Spanish Property Insight › Forums › Spanish Property Forums › Real Estate Topics, News & Discussion › Which party will drive more Brits to Spain? › Re: Re: Which party will drive more Brits to Spain?
If you are non resident you continue to pay UK taxes and if you are over 65 get better personal allowance than resident in Spain?canaries. However pensions are taxed at 8% so if you get a large private or company pension you can be better off. Taxes on interest is 1% less but its more on dividends and tax on earnings in Spain is 24%. If you sell your property as non resident you now pay 19% capital gains reduced from 35% by the EU so no different from a 2nd home in UK. If you go resident then you can move capital gains tax free within the country after a while and if over 65 can repatriate cgt free if lived in the property 3 years. Youmight though loss some exemption on a UK main residence -but not sure how this works. The main advantages of course are not monetary -avoiding the winter -and a healthier climate that can make such a difference. It depends on your lifestyle too -no need to over-eat and if you like fishing you can partially feed yourself . If you have a garden you have long growing season -if you like wine -its not expensive to drink at home. Above all the sunshine makes you feel better. If you like lots of expensive social life thats where you will notice it but if like me you are quite happy living economically its ok unless the £ drops another 10 20 or 30%. The only way round that is to have euro investments -equities and bonds in the stronger euro economies. Banco Santandar is Ok if bought last year at 4-5 euro but at current price -well who really knows despite their substantial Latin American presence.