Taxation

My suggestion is that you obtain advice on the taxation position from a U.K. accountant/tax adviser. If you sell your U.K. house you may have to pay UK tax but possibly not if you are buying another home in Spain to live in. 

On the other hand it may be sensible to rent out your U.K. home and then rent a property in Spain before making an irrevocable decision. That is what we did. You would still have to pay tax on the U.K. rental income you receive.

Good luck.

We don’t have to pay tax on our UK property if we sell it. But have read that we would have to pay capital gains tax in Spain if we move there within a year of the sale. 

Not many UK tax advisors know of the very complicated tax situation in Spain and suggest a Spanish tax advisor. In our particular situation it appears too complicated to be worth the risk of moving there before my spouse retires. Which would then not happen at all. 

Hi Val,

You are wise to be cautious, we have been caught out big time. I rented out my UK house when I moved here, and the Spanish tax authorities charge me £2000 per year tax on the rental income, and then again on our state pensions , its a rip off non of the money is earned in Spain so why should it be taxed in Spain. I pay tax on both the rental income and the pensions in the UK. I have spoken to 3 different tax advisors here and they all say the same, That's Spain!!!!!!!  They do say that there is a 'double taxation' cause and all you have to do is fill out a form, well that's a joke, my accountant here doesn't know of any form and the UK tax office say it should be available and can do nothing without it. So I hope this helps, and good luck.

Jenni

Thank you so much for your advice. At the moment Brexit and the exchange rate is putting a hold on everything. https://www.gov.uk/government/publications/double-taxation-treaty-relief-form-dt-individual

Go to this site for the form it’s on UK gov website and called DT-Individual 

Hope it helps let me know

Hi Val,

Thanks for the info, we have the form from the UK end, the problem is here in Spain, they don't want to know!!!!!!! Nightmare. Anyway your very wise to put things on hold, the exchange rate is awful and we cant see it getting any better. Have a nice day

Regards  Jenni

As a resident in Spain you will be taxed on your income worldwide. That includes pensions, money from shares, rents paid on on property in the UK or elsewhere - ALL INCOME.  Taxes are generally speaking higher in Soain and any allowances given are far lower here than in the UK. As a result, as a resident you will pay more tax on less income. Failure to declare fully ypur income can lead to massive ( and I mean MASSIVE) fines and Spanishtax inspectors are becoming increasingly proactive in their investigations. Take professional advice from a Spanish Gestor ( accountant) and don't get caught out.  

Thanks Susi,

My Spanish tax advisor stresses that we are taxed here in Spain ONLY on our pensions.

However the percentage rate of that tax is based on our worldwide income.

Is she correct?

Kind regards,

Robert Seaton

I'd stay in the uk if I were ups, we love it here,been here 21 yrs wouldn't go back the ago od old uk has no leaders, crime it's not got any better since we left.

U.K. Capital gains tax. Have been moving a lot then? If you've not been moving about can't see why you should pay capital gains tax, if it's your main residence.

There is a double taxation agreement , if you go to a Gestoria, it's all simple,process, you pay tax here only here,mas long as you have left the UK,confirmed by the tax people, if not you pay tax in the UK.

If you are pensioners here you start to pay tax over 20,000 € that's €10,000 each,you declare it and pay it, you don't have to pay anything in the UK if you are a Spanish resident here.

Go to the professionals don't listen to people who do not know and just guess.

Spain is Spain, it's lovely if you want to Speak a bit of Spanish ,mix etc. If you want the UK here, I'd stay in the UK.

Dee