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michaela74
15th Oct 2014, 10:34
Quick question for those living in Spain.
My partner and I are thinking about moving down to Spain with our two, very young, boys. I fly long haul for a large European flag carrier so the commute wouldn't be a problem as I have enough time off and I can also fly part time.
Could those in the know give me a rough idea about taxes and any stumbling blocks they came across. We're also thinking about sending the boys to an English school to start with, so any info. about that would be appreciated.

nalt24
16th Oct 2014, 09:06
About taxes, It will depend if workers of your flag carrier pay taxes in Spain or in the country of origin, like Ryanair workers do for instance.


If salaries are going to be paid under Spanish state regulations, note that taxes will be around 20/ 30 % of your gross salary approximately.


About Schools and so on, If you are going to live in either Madrid or Barcelona there are good british schools in both.


Hope that helps a bit. If not, write again, I will try to shed more light on the issue.

seasexsun
16th Oct 2014, 11:09
Depends what your salary is, it can go up to 45% for a good long haul pilot salary.

The Range
16th Oct 2014, 18:41
Taxes could be more than 45%. You will have to pay them in Spain if you spend more than 183 days a year there. But, how are they going to know that?
Marbella is a nice place to live and there are English schools.
You'd better talk to a tax advisor.

hunterboy
16th Oct 2014, 21:55
You will be liable for taxes in Spain if your wife and dependent children live there. As for finding out, the G5 have just signed an tax information sharing agreement . Guess it depends if you feel lucky?

Aksai Oiler
19th Oct 2014, 11:35
You have been given good advice above, the most pertinent is to seek advice from a qualified Spanish Tax advisor. I have an accountant do my return beacuse it looks nightmarish, I ensure I am out of Spain for more than 183 days, even though my family is there, to ensure I qualify for the necessary tax break.

I live 100km east if Jerez, in rural Spain this is more a challenge, my 6 year old goes to a Spanish school, she is tri-lingual and is severly criticised because she is more fluent in English as a native speaker than the locals. Dealing with the local institutions such as the Ministry of Interior and the local town hall can be challenging if you dont speak Spanish. On the coast, around Marbella, Malaga, Jerez and Seville there are English schools, however, I cannot comment on the quality.

N707ZS
21st Oct 2014, 16:46
One other point learn to speak Spanish to a good level.

cheese bobcat
22nd Oct 2014, 20:22
As a retired airline pilot and having retired to Spain, I cannot but agree with most of the above.

If you are receiving a full airline pilot's salary, there is probably nowhere in the world where you will not be taxed at a very high rate. The tax in Spain is different to the UK but not much higher. As for the kids, if you are coming over here, do send them to a Spanish school. They will be fluent in Spanish in an embarrassingly short time and that will only be an extra qualification when they grow up.

On the personal side, I know of a pilot who works in Japan and his family lives here (month on, month off). It's a great place to live, not perfect by any means but the weather makes up for a lot.

It's late October and the temperature today, not excessive but a comfortable 25 degrees during the day and not a lot less at night.

Do think long and hard about it, but I highly recommend it!

emoroid
26th Oct 2014, 09:39
Been in Spain for 12 years but never over the 183 days. If you are looking to buy a property check the Catastral (Property Details) number and details on the internet. If anything is wrong find another. The local taxes (council tax, waste tax & car tax) are a lot less than the UK. Learn Spanish and believe nothing any of the local sages tell you. Find out everything yourself.

bobwi
28th Oct 2014, 10:22
(Tax)legislation changes all the time, what was correct last year may be different this year. I used to do it myself but now need a tax advisor. The best advise I can give you is use a good tax advisor (gestor). Follow the law and stay out of trouble.

Rent first and get to know how things work in Spain. Prepare well before buying.

My main home and family is in Spain. However, I don't spend 185 days in Spain but being a pilot I don't spend 185 days in any country. The 185 days is just one of many variables used to judge where you should pay tax.

Use a good tax advisor in the UK too. Also the tax year in Spain is different from the tax year in the UK which complicates things more. Sofar, I get more questions/work from the Spanish tax authority than from the British.

hunterboy
29th Oct 2014, 10:37
Unless you are legally separated, if your wife and dependent children live in Spain, then you are liable to pay in Spain. Whether you get caught if you don't pay is a different matter. People have been living here for years and not paid a penny.
Be aware that Hacienda are even checking electricity and gas bill to look for people that say they are non resident but have steady utility usage throughout the year. In a nutshell, the government needs the revenue.

speed_alive_rotate
29th Oct 2014, 12:04
Sorry if this is a silly question, but are the tax rates the same between the Spanish mainland and say for instance the Canary Islands or Majorca etc?? Also it seems like a lot of negative feedback but I know people are just trying to make others aware of factors etc, with the amount of pilots heading out to Spain surely the benefits must out weigh the negatives?? Regards SAR

barrel
29th Oct 2014, 17:16
Hi,

It is not a silly question. Balearic Islands Region (Majorca) has the same tax system as spanish mainland but tax rates are different in each region, exceptions are Basque Country and Navarra with their own tax systems.

