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Moving to Spain post transition period. - Page 2

Matthew

Posted: Tue Jun 30, 2020 9:33am

Matthew

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Posted: Tue Jun 30, 2020 9:33am

Dave777 wrote on Mon Jun 29, 2020 11:26pm:

Thanks everyone for replies. Not sure we could rent out there before we sell. Selling the house during the current pandemic is tricky and those that may want to purchase are themselves isolating. Getting a buyer to complete before xmas is unlikely. We should have thought this through sooner.

Dave, On a move to Spain the last thing I'd do is sell the house in the UK. This always was and is your main asset. At this moment you don't know if Spain is for you; you want it to be for you, but the bottom line is you don't really know. 

You won't know until you come to Spain. But, if you've sold your house in the UK the room for a dignified retreat is obviated. I hope you won't need the retreat, but I spend enough time in Costa Almeria to know the reality.

Therefore, (if you're retired) come to Spain around October and rent initially for several weeks in whatever area you like. You've got to recognise your spouse's/partner's situation too. There may be other concerns. But, if you have the ball at your feet you can do something with it. If the ball is up the field you might as well stand around with your hands in your pockets and admire the view. 

You have options the main of which is to rent out your home in the UK. But, even if you don't want to do this renting off season in Spain might not be as expensive as you think. Good carpenters say "Measure twice, cut once."

DarioMartin

Posted: Tue Jun 30, 2020 9:41am

DarioMartin

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Posted: Tue Jun 30, 2020 9:41am

Matthew wrote on Tue Jun 30, 2020 9:33am:

Dave, On a move to Spain the last thing I'd do is sell the house in the UK. This always was and is your main asset. At this moment you don't know if Spain is for you; you want it to be for you, but the bottom line is you don't really know. 

You won't know until you come to Spain. But, if you've sold your house in the UK the room for a dignified retreat is obviated. I hope you won't need the retreat, but I spend enough time in Costa Almeria to know the reality....

...

Therefore, (if you're retired) come to Spain around October and rent initially for several weeks in whatever area you like. You've got to recognise your spouse's/partner's situation too. There may be other concerns. But, if you have the ball at your feet you can do something with it. If the ball is up the field you might as well stand around with your hands in your pockets and admire the view. 

You have options the main of which is to rent out your home in the UK. But, even if you don't want to do this renting off season in Spain might not be as expensive as you think. Good carpenters say "Measure twice, cut once."

BLOODY good advice Matthew - thank you.

Yes, it’s not always about selling up and finalizing before arriving.  Matthew is right, leave yourself some room to maneuver; come here, rent in the off season - as a few have said, cost of living is a LOT cheaper here.  If it’s for you, then you can sell your house in the UK, whilst processing Residencia here.

If you find it’s NOT for you .... you’ve lost nothing and gained experience.

L181SKY

Posted: Tue Jun 30, 2020 12:31pm

L181SKY

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Posted: Tue Jun 30, 2020 12:31pm

DarioMartin wrote on Tue Jun 30, 2020 9:41am:

BLOODY good advice Matthew - thank you.

Yes, it’s not always about selling up and finalizing before arriving.  Matthew is right, leave yourself some room to maneuver; come here, rent in the off season - as a few have said, cost of living is a LOT cheaper here.  If it’s for you, then you can sell your house in the UK, whil...

...st processing Residencia here.

If you find it’s NOT for you .... you’ve lost nothing and gained experience.

Could I ask Dario,     If Dave comes in October, he’s not got much time to decide if he likes or not. If he does,  great,and applies for residencia ,great. U.K. house on market.  Fine.   If he has applied saying he is resident in Spain with his rental agreement, main residence. Here’s the thing,  does that then mean he will have to pay Capital gains tax on the U.K. house ?as that would now not be his main residence.    Asking for a friend lol.      As “you can’t be French and Algerian “ 😎.      

DarioMartin

Posted: Tue Jun 30, 2020 12:48pm

DarioMartin

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Posted: Tue Jun 30, 2020 12:48pm

L181SKY wrote on Tue Jun 30, 2020 12:31pm:

Could I ask Dario,     If Dave comes in October, he’s not got much time to decide if he likes or not. If he does,  great,and applies for residencia ,great. U.K. house on market.  Fine.   If he has applied saying he is resident in Spain with his rental agreement, main re...

...sidence. Here’s the thing,  does that then mean he will have to pay Capital gains tax on the U.K. house ?as that would now not be his main residence.    Asking for a friend lol.      As “you can’t be French and Algerian “ 😎.      

Interesting question - but also you have more time than you suppose - sorry - your friend supposed 😁

If you arrive in October, you don’t have to get Residencia by 31/12 - only register on Padrón etc as residing here.  You then get until 30/6/2021 to obtain your Residencia.

Now tax confuses the ever living cr*p out of me which is why i pay someone to do it, but as far as I am aware, until you take Residencia AND advise HMRC in writing that you are now resident in Spain for tax purposes, any tax paid is still paid in the UK.

