus View Post
          . Why wouldn't you want self supporting, high net wealth visitors spending their cash in your country?
          er, because they're a complete burden on a health system they've never contributed to ?

          Comment


            #6
            Originally posted by Section20z View Post

            er, because they're a complete burden on a health system they've never contributed to ?
            er, as said, self supporting.

            Comment


              #7
              OP should study the minimum period for Spanish taxes . If your stay in Spain is less than 183 days in any one year , you are not subject to spanish tax on you total income. You only pay 24%| on your rental income from spanish property.

              Spanish Wealth tax applies if your total assets is over 700,000 euros. So stay below 700K .

              Comment


                #8
                Originally posted by boletus View Post

                Why wouldn't you want self supporting, high net wealth visitors spending their cash in your country?
                Er, because we have to be punished for Brexit.

                Buy a motorhome or a yacht, 3 months in Spain, 3 months in Morocco (or Gibraltar).

                Comment

                Latest Activity

                Collapse

                • Reply to Is it an allowable expense or capital expense
                  by AndrewDod
                  Can't see any reason this would be an insured event. Agree it is not a capital expense at all....
                  25-05-2022, 09:25 AM
                • Reply to Is it an allowable expense or capital expense
                  by Another Fine Mess
                  If you dont mind me suggesting, If your Insurance Company is rejecting your claim you could get in touch with a Chartered Loss Assessor who would argue with the Insurance Company Loss Adjuster, its worth a phone call to one.
                  24-05-2022, 16:30 PM
                • Is it an allowable expense or capital expense
                  by shipboard
                  I rent out a single property, during the winter storms the brickwork was damaged and the cheapest option to repair it was to render the Gable end and rear of the property. I tried to claim on the insurance but they maintained it was due to wear and tear, I am of course disputing this. My question is...
                  24-05-2022, 10:04 AM
                • Reply to Is it an allowable expense or capital expense
                  by gnvqsos
                  I think the insurance company were right-the render must have been distressed to suffer storm damage. You can offset cost against income.
                  24-05-2022, 14:36 PM
                • Reply to CGT query
                  by Gordon999
                  Hmrc rules allow transfers between spouses without cgt. The recipient spouse takes on the asset at the original purchase price.
                  24-05-2022, 11:16 AM
                • Reply to Is it an allowable expense or capital expense
                  by Gordon999
                  I agree with jpk : it is a maintenance expense which is claimed against rental income....
                  24-05-2022, 11:12 AM
                • Reply to Is it an allowable expense or capital expense
                  by jpkeates
                  I'd say that's a maintenance cost and would be allowed against income.
                  It would affect the value of the property, but only to restore it to the level that it was at prior to the damage (plus the general positive effect of any large maintenance work).
                  24-05-2022, 10:53 AM
                • CGT query
                  by vik238754
                  Hello. Since 2013 my wife and I own a property as tenants in common where the beneficial interest split is 90% her and 10% me. We are now looking to sell the property. I have a large CGT loss and using the HMRC CGT calculator I have calculated that if I change the split to 70% me and 30% my wife...
                  23-05-2022, 19:37 PM
                • Reply to CGT query
                  by jpkeates
                  What you are planning to do is routine and HMRC will accept the change as a matter of routine admin.
                  24-05-2022, 09:13 AM
                • Any property tax experts you can recommend please?
                  by mpppen
                  Hello,
                  We have a small BTL portolio of five properties. Some are in our personal names and the latter ones in a property company we set up a few years' ago when the tax rules changed.

                  I'd really like to find someone who can advise us of the best way of either bringing the personal...
                  03-03-2022, 20:00 PM
                Working...
                X