# Residency & Healthcare - bit confused!



## LesleyL (Apr 18, 2012)

Hi
Have just read on another forum that if you move to Spain and are 60 or over, your healthcare is provided. Is this correct??
Also it hinted that the proof of income allowances were more lenient for that age bracket.
We are planning a move over there in May next year and my husband will have reached his 60th birthday by then.
The more I read about this subject, the more confused I get.
Thanks


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## JaneyO (Sep 24, 2012)

LesleyL said:


> Hi
> Have just read on another forum that if you move to Spain and are 60 or over, your healthcare is provided. Is this correct??
> Also it hinted that the proof of income allowances were more lenient for that age bracket.
> We are planning a move over there in May next year and my husband will have reached his 60th birthday by then.
> ...


You can get state healthcare in Spain if you are,or are a dependant of, someone who is receiving a Uk state pension. It is being a pensioner that qualifies you, not your age. You need to apply to Overseas pensions in Newcastle for a form S1 and if one of you is a dependant make sure they are included on the form, if you are both pensioners you need one each. On another issue you say you are moving in MAy, do you realise this will mean you are considered tax resident in Spain that year, bad news if you are selling a house, receiving a pension lump sum or any other windfall that would be tax free in the UK. Better to delay your move until early July if you can, I think the 2nd or 3rd July is the cut off date for the 183 day tax resident rule. Lots more info on this in the forum. Good luck.


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## Stravinsky (Aug 12, 2007)

Yes, unfortunately 60 isn't the state pension age for men (or most women now!) and therefore neither of you will be pensioners / eligible for Spanish state system under the pensioner basis. 

I got state health in Spain as a dependent when my wife reached 60, but that was because she fell into the bracket where 60 was still the age she got state pension. If your official state pension age is 60, then once you reach that your husband will also get it as a dependent


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## xabiaxica (Jun 23, 2009)

AND...... if you've only just stopped work in the UK you might/will probably qualify for an S1 for healthcare here for a limited period - again call the Overseas Healthcare Team at the DWP


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## JaneyO (Sep 24, 2012)

xabiachica said:


> AND...... if you've only just stopped work in the UK you might/will probably qualify for an S1 for healthcare here for a limited period - again call the Overseas Healthcare Team at the DWP


I think they are proposing to stop issuing these as of next April, so check it out with DWP. If you have to get private healthcare it is usually quite a lot cheaper here- with Spanish companies- than it is in the Uk with BUPA etc.


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## xabiaxica (Jun 23, 2009)

JaneyO said:


> I think they are proposing to stop issuing these as of next April, so check it out with DWP. If you have to get private healthcare it is usually quite a lot cheaper here- with Spanish companies- than it is in the Uk with BUPA etc.


yep - lots of changes under discussion atm - one thing I've learned since being here is don't believe it til you see it!


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## JaneyO (Sep 24, 2012)

xabiachica said:


> yep - lots of changes under discussion atm - one thing I've learned since being here is don't believe it til you see it!


Exactly! And if Lesley is confused now heaven help her when she gets here and faces Spanish bureaucracy in all its glory!


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## xabiaxica (Jun 23, 2009)

JaneyO said:


> Exactly! And if Lesley is confused now heaven help her when she gets here and faces Spanish bureaucracy in all its glory!


ah - we'll all be here to help her through it though


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## Stravinsky (Aug 12, 2007)

When, some years ago, someone said there will be free healthcare in Spain for all, I said then ... don't hold your breath. I'm glad I didnt.


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## baldilocks (Mar 7, 2010)

xabiachica said:


> ah - we'll all be here to help her through it though


With even the odd video on how to deal with funcionarios!


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## xabiaxica (Jun 23, 2009)

baldilocks said:


> With even the odd video on how to deal with funcionarios!