Canary Islands Region has the same tax system as spanish mainland but it is considered a Special Economic Area with some tax exceptions and reductions, e.g. reduced VAT (cheaper petrol and tobacco,etc).

I recommend you to ask a spanish tax advisor to be sure you make things right because now, due to Spanish Crisis, Hacienda is like an angry watchdog.

Hope you enjoy a beautiful life in Spain.

speed_alive_rotate
29th Oct 2014, 17:22
Great Information, thanks @barrel.

fullstep
20th Nov 2014, 13:52
Hi there,

I lived in the UK and now am back in Spain.

As somebody else already pointed out, you will be bound to pay income taxes in Spain... and Taxes here are significantly different to the UK (fiscal year = calendar year). I did have a UK tax advisor and I would strongly suggest to have a Spanish one (by the way, they cost a fraction of the UK ones)

Income Taxes... expect them to be higher. Top rate will vary from region to region but will go from min 52% to 56% in Catalonia (and maybe somewhere else).

Council Taxes... a joke compared to UK ones. Depending on the property you own, but around €1,000 per year.

British Schools. There are a number of good options (Madrid, Barcelona, Malaga, etc.). Tuition fees between 500 and 1000 per child per month. Don't worry about the kids learning Spanish because they will, no matter what school you send them to. Playground language is Spanish!!!

Weather. Well, there is just no comparison... but do expect some cold weather in the winter if you live away from the sea (yes, it does snow in Spain... but we grit and plough our motorways :))

British expats. There are a number of British citizens living by the sea in Spain. I would say mainly Murcia, Alicante and Malaga (the biggest one) but would suggest you blend in...otherwise you will lose a lot of the culture.

Hope it helps

Cheers
fullstep

speed_alive_rotate
20th Nov 2014, 17:03
Very informative thanks @fullstep. "Tuition fees between 500 and 1000 per child per month" ... obviously private schools or is that the normal cost of education in Spain, seems very expensive? Regards SAR.

The Range
20th Nov 2014, 18:32
That's private schools. But you have "concertados" schools, which are private
schools that the state pay for you( part or all, not sure) the tuition, if you qualify.
And you have public schools, which are free.

speed_alive_rotate
20th Nov 2014, 19:16
Thanks @The Range.

vikdream
21st Nov 2014, 09:46
I am a Spaniard flying in the Uk and originally from BCN. I can answer a few of your questions:
- income tax: I am not an expert but I am 99% sure you will have to pay income tax in Spain. As others have suggested, the system is quite similar to the UK one, taxes a bit higher (especially "Seguridad social", which is our National Insurance).
- schools: it depends on how much money you can spend. I would not recommend public schools. Private schools are really expensive, but you will find that they are very good and British schools have got loads of good reputation. "Concertados" schools are very good as well, and they are normally paid 50/50 between you and the Spanish government. A rough idea about prices is: private 500-1000€ a month, concertado around 300 and public schools are free.
- language: somebody complained that you need to know Spanish for almost everything, especially dealing with the government. Well this is the case in every single country in the world. Go to France and try to speak English, go to China and try to speak English. I am Spanish and I don't use Spanish when going to hospitals in London or speak to the DVLA. English is used as the international language in many areas but it's not an official language in many many many countries, so you will have to get used to that. As somebody said, your children will learn Spanish very quickly.
- health system: I thought the public system was rubbish, but having suffered the British one, I would say it is not that bad. However, I would strongly strongly reccomend to have a private medical insurance, which is a bit expensive but worth it. Private hospitals and doctors (at least in BCN) are extremely good, and the overall statistics for illnesses like cancer beat the ones in the UK (which are fairly poor to be honest). The private health system does not go through our GPs (as it happens in the UK), so they are extremely quick, with a good cover you will be seen by an especialist within a week. A good medical insurance can be around 50-80 euros a month if under 55 and expect double of that when older.
- areas: BCN is a fantastic place to live. You will not find many brits here (although you will find that many people speak English, especially young people) but there loads of people from different countries. Good schools, good hospitals and loads loads loads of things to do. Fantastic beaches close by and even ski resorts. We have got many many flights to the UK every day, which is a bonus (EZY, BA, RYR, Norwegian, MON, VLG, Jet2...). If you want to find brits, you will need to go south (Malaga being the best one).
- buying and renting: as somebody suggested do not buy before renting. It is not only the paperwork, it is the fact that you will need to know the area. Tourists are normally atracted by areas that we hate. Living in the centre of Barcelona (Born)- and many cities - is a nightmare, and the other day I watched "A place in the sun" and people were desperate to find a house there! Know the city before deciding and know public transport, which is fairly good and much much cheaper than in the UK. Having said this, properties are now very cheap in Spain, so it is a good moment to buy.
- weather: ... that's the reason why I am part year working and enjoying the winter over here!

