Residencia - Page 2

Hi there,

We are going through the process at the moment.

1. You need to be aware, if not already, that there are differences in the registration.

2. You are only 'fiscally register'able' if you reside for more than 183 days in a year - therefore making your home in Spain your permanent residence and therefore obliged to declare incomes etc ( which would include CGT) wherever earned.

We have sought the services of a couple of the 'advisers' but they seem to have conflicting advice and therefore we  have decided to let our solicitors in Spain advise us, prepare and collate all the necessary paperwork and then make the appointments for us. Their advise is to apply for the 'new' TIE and then, if we do stay for the majority of the year at our home in Camposol, to declare as mentioned.

You probably know that part of the application for residency is the 'padron'. And when applying for the 'padron', amongst all .the paperwork you will need, will be a tenancy agreement or your property deeds (escritura).

If you don't manage to get the application for 'TIE' in the system before 31/12/20, then, unless a miracle happens with Brexit terms, Spain will treat you exactly the same as someone from Canada, USA or anywhere else on this planet. The terms for residency will then be more severe in terms of income, investment, health cover etc. 

Hope this helps 

Thanks for the reply .. a question regarding the CGT if we sold before we apply for permanent residency what happens then . 2nd question, if we sell during the period of application of becoming residents would that still come under non resident .

Thank you 

Hi there,

My understanding from our solicitor is that we would only become a 'fiscal resident' on the 183rd day of  residing in Spain - just as at present we are a 'fiscal resident' in UK because we abide there for the majority of the year (over 183 days). I believe this is generally a universal application for fiscal liability. So it's up to ourselves to declare fiscal liability in Spain if & only when it becomes are main residency.

We are, as mentioned previously, going through the process of registering for the 'TIE' and only to declare for fiscal residence if we stay over the 183 days. Therefore, because we have property still in UK and will probably still live there for over 183 days, we will still be UK tax payers.

If our situation changes, or Boris and Dominic decide to declare separation from the rest of the world and backtrack on the current exit agreement, then ?????? who knows.

At present, our understanding is that all income(s) earned in UK or elsewhere (including CGT etc) is subject to whatever taxation regime there is in the country in which you abide for the majority of the year (183 day rule).

We pay our UK dues and also our local (IBI) taxes and non-resident taxes in Spain.

Time wise, if it helps, we applied for an appointment to do our 'padron' on 1st September and got the earliest one available for the 28th September. So I'd work on a minimum of 4 weeks for even that.

Hope this helps a little but, please, double check, as the information and requirements for us have changed 3 times over the last few months - hence using our solicitor. By the way, the cost of using our solicitor is only slightly more expensive than others quoted. 

Hope it helps

Good luck

You will get lots of info , just get in touch with Debbies translations, she is great, and will put you right with no messing about.

Hi,

We have been in contact with her and another and have still decided to follow our solicitors info.

Thanks anyway

Can I ask who are your solicitors please

Who do I need to contact regarding my Padron telephone number or email would be a great help 

Hi do you mean if you want to make an appointment with the town hall yourself for the padron instead of using a translator? If so the number is 968 590 012

Our solicitor is coral and alcaraz in the port and they sort out all our tax issues and are very good.

"we would only become a 'fiscal resident' on the 183rd day of  residing in Spain -"

The Spanish tax year runs from 1st January to 31st December. Once you have spent 183 days in Spain you are liable to pay tax for that whole tax year, not just the part from when you had been there that long.

Either a serious misunderstanding or sadly and more likely an incompetent solicitor. Check with the Agencia Tributaria, but be aware that each funcinario may give you a different answer...

Hi It all gets very complicated.

We were told by our accountant that as we had sold in the UK before we were residents, the Spanish tax man could not touch any of our money from our sale, or savings.

It turned out to be good advice, as a lady who sold her UK property after becoming a resident recieved a large tax bill from the Spanish tax man.

Lots of different advice, ours was delt with by Carmen from PALS solicitors, she was bang on, and this was confirmed by the Spanish tax man who wanted nothing from us over the sale, or savings.

Can only say what happened to us.

Yes you have to declare everything, big fines if you do not, it comes under the Spanish 720, again, advice given to us was correct, it can give you big worries, so be sure to get it right first time.

Civil Service pensions are exempt from tax,under income in Spain.