Moving to Spain, letting my house

Scarum

Seven day weekend.. thanks for the sound advise, this is what I am after.

With 20 years of private pension under my belt plus NI contributions, things on that front are fine. I would plan to continue to contribute NI to the magic 30 years entitling me to the state pension.

I can speak some Spanish and as you can guess, I will be learning it a lot more, besides my GF is Spanish! I am in the know of certain jobs for well spoken native speakers (like myself).

seven-day-weekend

Seems you'll be OK Scarum, so many expats are not.

I wish you well in your new life.

EdInvestor

It's essential to get a decent agent if renting from abroad.I was always able to find one for 10% plus VAT.

You need a "Non Resident landlord certificate", obtainable from HMRC, otherwise the agent will be required to deduct tax from the rent.

After costs, rental income normally comes in under the UK personal allowance - not sure whether the Spanish will want a slice.

Be sure to open any bank/savings/broking accounts you need before departure as it's v.difficult to open new UK accounts once resident abroad.

seven-day-weekend

Yes, forgot to say, depending on your circumstances you might be classed as Spanish tax resident, and you will have to declare it to the Spanish authorities, but you will only pay it in one country.

speedtwin

You need to apply for a referance No from the inland Rev which give permission for the agent to pay the L/L in full less fees and if you change agents you need to apply again it is only good for that agent.

It only applies if the landlords normal place of abode is not in the UK he will normally considered by the inland revenue as non- resident for taxation purposes.

Under the Income Taxes Management Act 1970 as amended by the Finance Act 1995 the agent will be required to withhold tax at 22% (going down to 20% soon i think) if he doesnt have the referance No. If the agent doesnt deduct the tax when he should the revenue can chase him (not the L/L for up to 6 years

If the L/L is abroad for more than 6 months and the tenant pays rent direct to the L/L THE TENANT becomes liable for the tax on the landlords rental income if it exceeds £5200 pa. Joint L/L's would be exemp up to £10400 pa. The tenant should be told in writing to take tax advice or contact the revenue before signing the tenancy.

Some L/L try to get round this by having rent paid into UK bank, suppling UK address (friend or revative) and a Uk landline No (not mobile).
still a risk though

Scarum

All good and useful info, thanks Speedtwin.

Gross rental income would be £7200 but after agency fees, insurance and allowable for tax I am guestimating a net income of £5000 a year so I think that works out rather well on the income tax implications. The double taxation treaty with Spain should mean I will not have to pay any further tax on this income alone, I think!

digiman97

The best of luck to you moving to spain,i really want to do that as well i am trying to sell my house at the moment,i don't know if my dream will become reality though because i need to find work also and learn spanish.

bigjoe

seven-day-weekend wrote: »

Well paid, permanent jobs are hard to come by in Spain, especially rural Spain, and especially for expats and I have seen so many expats trapped because they can't make a living in Spain and can no longer afford to get back onto the UK property market. Keep your house as a bolthole.

This has happened to my sister and her husband. They moved to Spain two years ago after selling up here, but couldn't get enough work and have run out of money. The problem is that they have sunk all their money into their Spanish house and have had it on the market with four agents for three months now and not a single viewing! They are now talking about just coming home and leaving the house in the hands of the agents to sell.

Sounds good all this relaxed lifestyle, plenty of sunshine, etc., but the reality can be very stressful.

dondonsinspain

hi - we live in Spain too, been here for over 7 years. We remortgaged our house in the UK to buy here and rent our house out in UK to pay the mortgage (well nearly). Anyway just to reiterate its difficult in Spain, especially if you need to work (a lot of expats don't), however my best advise would be to learn Spanish, and I mean really learn it, not just hola and gracias.... time and time again people come here with the wrong idea - thinking it will be a holiday all year round. IF you are like us and still working, and need to work its vital that you learn the lingo. Also there is a finance crisis here in Spain too, property prices are going down, and no one is selling very much or quickly.... think very carefully before selling up and coming over. If you can keep hold of a property in the UK do, its got to be a bolthold on the UK market - then if things don't work out for you at least you have something to return to. OH and one more thing it does rain here too!! The first year we were here I remember being like totally shocked when the weather changed around October/November, I had to send home for warm clothes - I honestly thought that it would be sunny and warm all year round DOH!!!

seven-day-weekend

Yes.....dondons, we came here to live 1000m up in the mountains in January and were amazed to find it was cold at night and that one thin blanket would not be sufficient! We had to buy duvets and even an electric blanket (I never had one of those in the UK).

But my most important advice always is, to try to keep a place in the UK if you can. Alsi, learn Spanish (Especially if you need to find work) and make sure you have money to live on before you come.

But the OP with his fluent Spanish AND a Spanish girlfriend should be OK, especially as he is keeping his house.

Sorry OP, this has gone off-topic.