# Moving to Malaga



## Benj23 (Oct 10, 2013)

Hi all.

Currently looking into the prospect of leaving Scotland and moving to Malaga and looking for some advice if possible.

I will continue to work in the UK 2 weeks of every month so employment is not an issue. The real question for me is what area would be best to live in? I'm 26 years old and looking for somewhere where I will be able to meet other Brits but not somewhere that is overly touristy. I'm not overly fussed about night-life. Just a nice selection of bars and restaurants would be ideal. I've visited Marbella and liked it but I was just wandering if there would be anywhere else closer to the city that would be suitable for me. I'm not overly fussed about a beach location, although a golf course close by would be an advantage and somewhere that is not overly far from the airport. 

I'm planning another trip out in the next couple of months so if anyone can recommend any areas that they think would be suitable for me to visit that would be much appreciated. 

My budget for rent would be anything upto 7/800 Euros a month maximum although I would like to find somewhere cheaper preferably an apartment in a complex. 

Thanks for your time folks. 

Ben


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## larryzx (Jul 2, 2014)

Ben, be aware that if you* make your home in Spain*, then you immediately become tax resident, so will be obliged to pay tax in Spain on your worldwide income. If you spend a couple of weeks at a time, but maintain your *real home* in UK, then as long as you do not spend longer than a total of182 days in 12 months in Spain, you will not become tax resident.


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## Benj23 (Oct 10, 2013)

Hi Larryzx,

Thanks for the reply. I was aware of the 182 day rule but didn't think it would be an issue as I would fall below that bracket and be more like 150 days. However I don't have a "real home" in the UK that I own, I just rent. Would this pose a problem to me renting in Spain??

What would be classed as "making your home in spain?" I wouldn't be looking at changing my bank accounts etc. and I could have correspondents sent to a UK address. 

thanks,
ben


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## thrax (Nov 13, 2008)

Doesn't matter where or how you live in UK it is just the number of days you spend in a country which counts.


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## larryzx (Jul 2, 2014)

Benj23 said:


> Hi Larryzx,
> 
> Thanks for the reply. I was aware of the 182 day rule but didn't think it would be an issue as I would fall below that bracket and be more like 150 days. However I don't have a "real home" in the UK that I own, I just rent. Would this pose a problem to me renting in Spain??
> 
> ...


If you will be living (as one would generally understand it) in Spain then that is where you are resident. The 182 rule is for people who may have their main home in UK but spend more than that time in Spain. But as I said that rule does not apply if your home, centre of economic activity, etc are in Spain.


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## Benj23 (Oct 10, 2013)

So what about the double taxation laws between the UK and Spain for someone in my position? 

excuse my ignorance but surely I cannot be expected to pay UK and Spanish tax?


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## el romeral (May 8, 2012)

Alhaurin De La Torre fits your criteria perfectly.


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## Lynn R (Feb 21, 2014)

Benj23 said:


> So what about the double taxation laws between the UK and Spain for someone in my position?
> 
> excuse my ignorance but surely I cannot be expected to pay UK and Spanish tax?


No - if you are tax resident in Spain by reason of living here for 183 days a year or more, the tax you have paid in the UK is offset against your Spanish tax liability when you submit your Spanish tax return. Because personal allowances and tax rates are different, you may or may not have an additional amount to pay to Spain. Spanish income tax rates are due to go down next year, the draft legislation is out for public consultation at the moment and then needs final approval by Parliament.


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## larryzx (Jul 2, 2014)

If you check the double taxation agreement between UK and Spain, (http://www.hmrc.gov.uk/taxtreaties/signed/spain-uk-protocol.pdf) you will find that in normal circumstances you make your tax return in the country where you live. Thus in the situation you describe, there is no question about paying tax in UK and offsetting it in Spain. You will be obliged to declare and pay in Spain. Should a situation arise where you are compelled to pay tax say in UK, like a bank which will not pay interest gross, then, you get 8% back from the UK taxman he keeps 12%. However, you then can offset the 12% against any tax liability on Spain. But that situation is probably very rare. At present the Spanish tax man is chasing several thousand people who have incorrectly paid their tax in another country, say on a pension, Private or State, believing they had a choice where to pay, which they are now finding they did not.

As described below by HMRC: If you give up your rented property in UK and rent in Spain, then Spain is immediately where your home is, as you would have no other in UK, and therefore, you are immediately tax resident.

Extract from INTM154020 - Double taxation agreements: residence: Dual residents
_Permanent home.
An individual is a resident of the State in which they have a permanent home available to them (though not necessarily owned by them)._

If you cannot decide on that criteria (which in your case you can) then other rules will apply, *one of those *is the 182 day rules.


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## Benj23 (Oct 10, 2013)

cheers for the info, larryzx

looks like i have some reading to do


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## brocher (Mar 21, 2011)

larryzx said:


> If you check the double taxation agreement between UK and Spain, (http://www.hmrc.gov.uk/taxtreaties/signed/spain-uk-protocol.pdf) you will find that in normal circumstances you make your tax return in the country where you live. Thus in the situation you describe, there is no question about paying tax in UK and offsetting it in Spain. You will be obliged to declare and pay in Spain. Should a situation arise where you are compelled to pay tax say in UK, like a bank which will not pay interest gross, then, you get 8% back from the UK taxman he keeps 12%. However, you then can offset the 12% against any tax liability on Spain. But that situation is probably very rare. At present the Spanish tax man is chasing several thousand people who have incorrectly paid their tax in another country, say on a pension, Private or State, believing they had a choice where to pay, which they are now finding they did not.
> 
> As described below by HMRC: If you give up your rented property in UK and rent in Spain, then Spain is immediately where your home is, as you would have no other in UK, and therefore, you are immediately tax resident.
> 
> ...




If you are working in UK , you will pay tax initially in the UK. If you are LIVING in Spain(regardless of 183 day rules), you are Spanish tax resident and will have to complete a tax return in Spain. With the double taxation treaty, you won 't pay tej same tax again that you've already paid in UK, but if you are due more (or less) by Spanish tax allowances, you will have to pay the extra (or get a refund!)

You can not choose where you are taxed, you have to give the authorities all the info and they will decide. have a read of HMRC website, ther is plenty info. It is likely that HMRC would need you to fill in a self assessment there for a few years as we'll as doing your Spanish tax return.

Another thing worth considering, if your MAIN residence is sPain, you are no longer legally entitled to UK state healthcare, nor will you be entitled in Spain as you are to paying Spanish National Insurance. You may have to get private healthcare.

Shouldn't be a problem if you have work, but you will have to prove you have sufficient income and healthcare to register for residencia within 90 days of arrival - look on FAQ thread for info on how to do this.

I like Marbella, by what I understand it isn't so dead in winter as some of the other coastal resorts. Rent is more expensive though, than in many places. Pretty much starts around 600€ / month for a half decent one bed. I'd choose a nice apt in central Marbella. Beware of complexes further from the centre of town, many are full of holidaymakers and are like ghost towns in winter- less convenient for getting about, too!

Don't know where you'll be working, but if it's Scotland - especially Aberdeen- check winter flights, they are pretty poor.


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