Spain Residency and tax implications

[jamesd]

Hi,


I am moving to Spain soon (valencia). I have quite a complicated situation and was hoping someone could shed some light on it.

Basically, my I am living in London at the moment. I am an irish citizen but have a property business in the UK. My wife is Colombian and is currently applying for a 5 year EU residents card as the family member of an EU citizen to reside in the Uk. However, we have decided that Spain might be a better option for us.

I have a lot of rental properties in the UK and I live off the income. I am considering doing something property related in Spain but have not decided yet. However, I am wondering about the tax implications on my rental income as I will no longer be a UK resident. My dilemma is I will have to become a Spanish resident in order for my wife to get her EU residents card for Spain to allow her to work. I dont want to be liable for Spanish income tax as I would probably end up paying far more than I do here in the UK (due to the fact I can write so much off against costs etc).

It would be great if someone could advise me on the best approach.

Thanks

James

[Robster]

Are these properties owned as an induvidual, or as a UK registered limited company ?

[jamesd]

Hi Robster,


They are owned by me as a sole trader.

Thanks for your reply.

James

[Robster]

Tread very carefully here and make sure you get some good quality advice from an International Tax Advisor ! Taxes on incomes gained by Spanish Residents from outside of Spain can be taxed anywhere between 15 - 40% depending on the value of the income.

I haven't looked into this subject for a few years so bear in mind that may well have changed ....

[jamesd]

OK. I will look into this further. Thanks for the advice.

J

[Mekon]

It might be worth you looking into setting up as a UK registered company, I know that it would certainly make things better for you from an Inheritance Tax perspective, if not income tax.

[OldTimer]

If you are able to find a way to avoid paying taxes in Spain you will then not be able to have access to the state healthcare or benefits, so will need to pay for private healthcare anyway !