New TIE - Page 2

DarioMartin wrote on Mon Jul 13, 2020 11:22pm:

As John points out, the effective answer to your question is “no”.  You are property owners, and are on the Padrón which is awesome news in terms of getting your Residencia / TIE because you clearly meet the “before 31/12” criteria.

But to be considered “resident” you have to spend a minimum of 183 days a year in Spain - this of course requires Residencia, but by the sound of it you have that application underway, which is great news....

Read more...

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“Resident” is just as it sounds, it means your country of primary residence is Spain; this of course means you are no longer resident in UK as you cannot legally be a resident of two countries.  It also means HMRC will consider you tax resident in Spain meaning you will be obliged to pay tax in Spain on your worldwide income.

Once you have “Residencia” and are legally resident in Spain, you will also have to swap your licences for Spanish Carnet de Conducir.  You will be well advised to try and get this done before end of the transition period.  Whilst Extranjeria are giving a grace period to 30 June 2021 for everyone to get Residencia (as long as they arrive and are on Padrón before 31/12), to my understanding Tráfico are not extending the same grace period, and once transition ends, if you haven’t started the procedure to swap licences ..... you’ll be taking a Spanish test to regain your licence.

And if you have motorcycle, HGV, PTV etc, you’ll be taking Spanish tests for each and every one of those as well ... and the tests are not in English .... (this last paragraph isn’t really directed at you, but at anyone reading this vacillating over changing their licence!!)  

Andy56 wrote on Wed Jul 15, 2020 12:32pm:

I thought that because the U.K. had a reciprocal tax arrangement with Spain you were still entitled to pay tax in either country? 

DarioMartin wrote on Wed Jul 15, 2020 1:20pm:

No - rules of double taxation mean that if you are taxed on something in UK, you won’t pay tax here, but if you are resident here you are obliged to complete the Modelo 720 and declare worldwide income here.

Andy56 wrote on Wed Jul 15, 2020 6:55pm:

Yes, I understand I’ll have to declare my income but if I’ll already paid tax on some of it in the U.K. I won’t have to pay again in Spain. At least that’s what my accountant told me! Andy 

DarioMartin wrote on Wed Jul 15, 2020 7:14pm:

That is correct - in a cackhanded roundabout way that was what I was trying to say 😁

DarioMartin wrote on Wed Jul 15, 2020 7:18pm:

“Knows his stuff”? You’ve missed out on my drubbing due to my beliefs on another thread then 🤣

Andy56 wrote on Wed Jul 15, 2020 7:22pm:

I think you can hold your own!! 😂😂😂

Beannie1 wrote on Wed Jul 15, 2020 7:52pm:

Here is a link to the Spanish Gov advice issued a couple of days ago on the new application process post 6th July. Its in English and fairly comprehensive

http://prensa.empleo.gob.es/WebPrensa/salamultimedia/documento_enlaces/covid/GUIA_BREXIT_ENG.pdf