# Moving to Spain from UK



## brockied (Sep 14, 2015)

Hi There,
Me and my family would like to move to Tenerife or mainland Spain though need some more information before making a decision. We own flats on the Isle of Wight which are rented out and would like to know if it would be possible to use that income to rent in Spain? we would have £2000 a month income.

We also own a town house and once sold could afford to buy anything up to £170,000. What would be the best buying or renting and also would like some information about the tax in Spain is it harder to live there now ?.

Many thanks for your help,
David


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## 90199 (Mar 21, 2010)

Rent at first, then when you are satisfied with your choice of area, consider buying.

Our first choice was Gran Canaria, however we eventually bought here on the island of El Hierro some 170 miles from Gran Canaria.

Depending on your circumstances 2000 GBP should be more than sufficient to rent in the Canary islands.

Taxation, if you are here 183 days in a year you have to make a tax declaration on all income, most of our tax is paid in the U.K., Govt pension, but we have to pay tax on our investment profits here, so I use the services of an accountant in Tenerife, saves a lot of hassle and I know it is correct.


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## brockied (Sep 14, 2015)

Thanks for the information it's very helpful. How do you go about renting? I heard you need references.


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## 90199 (Mar 21, 2010)

brockied said:


> Thanks for the information it's very helpful. How do you go about renting? I heard you need references.


Cheaper away from the tourist areas. Some may require references, but the majority don't, usually a month rent and a month deposit, best to get a rental contract if possible.

It is a renters and buyers market where we live, rental signs on houses, plus the few estate agents that are still in business do rentals.

Rentals here start around 350€ monthly for a small 2 bed apartment, that included electricity water and rates, however we are off the beaten track on an island smaller than the Isle of Wight, with little tourism and few industries, hence 37% unemployment, despite this crime is almost unknown, hardly anyone locks there cars whilst shopping.

We are two of the five English residents.


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## brockied (Sep 14, 2015)

Would you know what tax implications there would be,if I used the rental income from properties in UK solely for renting abroad.


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## thrax (Nov 13, 2008)

Basically, once you have been in Spain for 183 days you are automatically deemed to be a tax resident in Spain and all income must be declared here and tax paid here. You won't be taxed in UK but, generally, taxes are higher in Spain than UK. However, a good accountant will advise you how best to approach your situation and how to legally reduce your tax commitment.


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## snikpoh (Nov 19, 2007)

thrax said:


> Basically, once you have been in Spain for 183 days you are automatically deemed to be a tax resident in Spain and all income must be declared here and tax paid here. You won't be taxed in UK but, generally, taxes are higher in Spain than UK. However, a good accountant will advise you how best to approach your situation and how to legally reduce your tax commitment.


As far as I understand, rental income earned in UK *MUST* be taxed in UK. You then offset this against any potential tax in Spain when declaring ALL worldwide income.

The fact that you are using rental income to fund your stay in Spain is irrelevant.


I would say that it is ESSENTIAL to get a legal rental contract (in Spanish etc. etc.). You should pay no more than 1 months rent (if unfurnished) or 2 months rent as a deposit - any more and you are being diddled. Also, the deposit SHOULD be put in an escrow account but many landlords/agents don't do this - try and insist or assume that you may never see the deposit again.


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