Living abroad tips and hints for money savers

droopsnout

Sounds sensible to me!!

So, do you mean, if I bought a place in Spain, then lived four months there, plus four months here in France, plus four months in the UK with relatives, I wouldn't have to pay tax ANYWHERE at all?

Or, if I lived in my home in France for 180 days, lived with rellies in UK for 180 days, and went on holiday elsewhere for 5 days, I'd not have to pay tax anywhere?

I receive a pension from HMG. I'm sure they'd tax it wherever I live. LOL.

As for your own savings, I think you're right to save in the UK. I don't know for sure which country has the best interest rates, but I suspect the the UK would be high in the list at the moment. Suggest you consult the best buys that Martin suggests here. As you pay no tax, you should be able to avoid paying any that is normally deductable from bank and building society accounts.

Are you in a trade union? Don't the unions have all the info you need on this sort of topic?

I think what you're asking may be a bit specialised for us here.

seven-day-weekend

droopsnout, Government pensions have to be taxed in the UK - you don't have a choice! My husband's Teachers' Pension comes into this category and so will my Local Government Pension when I receive it in 2014.

Other income I think officially you are supposed to have taxed in the country of residence.

droopsnout

seven-day-weekend wrote: »

droopsnout, Government pensions have to be taxed in the UK - you don't have a choice!

Exactly!! Mine's a teacher's pension, too. I was hoping monstrum had found some sneaky way of avoiding the tax!! OK - it has to be paid, but if there's a way of reclaiming it ... Just a dream, of course!!

monstrum

Naughty people, if you are working you have to pay tax somewhere, I and the Portuguese that work with this company opt to pay tax in the UK for reasons I explained earlier, and seven-day-weekend, I think you are correct if you are living and working in that country, but if like me, you spend a minimum of six months at sea, outside UK continental limits but pay UK tax, then the rules change a little.
Thanks to all who replied.

droopsnout

OK, OK ... Why am I naughty but you're not? You're earning and NOT paying tax. I'm getting a miserable pension and I AM paying tax.

On the one hand, you say that if you're earning, you have to pay tax somewhere - but on the other, you say that you're paying it and reclaiming it. Where's the fairness in that?

Just who is the naughty one here? Do you mean that if I sat in a rowing boat for a certain number of days a year, I wouldn't have to pay tax?

And I note there was no response about what your trade union might advise?

OK, own up. You're winding us up, aren't you?

EdInvestor

The rules on govt service pensions: can be paid gross of tax in some countries.

http://www.hmrc.gov.uk/cnr/uk_gov_pensions.htm

Note: only 5% tax payable on pensions in Cyprus, don't all rush.

droopsnout

Don't think that affects me personally in any way, but it's very interesting, nonetheless. Thanks for posting, Ed.

monstrum

OK Droopsnout, here´s my take on it, as far as I know the 183 day rule was originally brought in to favour the head honchos of big business, those guys who spent more time out of the country than in, it just so happened that your simple sailor fell into the same category, and 183 days out of the country was never going to be an option for the average worker so the government of the day was content to let a small % of people who they never intended to benefit from it did so, is it fair? well if you think not try looking at it this way, why should your average sailor who lives in the UK but spends more than half the year out of it pay the same as the guy who works in your high street bank or your local school? after all, they have the opportunity to use every amenity that tax is used for, happy jack does not have that opportunity, as for myself, if I worked for a Portuguese company I would have no say in the matter, I would have to pay Portuguese tax, but the same 183 day rule would still apply.
As for sitting in a rowing boat for 183 days, well it would depend on who owned the boat, if the owner had an office in the UK, the salary you were on, Ports visited etc, plus it does get a little bit uncomfortable at times, oh, and wet, but if you satisfied our beloved taxman that you were not working a scam then i´m sure he would reimburse you.
Sorry, I missed the question about the trade union, I have been at sea for 39 years and have never met anyone who has asked the union for advice on tax matters, in fact most of us only belong to the union for the legal backing it provides in case of collision/oil spill etc, for tax matters most of the people I sail with use tax consultants just to get their tax back, so in short, I wouldn´t trust their advice gift wrapped.
Finally Droopsnout, no I am not winding you up, seriously, I was going to ask about government pensions but Edinvestor answered that one before I could ask.
Regards.

droopsnout

OK, cheers, monstrum. I appreciate the good humour of your reply!

You realise, of course, that the rowing boat scenario was also light-hearted.

And by the way, I'm sure that, along with others here, I appreciate that your way of life is different, and it's not one I would necessarily go for myself (though I may have done 30+ years ago!) So thanks for the work you do and the risks you take at sea.

EdInvestor

seven-day-weekend wrote: »

Well, we got a free upgrade to one of the cabins you mentioned and are now in the UK. The cabin had a sea view through TWO windows, a tv with English channels on, a king-size bed, a free bowl of fruit, two free bathrobes and tea-and coffee-making facilities.

Luxury and well worth the price we paid (although had we have paid the full price it would have been £150 more).

Curiously, there is a travel agent near me who offers a return "mini-cruise" Portsmouth-Bilbao for 79 quid per person in a shared cabin.

I'd quite like to go to Bilbao to check out the new Guggenheim museum, but I wondered about the crossing.The Bay of Biscay used to have a reputation for being rough and uncomfortable - but that might have been partly to do with the standard of vessels years ago..

How did you find it?