Re: Re: Tax Residence

#99655
Anonymous
Participant

Very true but that is only an offset. The difficulty surely is that you are still liable to pay at the higher rate of the two countries. For example income from earnings is charged at 24% in Spain above the personal allowance which is lower in Spain to age 65 and much lower therafter -so that becoming Spanish resident is positively disadvantageous. The only possible advantage is to obtain CGT exemption on a residence in which one has lived at least 3 years if one is over 65. But there are a lot of sums to do including mention of the 8% tax on pensions which is good if you have a large one but a disadvantage if you are below or modestly above the £9350 pensioner UK tax thresold. It seems quite a minefield without mentioning inheritence tax where the free amount is only about 15000 euro before they start to charge you in Spain unless you have a lot of brothers and sisters you can spread it round with extra 15000 exemption for each regardless of whether you want to give it them or they even need it !