# Tax Advice



## lordemsworth (Nov 16, 2008)

Hi - My wife and I know Valencia well and in the summer we signed up for a year's rent on a flat in the city. The idea was to spend a month or so at a time in Valencia to see if it was somewhere we'd like to live permanently. We currently make regular trips to and from the UK and are now pretty sure that we'd like to settle here, at least for the next couple of years. We have a 2 year old daughter who would need schooling if we settled here. I have a few questions - I've read on other threads that we will need a Resident's permit. Am I better using a local Gestor to help with the application? 

My biggest question is about tax, what are the Spanish tax rates like and are we likely to be worse off? I run my own UK based company, I am on the payroll and will still be an employee of the company when living here. Is that likely to cause any problems? We have savings in our UK bank account, how will this be taxed? And can you recommend somewhere we can go for tax advice. Our biggest fear is suddenly being presented with a huge tax bill due to some law we are unaware of.

Also, my daughter will need to go to school - will residency give her the right to attend publicly funded schools or are we better considering the private option?

Finally - does residency give us the right to healthcare? 

Sorry for the long post with so many questions - as you can probably tell, I'm quite in the dark about this!


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## Stravinsky (Aug 12, 2007)

lordemsworth said:


> Hi - My wife and I know Valencia well and in the summer we signed up for a year's rent on a flat in the city. The idea was to spend a month or so at a time in Valencia to see if it was somewhere we'd like to live permanently. We currently make regular trips to and from the UK and are now pretty sure that we'd like to settle here, at least for the next couple of years. We have a 2 year old daughter who would need schooling if we settled here. I have a few questions - I've read on other threads that we will need a Resident's permit. Am I better using a local Gestor to help with the application?
> 
> My biggest question is about tax, what are the Spanish tax rates like and are we likely to be worse off? I run my own UK based company, I am on the payroll and will still be an employee of the company when living here. Is that likely to cause any problems? We have savings in our UK bank account, how will this be taxed? And can you recommend somewhere we can go for tax advice. Our biggest fear is suddenly being presented with a huge tax bill due to some law we are unaware of.
> 
> ...


Well heres the answer to a few of your questions
No, residencia doea not give you access to health care. You can get temporary cover for up to 2 years by getting an E106 from the DWP, but after that if you dont contribute to the system then you will need private care. Being a resident here of course, are you not going to be contributing NI payments to a system in the UK you can no longer use?

You need specialist help on the tax situation but in general if you are employed and living here then your tax should be paid here on your income. But there seem to be so many variables that professional advice is important

You need to obtain a residence certificate within 30 - 60 days of arriving here with intent to reside, and if you haven't got NIE tax identifiers then you need to get them asap. Its the same form nowadays I believe. If you have a tax gestor then he can help with your taxes also.

Residing here you can put your daughter in a state school


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## SteveHall (Oct 17, 2008)

You need specialist advice on a couple of issues and I have a couple of good contacts in Valencia - try Graham Hunt [email protected]. If he does not feel qualified - I am sure he'll give you the details of John Knight. 

BTW Graham has put 3 children through school in Spain and I am sure he will agree with me - at that age state school is the answer, 

Good Luck 

Steve


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## lordemsworth (Nov 16, 2008)

Stravinsky said:


> Well heres the answer to a few of your questions
> No, residencia doea not give you access to health care. You can get temporary cover for up to 2 years by getting an E106 from the DWP, but after that if you dont contribute to the system then you will need private care. Being a resident here of course, are you not going to be contributing NI payments to a system in the UK you can no longer use?
> 
> You need specialist help on the tax situation but in general if you are employed and living here then your tax should be paid here on your income. But there seem to be so many variables that professional advice is important
> ...


Thanks very much - by the way what is NIE? Is it different to the Resedencia?


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## lordemsworth (Nov 16, 2008)

SteveHall said:


> You need specialist advice on a couple of issues and I have a couple of good contacts in Valencia - try Graham Hunt . If he does not feel qualified - I am sure he'll give you the details of John Knight.
> 
> BTW Graham has put 3 children through school in Spain and I am sure he will agree with me - at that age state school is the answer,
> 
> ...


Thanks very much - I'll definitely contact Graham.


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## Stravinsky (Aug 12, 2007)

lordemsworth said:


> Thanks very much - by the way what is NIE? Is it different to the Resedencia?



Yes, but as I say .... I believe they are on the same form now
NIE is a sort of tax identifier. You'll need one to do a lot of things here such as rent a house, buy a house, open a bank account (in some banks) etc etc


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