# 1 year holiday in Spain, what pitfalls?



## KEEF690 (Mar 31, 2013)

Hi everyone, my first post here and looking for help please.

My partner and I, in our fifties with no dependant children, but 2 dogs are going to take a year off work and stay in Spain. We are looking at the Valencia/Alicante general area, probably close to the coast. We will have around £600pm income from a property in the UK, otherwise we will be living off savings, hoping less than £15,000 will be needed. We will be travelling by van, with most of our possessions, then renting on our return to UK. We will be having a 1 week holiday in November to decide on the exact location for us and hopefully to find a long term rental place too.

Every post I read about staying more than 6 months goes on about cars, which is of no interest to us, we will use public transport mainly and if we decide to get a car, will look into that side of it then or just rent one for any special occasions.

The questions we still have not fully answered by reading on here are as follows:

1. Unfurnished property seems hard to come by, are there specialist sites/agents?
2. Is having 2 dogs going to cause any problems with renting?
3. Will we have to pay tax on our £600pm from uk rental income, as that is our only income or is there an amount you can earn tax free, as in the UK?
4. Is £600pm income enough to be able to apply for residency after the 6 months?

If anyone has anything else they think might help, please feel free to add it.


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## zenkarma (Feb 15, 2013)

KEEF690 said:


> Hi everyone, my first post here and looking for help please.


Hello and welcome.

To try and answer your questions:

1/ This is just something you'll have to deal with on a rental by rental basis. Most rentals would come fully furnished but there might be some, like new homes that have never been occupied that may be available unfurnished. You just need to contact agents in the areas you're thinking of moving to and ask them.

2/ I can't answer this really, but I think it depends on the property and the rental agent.

3/ Yes. If you're resident in Spain for more than 183 days in any year, you will be considered a fiscal resident and you will have to declare and be taxed on your worldwide income. Not only that you will have to file a tax return detailing all your worldwide assets. The Spanish personal allowance before tax is paid is I believe €5,050, I don't know what the married tax allowance might be. You might just get away without paying any if the married allowance is higher.

4/ That plus your savings might be enough, but you'd need to find out.

Here's a good site with lots of useful information about taxation: http://www.advoco.es/

One other thing you might want to think about is Health Insurance, although for a year you might just get away with using your EHIC cards. I'm sure someone else will advise on this.


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## Allie-P (Feb 11, 2013)

Hi,

We wanted an unfurnished property - told the Landlord, who then shifted his furniture to another of his properties......I don't know if they are all so obliging, though.

We intended to have a dog & advised the LL, accordingly...he gave us permission.


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## donz (May 5, 2010)

you won't get residency without proof of healthcare provision (and that's not EHIC which is for emergency use when travelling)


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## xabiaxica (Jun 23, 2009)

donz said:


> you won't get residency without proof of healthcare provision (and that's not EHIC which is for emergency use when travelling)


yes, they'll either need to get private healthcare or ask the DWP in Newcastle about S1s


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## Leper (May 12, 2010)

Most of your questions have been answered. I would not get caught up in whether it is furnished or unfurnished property you acquire. The going rate for 2 bedroom furnished accommodation is €500 per month + electricity. 

The dogs might cause some problems particularly if they are not small especially in an urbanisation.

My advice is to go to Spain outside of mid June - end August (prime holiday season). Also, you seem to have itchy feet so why stay in one location only?


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## snikpoh (Nov 19, 2007)

Leper said:


> Most of your questions have been answered. I would not get caught up in whether it is furnished or unfurnished property you acquire. The going rate for 2 bedroom furnished accommodation is €500 per month + electricity.
> 
> The dogs might cause some problems particularly if they are not small especially in an urbanisation.
> 
> My advice is to go to Spain outside of mid June - end August (prime holiday season). Also, you seem to have itchy feet so why stay in one location only?


It depends entirely where you go. Around here the price is between 250 and 300


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## Dunpleecin (Dec 20, 2012)

If you want to think a little "outside the box" with regard to somewhere unfurnished...Check out the costs of a furnished place against an unfurnished place and think about putting your own stuff into storage and see whether you can actually do things a bit cheaper that way. You would expect an unfurnished place to cost less, but it's not necessarily so.


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## KEEF690 (Mar 31, 2013)

*Thank you*

Good points from all of you. We were thinking of taking our furniture etc, but we are now thinking we will get a storage unit and travel somewhat lighter.

As far as private healthcare goes, when do we need to get this from, is it 90 days? Also where/who is best?

One other thing, if we get residency after 6 months, does that mean we are no longer responsible for UK taxes etc and are no longer UK residents. If so, what happens when we return to UK, do we have to apply for residency? Does that affect any of our rights in the UK? EG healthcare, benefits, pensions etc.


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## baldilocks (Mar 7, 2010)

KEEF690 said:


> Good points from all of you. We were thinking of taking our furniture etc, but we are now thinking we will get a storage unit and travel somewhat lighter.
> 
> As far as private healthcare goes, when do we need to get this from, is it 90 days? Also where/who is best?
> 
> One other thing, if we get residency after 6 months, does that mean we are no longer responsible for UK taxes etc and are no longer UK residents. If so, what happens when we return to UK, do we have to apply for residency? Does that affect any of our rights in the UK? EG healthcare, benefits, pensions etc.


