Surviving on Irish state pension!

Hi Mary, I assume you are living in Ireland or the UK. Believe me, being the holder of an Irish passport, you are in an enviable position regarding long stays in Spain. In footballing terms you're two up at least as I write. You are getting your personal affairs in order and I don't think you're the kind of person who'll let your situation drag on. (3 - 0). Forgive my sporting references and I know you are in a serious situation. 

The good news:- You can spend up to 6 months continuously in Spain. You can toddle down to your nearest farmacía and buy your blood thinning tablets and likely the same farmacíá will do a blood test for about €15.00 (with same day results) to ensure you'll stay within medical advice guidelines. (I'll chance 5 - 0 now). November to April appears more attractive for you now, I bet! And May to October in Ireland or the UK doesn't seem too bad now either? Why get involved in Spanish income taxes as you have a guarantee more favourable income paying tax in the Emerald Isle/UK? (6 - 0).

You may be thinking of buying a place in Spain. You can rent a good quality, centrally located, 2 bedroom apartment for €750.00 or less per month (inclusive of utilities). You have your dream situation and the best of both worlds irrespective of your personal situation. You may even decide to split your Spanish location and spend say 3 months (or even weeks) in a different location. (7 - 0 easily).

You're not the first and won't be the last in your position. I hope my humour hasn't offended (I'm a Paddy, obviously!). Best of Luck.

. . . . . while I'm on a roll . . . . Covid is putting a spanner in the works for any near future long term visitor to Spain and many posters here believe the Covid problems in Spain will last beyond September 2021. I recommend in the meantime you don't waste time and look at real estate agents websites regarding winter/spring rentals and if the time comes you can hit the ground running.

Thanks for the speedy reply Matthew nd you do make some very good points a lot of which I have considered. The problem with committing to less than 183 days in Spain is that I have to find a bolthole in Ireland for when I come back. When the house is sold I will have to find somewhere to come to here for the other six months. Then I will have to buy close to public transport or leave a car here and that would have its own problems. Plus I am leaving a property empty for 6 months. I am probably over thinking everything as every time I come up with a plan someone points out what could go wrong. Anyway what I really need to  know is if the information is correct on taxes and in the future August 2023 when all is settled and I am budgeting on €233 per week, do I really lose 2000 per annum if I relocate to Spain completely. Monthly rental of €750 is  amazing compared to renting in Dublin but would still take a lot out of a State pension budget and would eat into any nestegg I have left for emergencies very quickly. I should probably be hashing this out with some Spanish financial adviser but I am not able to communicate in Spanish yet. If you or anyone else know of anywhere I can find the advice I need I would be grateful for the contact information. Sorry for all the confusion as I do not yet know how the situation will play out I am covering all angles. A little town house in a nice friendly Spanish town with a small garden, or big terrace is the dream. 🌞🙏

Matthew has made some valid points Mary. I think he is advising not to put your eggs all in one basket, to which I agree.

I Can only imagine your emotions are all over the place with what’s going on. So it’s time I think to take professional advice from a tax advisor here in Spain. You can google it and you will definitely get a selection of English speaking professionals.

Then when you have it from the horses mouth ( remember we are all different, what I pay in taxes won’t be the same as the next person ), sit down with a relative or friend and do your sums. Have someone who is going to point out the pros and cons to you.

Renting on the coast will cost more, but you will be in the thick of things. Inland you can rent cheaply but more likely to be isolated and need your own car, which will be added expense. Also remember there are other places in Ireland to rent when you aren’t in Spain other than Dublin.

All the best whatever you decide.

Hi Mary, 

My husband is on contributory pension. 

He has been assessed for tax purposes and pays no tax, that's right none. I'm not sure who gave you this information regarding you having to pay tax here, particularly as you had mentioned using Spain as a 6 month bolt hole. Quiet possibly you were told you would be required to pay such a large amount of tax because you are selling your Irish property and as such would have money that needs to be declared. IF, all you had is your pension then that's a different story altogether. 

So, my advice would be to get as much help as you can legally to find out for sure about nesesary tax. 

Hopefully someone else has more Knowledge than I have. 

Patricia

By the way, Matthew mentioned rentals approx 750 per month. 

We pay 550 per month, the last place we were in outside of Málaga we paid 500. My son rents on Mojacar playa he pays 475 per month. He has no car, so buses everywhere. There are bargains to be had. So Google everywhere, research all the areas and if I can help with any more info feel free to message me.

Patricia

If you read my post Patricia you'll see I said "€750.00 or less" and inclusive of utilities - With respect you get what you pay for and I could quote you even cheaper rentals than yours too.

Thank you Matthew. And yes I agree you do get what you pay for, we have a beautiful 3 bed 2 bath villa with very large pool garage and conservatory. We live just outside Arboleas, different areas i appreciate are more costly, especially near the sea. And it pays to shop around we had in mind what we could afford. We stuck to it and found a perfect place. This is what I wanted to share with Mary. 

Have a lovely evening, I am 🙏🙏

Hi Mary. 

I was tax resident in Spain and found that the tax I paid was double what I pay in Ireland - enough reason for me to move to Ireland! But I have an occupational pension. There are many more tax bands in Spain but on a low income you will pay little or no tax. Also tax credits are lower and deductions fewer. But stay under 183 days a year and you will have no worries.