Of course, you bring cash INTO Spain from a house sale, and that cash has already been taxed, the rules of double taxation should preclude more tax being taken - but you would have to declare it.

Ummmmm .... not sure I answered your question ... I saw “tax” and my brain went “ohhhh look. Purple. Butterflies .....” ...

L181SKY

Posted: Tue Jun 30, 2020 1:34pm

L181SKY

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Posted: Tue Jun 30, 2020 1:34pm

DarioMartin wrote on Tue Jun 30, 2020 12:48pm:

Interesting question - but also you have more time than you suppose - sorry - your friend supposed 😁

If you arrive in October, you don’t have to get Residencia by 31/12 - only register on Padrón etc as residing here.  You then get until 30/6/2021 to obtain your Residencia.

Now tax confuses the ever living cr*p out of me which is why i pay someone to do it, but as far as I am aware, until you take Residencia AND advise HMRC in writing that you are now resident in Spain for tax purposes, any tax paid is still paid in the UK.

Of course, you bring cash INTO Spain from a house sale, and that cash has already been taxed, the rules of double taxation should preclude more tax being taken - but you would have to declare it.

Ummmmm .... not sure I answered your question ... I saw “tax” and my brain went “ohhhh look. Purple. Butterflies .....” ...

Good answer lol.  I loved the bit about Purple butterflies haha.  Yes, I think your answer was very clear and I’ll tell My “Friend”  😎.  I hope Dave likes it here.  I cannot stand this heat 🙄.    

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truenudist

Posted: Tue Jun 30, 2020 1:36pm

truenudist

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Posted: Tue Jun 30, 2020 1:36pm

L181SKY wrote on Tue Jun 30, 2020 12:31pm:

Could I ask Dario,     If Dave comes in October, he’s not got much time to decide if he likes or not. If he does,  great,and applies for residencia ,great. U.K. house on market.  Fine.   If he has applied saying he is resident in Spain with his rental agreement, main re...

...sidence. Here’s the thing,  does that then mean he will have to pay Capital gains tax on the U.K. house ?as that would now not be his main residence.    Asking for a friend lol.      As “you can’t be French and Algerian “ 😎.      

Hi 

The way I understand it is you do not pay CGT if your home in UK is your primary home and you have lived there and not rented it out.

Whether you pay CGT if you are resident in Spain depends on where you are registered for Tax purposes. 

This link is worth a good read and explains it pretty well.

https://www.gov.uk/tax-live-abroad-sell-uk-home

Hope it helps.

regards,

L181SKY

Posted: Tue Jun 30, 2020 2:23pm

L181SKY

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Posted: Tue Jun 30, 2020 2:23pm

truenudist wrote on Tue Jun 30, 2020 1:36pm:

Hi 

The way I understand it is you do not pay CGT if your home in UK is your primary home and you have lived there and not rented it out.

Whether you pay CGT if you are resident in Spain depends on where you are registered for Tax purposes. 

This link is worth a good read and explains it pretty well.

https://www.gov.uk/tax-live-abroad-sell-uk-home

Hope it helps.

regards,

Thank you. 

Dave777

Posted: Tue Jun 30, 2020 5:46pm

Posts: 7

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Joined: 28 Jun 2020

Posted: Tue Jun 30, 2020 5:46pm

Thanks again everyone for your advice. After a lot of thought, a bad nights sleep and long discussions with oh we are going to take your advice and rent over winter. Not straightforward as we have an elderly dog but applied for pet passport and hopefully Almeria bound October. I will post on a different part of forum asking for best route.

DarioMartin

Posted: Tue Jun 30, 2020 5:57pm

DarioMartin

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Posts: 5378

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Location: Vera

Joined: 16 Aug 2017

Posted: Tue Jun 30, 2020 5:57pm

Dave777 wrote on Tue Jun 30, 2020 5:46pm:

Thanks again everyone for your advice. After a lot of thought, a bad nights sleep and long discussions with oh we are going to take your advice and rent over winter. Not straightforward as we have an elderly dog but applied for pet passport and hopefully Almeria bound October. I will post on a di...

...fferent part of forum asking for best route.

That is FANTASTIC news - look forward to welcoming you here

truenudist

Posted: Tue Jun 30, 2020 5:58pm

truenudist

Helpful member

Posts: 199

322 helpful points

Location: Mojacar

Joined: 6 May 2020

Posted: Tue Jun 30, 2020 5:58pm

Dave777 wrote on Tue Jun 30, 2020 5:46pm:

Thanks again everyone for your advice. After a lot of thought, a bad nights sleep and long discussions with oh we are going to take your advice and rent over winter. Not straightforward as we have an elderly dog but applied for pet passport and hopefully Almeria bound October. I will post on a di...

...fferent part of forum asking for best route.

Hi Dave 

Have a look at this. This was a topic asked by Lesleymeadows.

There is a wealth of good information on it. Its worth reading.

Driving back to the ukHope it helps.Regards,

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