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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15711
Experience:  International tax
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I am looking to moving to Spain and Turkey (about 5.5 months

Resolved Question:

I am looking to moving to Spain and Turkey (about 5.5 months in each). I will use a Turkish visa for visits there and as EU nation have no issue with getting into Spain.
I will continue to run a limited company based in the UK, so pay Corporation tax and any other required taxes in UK. The remaining month will be split between UK visits and other travel (USA and China).
My UK based accountant will ensure the businesses are dealt with in accordance with HMRC requirements. Trade will be primarily online (hence international)
Is there any advice on residency (UK or Spain, but not required for Turkey) that I should seek before leaving the country next month?
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
If you are present more than 183 days in Spain during one calendar year you will be a tax resident. You become liable whether or not you take out a formal residence permit (Residencia).
Any temporary absences from Spain are ignored for the purpose of the 183-day rule unless you can prove that you are habitually resident in another country for more than 183 days in the calendar year.
If you are resident in Spain you will be liable for income, capitals gains and succession duty (inheritance tax) on your worldwide assets.
There is a new Spanish ‘disclosure’ rule. This means that Spanish residents and expats living in Spain will have to declare all relevant overseas assets worth more than €50,000. This includes bank accounts, property and life assurance policies. This is all under the new "sharing" agreements countries have entered into.
There is still a Double Taxation Convention that covers the taxation of individuals so your UK based accountant will be able to use that for you.
From January 1, 2015, the standard tax rate for non-residents was set at 24% from the previous 24.75%.
I sincerely ***** ***** information is helpful.
Customer: replied 2 years ago.

Thanks, ***** ***** I have this, but am not sure if I am missing something. I Plan to stay in Spain for approximately 165 days per year, with a similar amount of time in Turkey (2 x 60 to 85 days per each 180 day period as per visa allowance). The remaining time could be anywhere but includes the UK.

So with my time frames I do not become a tax resident (less than 183 days total in Spain); I am not a tax resident in Turkey (similar reasoning) and while I will retain a residential address in the UK my time there will be limited to 30 to 50 days per year.

My assumption is that through business connection to the UK, I will retain my tax residency here.

I currently pay tax in the UK (business and personal) and I submit and pay taxes in Spain based on property owned.

From what you have suggested as long I do not overstay my time in Spain (i.e. less than 180 days) I should continue to be taxed as I am at present.

Am I making too much of this and it is really a simple solution?

5 stars so far for help and promptness.

Expert:  TaxRobin replied 2 years ago.
Yes, you will retain residency in UK and you will avoid residency in Spain as long as you do not stay there and keep your center of activity in the UK.
You are not "making too much of this". It is very important to know your tax situation prior to making choices.
Thanks for the "5 star" comment.
You are most welcome.
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