For many years we have been providing residency solutions for British nationals wishing to live abroad in a number of different European destinations including Spain. Our residency process starts by looking at how you might be affected by the UK statutory residency test which was introduced by HMRC in 2013 before determining the optimum time to leave the UK and establish your residency elsewhere.
By default you become Spanish tax resident if you spend more than 183 days in Spain in a calendar year or if Spain is your centre of ‘economic interests’ or your centre of ‘vital interests’. In the latter case if your spouse or dependent children live permanently in Spain you will be presumed Spanish tax resident even if you spend less than 183 days there.
Our residency experts will guide you through the process of exiting the UK and becoming resident in Spain or if you are already living in Spain, without having made a formal declaration, helping you rectify this situation.
Not only do you want to move seamlessly to the new country of your choice you will want to understand the tax implications of your move both in the UK and Spain and ensure that your financial arrangements are set up in the most tax efficient way possible. Our holistic approach to financial planning means that your expert adviser will help you in all of these areas to ensure a successful transition into the Spanish tax system.
Many of our clients wish to either work in Gibraltar and live in Spain or have homes in both jurisdictions. In the past it was all too easy to live under the radar in Spain and pay lower taxes in Gibraltar even if you were exceeding the 183 day period for tax residency in Spain. However, since the introduction of Common Reporting Standards Spain and Gibraltar have been exchanging tax and financial information with each other and a Treaty has now been ratified between the two countries setting out new residency conditions which could affect you if you have previously been tax resident in Spain but now wish to move permanently to Gibraltar.
We are able to give you first hand advice on the specific cross border tax issues between Spain and Gibraltar and how you can establish residency in either jurisdiction without falling foul of the authorities. We will help you be tax compliant in the correct jurisdiction for your circumstances and then show you the best way to mitigate tax and keep more of your hard-earned income or capital.