Resident or not

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08 Sep 2013 14:18 by camposol Star rating in Camposol. 1408 posts Send private message

There seems to be a trend, hinted at, not spelled out,  but strongly hinted at,about becoming non resident in Spain  for tax while actually still living in Spain, obviously looking to avoid CGT on lump sums, pension pots, winnings etc from the UK.Once received, the person becomes a resident again.

How would anyone get away with this?

It would mean living under the radar for a long time, having to cheat and lie and be illegal

Their eligibility to free healthcare would go

If they sold their house while"non resident" 3% would be retained by Hacienda

Signing back  on the foreigners register is now more complicated, so why put oneself through this ordeal?

They would have to deregister from the Spanish tax system, then reregister  when they'd "come back"Lots of bureaucracy again

Are tax accountants advising their clients to do this to avoid CGT?

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08 Sep 2013 15:22 by elaineG Star rating in Spain . 409 posts Send private message

......................  about becoming non resident in Spain  for tax while actually still living in Spain


I would think that is a high risk strategy and could result in become a ‘resident in a Spanish prison’ in addition to losing a big chunk of ones assets,  and it costing a lot in fines.  It's a criminal offence, called fraud.

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08 Sep 2013 21:41 by guslopez Star rating in Lorca, Murcia.. 745 posts Send private message

You don't have to become a " non-resident", just a " non-tax-resident". easily done by leaving the country for more than 183 days.You then , theoretically , don't have to declare. It would come down to centre of economic interest.

The simplest way is to sign on the " Register for nationals/permanent foreign residents working abroad" ( This isn't its correct tiltr but I have forgottenwhat it is called ). Any sensible spaniard does this as it , removes you from the unemployment list, retains your right to healthcare, relieves you of the requiremnet to declare for spanish tax.

A permanent resident foreigner can be out of the country for , I believe,2 years before loss of resident registration.

Here it is;

Your continuity of residence is not affected by:

  • temporary absences (less than 6 months a year)
  • longer absences for compulsory military service
  • one absence of 12 consecutive months, for important reasons such as pregnancy and childbirth, serious illness, work, vocational training or a posting to another country.

You can lose your right to permanent residence if you live outside the country for over 2 consecutive years.

In all honesty, there are loopeholes galore for anyone who wants to go down that route.



Todos somos Lorca.

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09 Sep 2013 14:16 by camposol Star rating in Camposol. 1408 posts Send private message

You say becoming non tax resident is easily done-really? So, you have to leave your house in Spain,making sure it's secure and garden and pool maintained, find somewhere to live in UK, then there's the palaver of sorting bank accounts, redirecting mail etc, sorting healthcare. When you return you have to sort everything again.Sounds more like a nightmare!

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09 Sep 2013 14:31 by elaineG Star rating in Spain . 409 posts Send private message

Gus, if one is ‘Resident’ in Spain, then they are tax resident as they cannot be resident in Spain and resident in another country.  The 183 rule is not overriding, as you know, other conditions apply. 

As for the temporary absences, I believe what you quoted applies only to those who have ‘Residencia’ i.e. non EU citizens.

But I agreed to be non resident and non tax resident is easy,  one must leave Spain.  That is, become resident in another country.  So that is easy to achieve.

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