Finally, deciding where to live is extremely important. Different areas in Spain have got different personalities and culture. Catalonia is very "European", people are switched on, hate bull fighting and flamenco, but they speak another language (Catalan), which you must take into account. The South (Malaga, Sevilla) is very laid back and passionate for what Catalans hate. Madrid is something in between and the north is just quite similar to the UK weatherwise.

Good luck, Spain is a fantastic place to live and you will find there pretty much everything you need (except for Cadbury chocolate and good lemonade).

seasexsun
23rd Nov 2014, 06:46
If you go to a foreign country then you have to (you MUST) learn its local language and speak it fluently. In Spain, there is no exeption and if you don't do any effort you will just be another f****ng guiri that deserve no respect from neighbourhood.

Capetonian
23rd Nov 2014, 07:08
It is perfectly possible to live in a country without learning its language. You may not need or want to have any intercourse of any form with the locals, you may work elsewhere, or in an environment where you only need your own language, and so on. I know plenty of people in this situation.

Whether or not you derive the maximum benefit and enjoyment by not speaking the language is another matter, as is whether you are showing respect to your hosts, but to say you must learn the local language is wrong.

The argument that 'you are a guest' in that country is baloney too. If someone lives in another country, pays their dues and charges, and respects the laws and environment, they are no more a guest than someone who is paying to stay in a hotel.

speed_alive_rotate
23rd Nov 2014, 09:00
Getting little bit off topic. However I find @seasexsun comments " f****ng guiri" a rather derogatory way of describing people who contribute to over 6.4% of Spain's GDP and over €62 billion annually. However I love Spain and believe if you are going to live in a country it is common courtesy that you learn the language, yes it is possible to live there and not, but why should the locals have to speak your language in their country just because you are too lazy!!!!!

vikdream
23rd Nov 2014, 12:25
Speed Alive, you are absolutely right. However, I have known dozens if not hundreds of foreign people in Spain and all of them used to speak Spanish, Catalan or both. Attacking foreign people is wrong, but not learning the language in a foreign country just because you "may not need or want to have any intercourse of any form with the locals" is very disrespectful and naive.

Except very few exceptions (countries with English as the second language, places like Dubai or companies providing their employees with absolutely everything they need) you will not survive in the long term without speaking the local language. You will be fine going to the supermarket or eating in restaurants, but go to hospital, discuss with the local HMRC, try to buy or rent a flat or anything requiring some paperwork and it's game over. You might choose not to interact with people living there (which, again, is disrespectful) but you don't want to have (for instance) a heart attack one day and not being able to explain to the doctor what's happening to you.

speed_alive_rotate
23rd Nov 2014, 13:37
I am totally in support of your comments @vikdream. I personally believe you should learn the language in the country you are going to be calling home for whatever length of time. And to be honest ask yourself how many Britain's or Irish would tolerate someone living in their country and after a few years they still cannot speak English, simple they wouldn't tolerate it!! For the record I am Irish.

cavortingcheetah
23rd Nov 2014, 17:46
You need quite a good grasp of 'Spanish' and its vernacular to be an aficionado and the regular contextual exercise of that knowledge is one of the great joys of living in Spain. Of course, further practice can be gained in moving through South America following the carteles during the long dank and dreary European winter months.

Thorond0r
23rd Dec 2014, 00:13
Just another tip. The're just 2 places to live where you will pay less taxes for your income: Ceuta and Melilla.
The islands have regular taxes for your income.

About "buying": Balearic's have regular VAT like mainland (21%) and Canary's have a reduced VAT (7%).

That's about taxes. Cost of living is another tale.

Cheers from a Spaniard.

FlyTCI
26th Dec 2014, 12:49
Maybe a bit off topic and has nothing to do with aviation, but I am a European planning on moving to Spain. My previous country of residence was the US and I would like to bring my car over from there. I'm looking for some information to make the decision whether or not it will be worth the hassle. I really like my car and it will last me a long time, supposed to buying something unknown with potential issues.

When a friend of mine moved to Spain from Dubai, customs asked him why he did not bring his car with him along with the rest of his goods, as he would have been able to import it free of duty. Is that still the case if you have owned the car more than one year?

By the way, the car is made in Germany so is mostly compliant with euro regulations. What is not I will ensure to comply with.

Nightstop
27th Dec 2014, 05:59
Check your PM

Offchocks
28th Dec 2014, 20:12
Having flown for 40 years I am now retired. What is the tax situation for a retiree who is on a self funded pension? Are the investments of the pension scheme and the pension payed to the retiree taxed?