With the rainy British weather still amongst us, the thought may cross your mind of packing your bags and relocating somewhere sunny.
The warmer climate, rich culture and geographic proximity make Spain an attractive destination for retirees, remote workers and families.
While the idea of moving abroad is exciting, the legal realities can be overwhelming if you are unfamiliar with Spanish systems and regulations.
To help you manage these challenges, Palmers Solicitors works in collaboration with Grupo Salvador to provide joined-up legal and tax advice that makes your move to Spain as stress-free as possible.
Our Supervising Director, BJ Chong, investigates the main considerations before relocating and how Grupo Salvador can support you.
Residency rights and visas
Buying property in Spain does not automatically grant you residency rights.
You will need a valid visa if you intend to live in Spain for more than 90 days in any 180-day period.
There are several visa options available, including the Non-Lucrative Visa for retirees and those with passive income and the Digital Nomad Visa for remote workers.
If is important to understand the legal requirements for your visa, as applications can be refused if your documentation is incorrect or the eligibility criteria are not met.
Buying property in Spain
For obvious reasons, it is important that you obtain legal advice to make sure your property is correctly registered and planning permissions and contracts are valid.
Legal checks should always be completed before you commit to a purchase, as problems discovered later can be costly and difficult to resolve.
Estate planning and inheritance
Spanish succession law includes forced heirship rules that differ from UK inheritance law.
Without careful planning, your estate may not be distributed as you hoped and a Spanish Will may be needed alongside a UK Will to cover your assets overseas.
Inheritance Tax (IHT) in Spain varies by region and the relationship between the deceased and the beneficiary.
While some regions, such as Andalucía, offer generous allowances, cross-border estates require careful consideration to avoid unnecessary IHT liabilities.
Tax residency and worldwide income
Before moving to Spain, you must understand Spanish tax residency.
You are generally considered a tax resident in Spain if you spend more than 183 days in a calendar year there or if your main economic interests are based in Spain.
Once you are a tax resident, you must declare your worldwide income, which includes your pensions, rental income and investments.
Failing to plan properly can result in unexpected tax bills.
Timing is particularly important if you are selling property in the UK or elsewhere, as selling after becoming a Spanish tax resident may put you at risk of Spanish Capital Gains Tax.
Bureaucracy matters
Relocating to Spain also involves obtaining a NIE number, registering for residency, arranging healthcare, opening a Spanish bank account and understanding local taxes and regulations.
How can our collaborative services support your move to Spain?
Through our collaboration with Grupo Salvador, clients can benefit from UK and Spanish support.
You can be reassured that we can handle all of your home based issues from selling your home/business here whilst Grupo Salvador provides expert, English-speaking assistance with:
- Spanish conveyancing and estate agency
- Non-resident and resident tax
- Spanish inheritance and succession tax
- Honorary consulate services
Our expert advice on estate planning and Wills can support you so you can achieve a successful move.
Working with experienced professionals in the UK and Spain can help you avoid common pitfalls and enjoy peace of mind as you start your new chapter abroad.
If you are considering moving or buying property in Spain, contact BJ Chong or Ricky Valks for more information to start the process
