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spanish not resident

To be or not to be a Spanish Resident non Resident
#1
Good Morning,

Hope everyone's waking up to a sunny day . 

Just looking for a bit of advise or views please 

I am in a dilemma on whether I would be better quickly starting residency application now, in view of Brexit and my plans to stay regular in Fuerteventura .

I am in the process of selling my holiday home in Spain and buying in Fuerte (still non resident at the moment ). The plan is to use new house, as a holiday home mostly coming and going and who knows may relocate eventually or do longer stints .  I know noone knows what rules they will bring in for this and I may be limited to time on island if I stay as  a non resident  !! But looking for opinions on this subject and also  tax implications  involved on UK  incomes  . 

I think it maybe the safest bet to quickly apply and edge my bets. As there are benefits to being a resident . 

What I am concerned about is my UK income and tax. I receive  a work pension and income from flat rentals in the UK . I believe I would be taxed on this income in the UK and Spain,  if I managed to gain residency that is . 

I don't mind paying Tax here or abroad . but don't want to end up worse off through poor planning . 

I just wondered if anyone been in similar position  and can advise how it worked out for them or any constructive advise. I have researched and lot of negative info. I would much rather here from you lovely people and your experiences who are actually living the dream . Thanks JDEEFD
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#2
Very simple answer really, as you own a property in Spain, why haven't you obtained Residency?  (Fuerteventura Residency and Spanish Residency are the same thing).

2nd point, I think you have left things far to late to process an application here.  There are very few days (excluding weekends and holidays) that the Immigration Office and the Police Station will be open and (up to now) appointments have been like gold dust. 

Finally, regarding your tax situation, you need expert advice on this, and what you will get for free on here is not going to be reliable. Book an appointment with a knowledgeable expert.  Did you not have tax advice in Spain?

Tom.
25/75 Birmingham/El Cotillo. Cool
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#3
Very simple answer really, as you own a property in Spain, why haven't you obtained Residency?  (Fuerteventura Residency and Spanish Residency are the same thing). 


Thanks Tom 
I didn't really need to and didn't know long term plans at the time.  I have had the house in Spain 13 years and used to come and go no probs .But Brexit obviously change that . I just paid normal non resident tax yearly ect .

2nd point, I think you have left things far to late to process an application here.  There are very few days (excluding weekends and holidays) that the Immigration Office and the Police Station will be open and (up to now) appointments have been like gold dust. 

Your probable right especially as I am stuck in UK . reading some info if you apply now you have some time to complete as long as applications in. 
As you said I am probable best speaking to tax specialist . They will surely still have a form of residency application just harder to gain I would imagine . not sure on this. 

Finally, regarding your tax situation, you need expert advice on this, and what you will get for free on here is not going to be reliable. Book an appointment with a knowledgeable expert.  Did you not have tax advice in Spain? 

Ive paid all tax in spain as I should through Solicitor  . So never really contacted tax specialist . 

Tom.
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#4
There are quite a few of us British people who own property in Fuerteventura but have no plans on becoming residents here, merely staying for 90 days or less at a time and not staying in excess of 183 days in a year.  My understanding of Spanish residency is that if you are not here for over 183 days a year, it could or will be rescinded anyway.

There are many property owners on the island from countries that have never been in the EU.  Is the forum of the opinion that UK owners specifically will be 'punished' in some way for Brexiting?
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#5
(13-12-2020, 08:23 AM)Cotillo_Tom Wrote: Very simple answer really, as you own a property in Spain, why haven't you obtained Residency?  (Fuerteventura Residency and Spanish Residency are the same thing).

2nd point, I think you have left things far to late to process an application here.  There are very few days (excluding weekends and holidays) that the Immigration Office and the Police Station will be open and (up to now) appointments have been like gold dust. 

Finally, regarding your tax situation, you need expert advice on this, and what you will get for free on here is not going to be reliable. Book an appointment with a knowledgeable expert.  Did you not have tax advice in Spain?

Tom.

Very many people who own property in Spain choose not to become a Spanish Resident. The main reason is very simple, Money

Many taxes are more punitive in Spain (although not all, Council Tax being the most obvious), and the fines levied for non-declaration are high.

Being non-resident limits the time one can spend in Spain, being resident involves taxation. It really is that simple, unless you have a very unusual set of circumstances. 

Many choose to ignore this inconvenient truth. Not wise IMO.

DYOR
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#6
(13-12-2020, 12:35 PM)Grampiangranny Wrote: There are quite a few of us British people who own property in Fuerteventura but have no plans on becoming residents here, merely staying for 90 days or less at a time and not staying in excess of 183 days in a year.  My understanding of Spanish residency is that if you are not here for over 183 days a year, it could or will be rescinded anyway.

There are many property owners on the island from countries that have never been in the EU.  Is the forum of the opinion that UK owners specifically will be 'punished' in some way for Brexiting?



Obviously the biggest “punishment” for those not claiming Spanish residency is the loss of freedom of movement. The other “punishment” is the higher non-resident taxes linked to owning/selling a Spanish property when one is a resident of a Third Country rather than an EU country.

Of course one can’t categorise an undoubted increased determination to chase up and fine for unpaid Spanish resident taxes as “punishment”. That is simply the law.
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#7
What of the people who have Spanish Residency, who illegally rent out non-Vv registered property for short term holidays for cash and declare nothing to the Spanish tax authorities?  Are they in a better place than us non-residents who simply spend the winter here?  

Loss of 'Freedom of Movement' is a moot point. Residents of Spain unable to leave the country for more than 183 days per year, non-residents unable to stay in Spain for more than 183 days a year. Whose loss of Freedom of Movement is greatest?

If we have to pay 5% more tax on selling a property here as being Third Country residents than not, so be it. Value of the property has pretty well doubled in 8 years, so can hardly complain!
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#8
(13-12-2020, 10:02 PM)Grampiangranny Wrote: What of the people who have Spanish Residency, who illegally rent out non-Vv registered property for short term holidays for cash and declare nothing to the Spanish tax authorities?  Are they in a better place than us non-residents who simply spend the winter here?  

Loss of 'Freedom of Movement' is a moot point. Residents of Spain unable to leave the country for more than 183 days per year, non-residents unable to stay in Spain for more than 183 days a year. Whose loss of Freedom of Movement is greatest?

If we have to pay 5% more tax on selling a property here as being Third Country residents than not, so be it. Value of the property has pretty well doubled in 8 years, so can hardly complain!

I don’t really get the point of your first paragraph. But not paying taxes that are due is seldom a wise choice IMO, especially in a foreign country.

Regarding your second paragraph, the two scenarios are not symmetrical. Forget taxes altogether. From our point of view as U.K. nationals it is much more restrictive for us not be free to move residence to Spain without meeting much stricter immigration requirements than it is for a UK national resident of Spain to choose to return to reside in the U.K. 

UK nationals currently residing in Spain can always return to Britain at any time (issues of non-British partners and children aside), but going forward UK nationals residing in the U.K. may well not have the option to reside in Spain at all. This is the loss of freedom of movement I am talking about and it is not symmetrical from a U.K. national’s perspective.

This loss of freedom obviously works in reverse for Spanish nationals, so this is the symmetrical part. But from January 1st the movement choices afforded to two U.K. nationals currently residing in the U.K. and Spain are clearly asymmetrical. One will always have movement options whereas the other may not.
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