Resident or not?

[Salbag777]

I thought I read somewhere that if u spend more than 3 months here you qualify for residency? I really don't think I should have to pay the non-resident tax?

[beachlife]

I thought I read somewhere that if u spend more than 3 months here you qualify for residency? I really don't think I should have to pay the non-resident tax?

If you stay for more than 3 months you are suppose to register to say you are here and you get a sort of resident lite, this is a non fiscal residence as you are in effect just saying you stay here for part of the year but you are a resident of another country. If you take out the full residencia then you  become a fiscal resident so are not liable to UK tax but then you are liable to Spanish taxes. Also a whole lot of worms are up turned if you are a Spanish fiscal resident all earnings/interest etc worldwide are liable to Spanish taxation and you are not automatically counted as a member of the NHS so you would need a Spanish E111 (although in the past this did not seem to be a problem, likely this will change). You have 2 years after becoming a fiscal resident where you still have automatic access to the NHS. Lots of other things like you will lose UK credit rating so will not be able to get credit in UK, not allowed to apply for UK mortgage until you have been a UK resident again for 2 years etc etc. I digress from your original question.

If you are staying here for less than  3 months there is nothing you are suppose to do if you are staying for longer than  then you are suppose to register (but many people do not do so).

From 28 March 2007, Royal Decree 240/07 requires that all EU citizens planning to reside in Spain for more than 3 months should register in person at the Oficina de Extranjeros in their province of residence or at designated Police stations. You will be issued an A4 printed Residence Certificate stating your name, address, nationality, NIE number (Número de Identificación Extranjeros) and date of registration.

[Salbag777]

Thanks! I don't stay 3 months in one go but more than 3 months altogether in any year! Think I will carry on as a non resident!! And just pay my tax! I just begrudge it as I am a non tax payer in uk and on a low income! Lol!

[SheilaW]

you are not automatically counted as a member of the NHS so you would need a Spanish E111 (although in the past this did not seem to be a problem, likely this will change).

But you can only get a Spanish EHIC (the current name for the old E111) if you qualify for one; and to qualify for state health cover here in Spain you have to contribute to the system (i.e. have a job or run a business) - it doesn't just come as a gift.

You have 2 years after becoming a fiscal resident where you still have automatic access to the NHS.

Well, I can't swear to it as I left the UK in 1993 and long since lost any links with the NHS, but I really doubt that everyone has that right. I think there's something in place for those nearly at retirement age, but I think most people lose NHS cover immediately. You aren't supposed to be resident in both places, and you certainly aren't supposed to be taking out of the kitty in both places. Fair's fair.

[TamaraEnLaPlaya]

You have 2 years after becoming a fiscal resident where you still have automatic access to the NHS.

I think this may be referring to the Reciprocal Healthcare that you can receive in Spain/Canaries, funded by the NHS, when you become resident here. You have to apply for the relevant forms from Overseas Health Care team in Newcastle and use them to register for state healthcare here. I have a feeling this has a 2 year limit on it so may be what Beachlife is referring to.

[beachlife]

You have 2 years after becoming a fiscal resident where you still have automatic access to the NHS.

I think this may be referring to the Reciprocal Healthcare that you can receive in Spain/Canaries, funded by the NHS, when you become resident here. You have to apply for the relevant forms from Overseas Health Care team in Newcastle and use them to register for state healthcare here. I have a feeling this has a 2 year limit on it so may be what Beachlife is referring to.

Thanks Tamara thats the information I got from Newcastle when I researched whether it was worthwhile applying for residency in 2010.

Sheila is also correct when she says its now the EHIC not the E111. However the point I was trying to make is  becoming a resident of Spain has its draw backs and needs to be considered carefully. I never said it was a gift that was the point I hoped I made (but obviously not) it has a cost if you apply for residencia ( the loss of lot of valuable rights in the UK). I`ve known people get residencia in order to get the travel discounts, not considering the full ramifications of doing so.

[SheilaW]

You have 2 years after becoming a fiscal resident where you still have automatic access to the NHS.

I think this may be referring to the Reciprocal Healthcare that you can receive in Spain/Canaries, funded by the NHS, when you become resident here. You have to apply for the relevant forms from Overseas Health Care team in Newcastle and use them to register for state healthcare here. I have a feeling this has a 2 year limit on it so may be what Beachlife is referring to.

Yes, I think it was that, but it's only for those who've already taken early retirement in the UK, just to tide them over until they retire. It makes sense, as they will be covered by the UK once they retire so it would be added paperwork for everyone if they were to lose UK cover for such a short time.

But it is only for a few cases. I didn't think you were advocating grabbing handouts with both hands, Beachlife , but it might have seemed that way to those desperate to come out and yet keep their free UK health cover.

[oystercatcher]

There's a whole lot of overlap here, with different rules for different purposes using the same words.

If you are physically present in Spain for 183 days in the calendar year you are tax resident and pay tax as a Spaniard, with complex (but logical) rules to give credit for tax paid in other countries where any income actually arises.

The Non-resident's Property Tax is for those not tax resident and matches a similar tax on Spaniards who have a second home. (After all if you're not tax resident you must live somewhere else, not in Spain, so this is your second home.)

Residencia - which is an outdated title - is nothing to do with tax. It's a notification that you're here for more than a continuous three-month period.

The EHIC is for 'travellers', not residents of foreign countries. If you are 'visiting' Spain and intend to return to UK you are covered by your UK EHIC no matter how long your trip - but a long indefinite stay and the trappings of being here permanently, and no return ticket booked could be used to argue that you're not 'visiting'.