Sorry but what hasn't been pointed out and is confusing you is the difference between residency and fiscal residency.
If you are going to be here for more than 90 days you are required to become "resident" which means that you have to show that you have a regular income into a *Spanish* bank account or capital both above a certain level. You will also need to show that you have healthcare provision (if you have been paying NI in UK then DWP will provide S1 forms which should cover you for a limited time, otherwise you will need a private healthcare arrangement that covers you not only for emergencies but also for regular non-urgent treatment. This will need to be in force from day 1). The six months (183 days) criterion relates to your "tax residency" (i.e. you become liable to pay taxes in Spain) which is separate from the residency criterion (90 day)

Your tax residency in Spain does not affect your liabilty to pay tax on income in UK but there is a double taxation treaty that saves your having to pay the same tax twice, however, since tax rates differ (20% Uk and 26% in Spain), you may have to pay and additional 6% in Spain on the income on which you have already paid 20% in UK.


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## el pescador (Mar 14, 2013)

what if i only have savings but no income other than interest and dividends?
it will only be between 100 and 200 a month.

i know i will have to declare these but say a couple of grand a year as "income" is that enough to live on in their eyes?


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## xabiaxica (Jun 23, 2009)

el pescador said:


> what if i only have savings but no income other than interest and dividends?
> it will only be between 100 and 200 a month.
> 
> i know i will have to declare these but say a couple of grand a year as "income" is that enough to live on in their eyes?


some people have been asked for income of 600€+ a month PLUS a bank account showing 5 - 6000€

some just for the income & some just for the bank balance

it seems to depend upon the office

it does need to be in a Spanish bank though


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## el pescador (Mar 14, 2013)

xabiachica said:


> some people have been asked for income of 600€+ a month PLUS a bank account showing 5 - 6000€
> 
> some just for the income & some just for the bank balance
> 
> ...


if the income was low but the bank ballance high i presume they would be ok with that??


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## xabiaxica (Jun 23, 2009)

el pescador said:


> if the income was low but the bank ballance high i presume they would be ok with that??


presumably..............


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## bob_bob (Jan 5, 2011)

I'd not bother with furniture but I'd look at taking some home entertainment, smaller flat screen TV and DVD player (and DVD's), laptop, radio sort of thing. You can put your music collection on one or two USB memory sticks an play them through the laptop.


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## puertouk (Aug 22, 2010)

KEEF690 said:


> Hi everyone, my first post here and looking for help please.
> 
> My partner and I, in our fifties with no dependant children, but 2 dogs are going to take a year off work and stay in Spain. We are looking at the Valencia/Alicante general area, probably close to the coast. We will have around £600pm income from a property in the UK, otherwise we will be living off savings, hoping less than £15,000 will be needed. We will be travelling by van, with most of our possessions, then renting on our return to UK. We will be having a 1 week holiday in November to decide on the exact location for us and hopefully to find a long term rental place too.
> 
> ...


Why not spend 3 months in Spain, then go to Portugal for 3 months, then maybe back to Spain for 3 months, then back to Portugal. That way you get round all the red tape and costs.


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## baldilocks (Mar 7, 2010)

This thread is getting confusing because we have two enquirers asking about vaguely similar but, neverheless, different things.

As has been pointed out if you are here or plan to be here more than 90 days, you are required to become resident and that means that you have to show that you have sufficient means (either income or capital) to not become a financial liability on the state (same as in Uk and most other countries) PLUS healthcare provision (either by insurance or by having documentation from another EU country which will pay for your healthcare in Spain).

Just slipping over the border and back again every three months is unlikely to be accepted as never getting to the 90 day mark requiring you to change your status since, without border controls, there is no proof that you actually left the country.

Bringing a UK registered vehicle (or, indeed a vehicle registered in any other country) is of limited value because, once you become resident (over 90 days as above) you are not allowed to drive a foreign registered vehicle in Spain which means that you have to get it re-registered in Spain (can cost as much as €2000 or more) and if it is a RHD van or similar vehicle cannot officially be re-registered due to the limited all-round visibilty from the driving seat (you would also have to have the vehicle's lights changed for driving on the right even if it is a car or motorcycle). Also should you decide or be forced to sell it, the resale value will be quite limited. In any case if the vehicle has not been reregistered (when you wuld be liable to pay the vehicle tax in Spain and have the ITV tests) it must always be street legal as if it were still in its country of registration (for a UK registered vehicle - be in possesion of a valid MoT and VEL which must be displayed as in Uk plus have valid insurance) 

Whether you choose to rent furnished or unfurnished is a matter of personal choice. Furnished makes the option of moving to a different location a little easier and saves bringing anything more than you need for daily living..

Somebody mentioned using public transport - you should be aware that unless you are in a fairly large city or on certain parts of the costas, public transport may be limited and/or infrequent (maybe only one or two trains per day, if any, and the nearest station may be 60 km away and no buses to connect; the odd local bus which may not run every day except on school days at school times, and a few long distance buses).

If any of this is a surprise - as has often been said - YOU need to do lots of research into the criteria that are important to YOU - here is not the same as there, wherever here and there are.

Forgot to add that if you are here for more than 183 days then you also become fiscally resident and are liable to pay taxes in Spain on your worldwide income. n.b. this is nothing to do with the 90-day residency requirement.


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## xabiaxica (Jun 23, 2009)

baldilocks said:


> Just slipping over the border and back again every three months is unlikely to be accepted as never getting to the 90 day mark requiring you to change your status since, without border controls, there is no proof that you actually left the country.


actually it does 'reset the clock' for EU citizens...slightly ridiculous but true - although as always, the onus would be yours to prove it if questioned




baldilocks said:


> Forgot to add that if you are here for more than 183 days then you also become fiscally resident and are liable to pay taxes in Spain on your worldwide income. n.b. this is nothing to do with the 90-day residency requirement.



but yes, no amount of 'border-hopping' would avoid the tax residency issue if you clock up the 183+ days in a calendar year.

again - onus of proof upon you if questioned


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