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Author Topic: Residencia  (Read 3269 times)

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gigi

Residencia
« on: August 08, 2006 »
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  • Tanemera

     Posted: Wed Jul 19, 2006 9:04 pm
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    We have an apartment in Los Gigantes and have NIE numbers. Can someone please advise me of the pro's and con's of applying for a Residentia? We spend 5 months a year in our apartment, during the winter, and anticipate (hope) that this will increase as time goes on. We are retired UK citizens and normally reside in the UK. We would always wish to maintain a UK property. People we have asked about this have given conflicting answers, so any inputs from people who have taken the step would be much appreciated.
     
    gigi Posted: Wed Jul 19, 2006 11:41 pm    
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    Everyone's cases are different and you should seek PROFESSIONAL advice and not really ask this kind of question in open forum, but having said that as a rule of thumb ONLY you have to be out of the UK to be considered not resident for tax purposes and for social security benefit purposes for 183 days or more
    http://www.hmrc.gov.uk/cnr/

    http://www.hmrc.gov.uk/cnr/faqs_general.htm

    some basic info benefits info here http://www.dwp.gov.uk/
    http://www.dwp.gov.uk/publications/dwp/2003/gl29_dec.pdf#search='social%20security%20living%20abroad%20uk'

    So if you are there for 7 months in any one tax year you are still considered a UK resident.

    As far as a Spanish residencia is concerned the rules changed dramatically in 2004 so that an EC citizen who is working or is self employed in another member state (including Tenerife- being part of Spain) is not required to apply for a residence permit, some still however for convenience choose to do so.
    Non working residents, retired people or dependants of the workers or self employed are required to apply.

    You may stay in Spain for continuous periods of up to 90 days without regulising your situation as you are still considered to be a holiday maker - in reality people do stay for longer periods

    If you were to apply for a residencia you would have to prove that you were either a pensioner who had elected to take their retirement here and were in possession of an E121
    or you were unemployed and job seeking here and were in possession of an E106,
    or you were legally employed or self employed and paying National Insurance contributions here
    or you had taken early retirement here and were not working but had sufficient means to support yourself including private health cover
    or you are the legal dependant of any of the above and you still have to provide numerous other documentation to prove your status/situation/ address etc to accompany the appropriate application which I wont go into here because as I said each type of application is different

    This is a VERY complicated subject and I write these comments as a brief guidline only

    British nationals can obtain a lot of information from the UK government Inland Revenue and Social Security offices - they will advise on a particular person's status and eligability for health cover abroad etc, this should be your first point of call

    Hope this gives you food for thought
    x
    GiGi

    Tanemera
     Posted: Thu Jul 20, 2006 9:03 am    Post subject: Residetntia  

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    Many thanks, Gigi, for your informative reply. I think this answers all my questions. I hadn't realised how complicated it is!
     
     
     
     
    el observador Location: Deepest Rural Hampshire
     Posted: Thu Jul 20, 2006 10:50 pm    Post subject:    

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    Hello,
    I am not a resident nor intending to be because of the complexities as mentioned by Gigi.
    As stated professional advice would be a 'must' ! Taxation of assets looks very complex.
    A good strating point to seeing what you may be letting yourself in for would be to purchase a copy of 'You & the Law in Spain' by David Searl.
    Regularly updated it makes many things understandable.
    Good luck.
     
     
    gigi Posted: Wed Jul 26, 2006 11:34 am      

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    One thing I did leave out of my original diatribe (I know I do go on LOL!!) was that regardless of whether residencia is applied for if you stay beyond 90 days you have to subscribe to the municipal register at the town hall or at the sub office in Playa Arena (Playa San Juan if you are in Guia de Isora municipality)

    The law on this changed as well in 2003 and you now have an obligation to renew that inscription every 2 years.

    Ineteresting article on the statistics resulting from these municpal registers here
    http://www.losgigantes.com/outnabout.htm
    but I dont know if anyone will read it because it doesnt involve backstabbing, baracking or bars- which is the only thing some board members seem interested in!
    x
    GiGi
     
     
     
    Tanemera
     Posted: Wed Jul 26, 2006 8:29 pm    Post subject:    

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    Thanks again to Gigi and also to El S for their inputs. The link to immigration statistics makes interesting reading, particularly the bit about the 500,000 immigrants who have "dissapeared". I am now satisfied that applying residentia is not right for us as we plan to continue to reside in the UK for a substantial part of the year.
     
    el observador
    Location: Deepest Rural Hampshire
     Posted: Sun Jul 30, 2006 8:26 pm    

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    « Last Edit: January 22, 2007 by GiGi »

    Offline MSSMILEYBBW

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    Re: Residentia
    « Reply #1 on: September 22, 2006 »
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  • If you apply for residentia then the Spanish Government will want to know of any assets you have in England and then that property will also be taxable to them so DO NOT DISCLOSE.

    gigi

    Re: Residentia
    « Reply #2 on: January 22, 2007 »
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  • I thought someone else might have come back on this, but as they havent I thought Id better point out that tax evasion is illegal (cos were a law abiding bunch at Los Gigs Dot Com LOL)  in which ever european state you reside in - be interested in any 1st hand experience of how being a Spanish resident has affected anyone in that way.