Any advice as we are selling our house in Northern Ireland which is UK status. Relocating to Spain. Will our cash from sale be taxed as its UK Bank. Or will it be better if we had an account in Irish Republic?
Posted: Thu Aug 4, 2022 11:09pm
Legendary helpful member
Won’t make any difference - in Spain you are taxed on Worldwide income.
*When* you sell your house is important though, as if you sell and become resident in the same tax year, I do believe you will be subject to Capital Gains Tax on the sale of your house - but I stand to correction and I’m sure someone will be quick to correct me if I have that wrong :-D
DarioMartin wrote on Thu Aug 4, 2022 11:09pm:
Won’t make any difference - in Spain you are taxed on Worldwide income.
*When* you sell your house is important though, as if you sell and become resident in the same tax year, I do believe you will be subject to Capital Gains Tax on the sale of your house - but I stand to correction and I’m sure someone will be quick to correct me if I have that wrong :-D...
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I believe cgt on house is related to tax-residency, ie 183+ days resident in spain. If house is sold now, august, you cannot be tax resident in spain before 2023, as you are a tax resident in NI, whether you move now or in 2023, thus any cgt incurred in 2022 is as payable to your 'tax-country' 2022.
No taxreturn is needed in spain before may '24, relating to '23.
Posted: Fri Aug 5, 2022 11:07am
DarioMartin wrote on Thu Aug 4, 2022 11:09pm:
Won’t make any difference - in Spain you are taxed on Worldwide income.
*When* you sell your house is important though, as if you sell and become resident in the same tax year, I do believe you will be subject to Capital Gains Tax on the sale of your house - but I stand to correction and I’m sure someone will be quick to correct me if I have that wrong :-D...
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Thank you so m7ch for that. We were very unsure. It's going to be change I know, just trying to get stuff right. We have Irosh passports and travel with them always
Posted: Fri Aug 5, 2022 11:14am
Helpful member
Depends when you sell and when you are in Spain. If you stay more than 183 days in Spain in a tax year ie Jan to Dec you become tax resident. So best to sell your house first and then stay less than 183 days in that tax year to avoid CGT in Spain.
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Posted: Fri Aug 5, 2022 11:23am
MaggieB wrote on Fri Aug 5, 2022 11:14am:
Depends when you sell and when you are in Spain. If you stay more than 183 days in Spain in a tax year ie Jan to Dec you become tax resident. So best to sell your house first and then stay less than 183 days in that tax year to avoid CGT in Spain.
Oh that's a wonderful help!! That's fantastic!!
Posted: Fri Aug 5, 2022 11:27am
Legendary helpful member
Tanya03 wrote on Fri Aug 5, 2022 11:07am:
Thank you so m7ch for that. We were very unsure. It's going to be change I know, just trying to get stuff right. We have Irosh passports and travel with them always
Your Irish passports certainly make life soooooooo much easier for you, that’s for certain.
Your original post said “relocating” to Spain so I take that to mean you are moving here permanently … well, you’ll certainly notice the weather is better 😂😂
Jokes aside, whilst there are tax implications on settling here, they are not so burdensome as to offset the fabulous increase in quality of life and much lower cost of living you will gain and enjoy.
Whereabouts are you thinking of moving to?
Posted: Fri Aug 5, 2022 11:46am
DarioMartin wrote on Fri Aug 5, 2022 11:27am:
Your Irish passports certainly make life soooooooo much easier for you, that’s for certain.
Your original post said “relocating” to Spain so I take that to mean you are moving here permanently … well, you’ll certainly notice the weather is better 😂😂
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Jokes aside, whilst there are tax implications on settling here, they are not so burdensome as to offset the fabulous increase in quality of life and much lower cost of living you will gain and enjoy.
Whereabouts are you thinking of moving to?
That's so nice and reassuring to hear. Its always great to hear real people telling us their experience and advice. Yes, we are relocating for a better life. We are going to Almeria region. Open to ALL advice about the region. We don't want an urbanisation, but more a rural property. All that is slowing us down is the sale here. We have had very bad luck as it sold twice and fell through. So very very disappointing.
Tanya03 wrote on Fri Aug 5, 2022 11:46am:
That's so nice and reassuring to hear. Its always great to hear real people telling us their experience and advice. Yes, we are relocating for a better life. We are going to Almeria region. Open to ALL advice about the region. We don't want an urbanisation, but more a rural property. All th...
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...at is slowing us down is the sale here. We have had very bad luck as it sold twice and fell through. So very very disappointing.
Hi, Wishing you all the luck for your next buyer to complete successfully. We moved over two years ago this October, just got here before Brexit! We are not in Almeria but on the edge of Almeria, Murcia and Granada where the three meet with the A92-N motorway . If you want any advice on gaining your residency etc one titbit do not put all your money into a property and not leave yourself enough for the bank amount they expect you to have to support yourselves. I would checkout how much is needed first as we were told by the solicitors that we needed needed €20,000 for the two of us even though as pensioners we had S1 forms. When they realised we were actually binder Granada it all changed and we were told our pensions covered us. So beware. Good luck for the hot future ahead ( cold winters). Lesley
Posted: Wed Aug 10, 2022 8:08pm
Leslea wrote on Wed Aug 10, 2022 6:10pm:
Hi, Wishing you all the luck for your next buyer to complete successfully. We moved over two years ago this October, just got here before Brexit! We are not in Almeria but on the edge of Almeria, Murcia and Granada where the three meet with the A92-N motorway . If you want any advice on gai...
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...ning your residency etc one titbit do not put all your money into a property and not leave yourself enough for the bank amount they expect you to have to support yourselves. I would checkout how much is needed first as we were told by the solicitors that we needed needed €20,000 for the two of us even though as pensioners we had S1 forms. When they realised we were actually binder Granada it all changed and we were told our pensions covered us. So beware. Good luck for the hot future ahead ( cold winters). Lesley
Thank you for that. Are the winters in Almeria cold?
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