 :whip: :nono:  :yell: :fish: :smash:


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## baldilocks (Mar 7, 2010)

xabiachica said:


> :whip: :nono:  :yell: :fish: :smash:


Thought you'd like that!!!! tee hee


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## LesleyL (Apr 18, 2012)

Thank you all so much for your comments on this. I am clearer now in my mind on the healthcare issue. But Janey O has brought something to my attention - as my husband will be in receipt of a pension lump sum when he retires. So are you saying that if we move over in May next year we will have to pay tax on that lump sum - even if we have used it for paying off part of our mortgage for example?? But if we move over after the beginning of July we will be exempt from that tax? Would appreciate your help on this too - as this would hit us quite a bit financially. Thanks


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## LesleyL (Apr 18, 2012)

Just had another thought reference our situation. The lump sum my husband will be receiving will be from a government pension and we will be living on his two government pensions. Which means he will be taxed on these in the UK automatically - so will the lump sum he receives not be taxable in the UK too?
Thanks again everyone!!


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## LesleyL (Apr 18, 2012)

Would appreciate it if someone could give me some advice on my two previous posts above - although think we have pretty much decided now to defer our move for 3 months to avoid the 183 day rule in the year we receive the pension lump sum - better safe than sorry. Look forward to your replies.


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## JaneyO (Sep 24, 2012)

LesleyL said:


> Would appreciate it if someone could give me some advice on my two previous posts above - although think we have pretty much decided now to defer our move for 3 months to avoid the 183 day rule in the year we receive the pension lump sum - better safe than sorry. Look forward to your replies.


I think you are wise, it's not worth the hassle let alone the money for the sake of three months. Regarding the pension lump sums, these are normally tax free in the UK ( shhhh don't tell Osborne!) but I was horrified to find this is not the case in Spain. My FA asked a tax advisor and the info I was given was that you are given an allowance of the amount of contributions you have paid in to the fund personally, then they want tax on the balance. So if you had £50,000 and had paid in £40,000 you would have to pay tax on £10,000. I had to write to my pension fund to find out how much in total had been paid in I'm not that good at record keeping, but it was easy to get the figure. Sad to say I'm 
not sure the Spanish taxman would care much what you had spent the money on a long as he got his cut!


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## LesleyL (Apr 18, 2012)

Hi JaneyO
Thanks for your response and reassurance. As said - 3 months is neither here nor there in the grand scheme of things. Although I am desperate to get over there full time!


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## CapnBilly (Jun 7, 2011)

LesleyL said:


> Hi JaneyO
> Thanks for your response and reassurance. As said - 3 months is neither here nor there in the grand scheme of things. Although I am desperate to get over there full time!


The general view is that as a government pension isn't taxable in Spain under the DTA, then a lump sum isn't either, as its just commuted pension. Having said that, under the new DTA, due to come into force next year (probably), they can take it into account in working out your marginal rate of tax, but this would only affect you, if you have some other income which is taxable in Spain. Janey O is quite correct how the tax is calculated. 

Note. Not all government pensions are government.pensions under the DTA e.g some heath service pensions.


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## extranjero (Nov 16, 2012)

LesleyL said:


> Thank you all so much for your comments on this. I am clearer now in my mind on the healthcare issue. But Janey O has brought something to my attention - as my husband will be in receipt of a pension lump sum when he retires. So are you saying that if we move over in May next year we will have to pay tax on that lump sum - even if we have used it for paying off part of our mortgage for example?? But if we move over after the beginning of July we will be exempt from that tax? Would appreciate your help on this too - as this would hit us quite a bit financially. Thanks


I think there must be many expats who didn't realise they would be taxed on lump sums, winnings, savings plans, matured endowment policies etc in Spain if they moved to Spain the same year as they received them, before July 2nd, and have done so unaware. some,years ago; They must be horrified, as very large sums of money are involved.This is not something one ever sees in advice given to those thinking of moving to Spain.Even those already living here may be soon to receive inheritances, or proceeds from selling a UK house, or perhaps compensation from some event many years ago in UK.I bet they hate the thought of the Spanish taxman plundering their hard won money!Will they declare, or not?


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## LesleyL (Apr 18, 2012)

I'm so glad that we have been made aware of this now, and have this wonderful forum to thank for that. It is a fantastic resource of information for us 'soon to be' expats as research is everything as they say. Thanks guys.


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