Is this possible?

As Camionpilot says, its only airports and sea ports that check passports etc. and at airports at least its only passengers from outside Shengen agreement countries like the UK. That's why we get herded into the tiny area with the passport scannners and other EU countries flights don't!
Once in an EU country there is no check where else in Europe you go to, its actually not allowed under Shengen, so you could be anywhere for any amount of time. Its only when you flag yourself to the authorities in some way that they take an interest.
They are now doing basic checks in Spain which is why we have all had to produce additional documentation to Banks to show we are tax registered in a particular country and not nowhere at all . . .
I know Brits that have lived and worked in Spain full time for over 12 years and are not residents.
Not something I'd risk doing, but many do

Well said Marcliff. Despite all this uncertainty of Brexit The Spanish government have said that the Brits will continue living here nothing will change as long as you are within the law

Good for you, Floydy, asking the question - and you're right, your friends are breaking the law.

Just to be clear about "Residency", as foreign nationals from another EU country, any of us living in Spain for more than 183 days in any one year must apply to be added to the "Extranjeros" (foreigners) list and obtain our green card - ex-pats have a habit of referring to this as "Residency". However, once the UK is out of Europe, we will then have to apply for "Residency", as do other non-EU foreigners living here. And don't you think that's when the Spanish authorities will be saying, "You want to live in our country? Show us your income tax returns....."!

I get sick to death of hearing British bigots carping on about Johnny Foreigner in the UK getting free this, free that, and then they do exactly the same thing in Spain. But I don't want the Spanish authorities to chuck out these people who don't think the laws apply to them, I want them to fine the law breakers - and as Marcliff indicated, the fines are huge - so then they will realise it wasn't worth cheating the system, cheating Spain and cheating the rest of us who are complying with the law and paying ALL our taxes.

Moving this topic on slightly... anyone out there who has made the ( formal ) transition recently? Any advice on this and especially on if there is specific timing to make it easier? Eg the Spanish tax year runs Jan - December. The UK system April to April. There's a double taxation treaty etc . I read somewhere the Spanish tax man doesn't do half years. So would it make most sense to formally go to be settled in January , just for all the sake of the paper work? If you went to be settled in March would they still count you as tax liable from the January? I know you don't do a tax return until the following year but are you likely to be clobbered by both tax regimes for an overlap period although if you don't do the Spanish tax return until the following year you might avoid that? Are there recommendations for a Spanish tax expert to help get all all the paperwork sorted or have people just used their lawyers as fiscal reps or done it themselves ?

No because you can't be taxed on the same income twice. If you have paid taxes in UK on income Jan to Mar then your earnings in Spain for the year will only be from April to December. (Well, that's what I did when I moved over)
I use my lawyers for my tax returns as they are listed as my fiscal reps. They submit the 720 (overseas assets) and income tax returns each year. I supply my P60 for my taxed pensions in UK and the advice on how much my non taxed pensions were paid.
Having been here legally (on the foreigners' list, padron, SIP and so on) for 7 years I haven't been liable for any tax on my income in Spain as it is only my state pension which gets looked at here and that is within the Spanish tax allowance. My pension incomes are taxed in UK and are only taken into account here to determine the tax level but are not taxed here.
If you have a non-government pension in UK, you should tell the HMRC you are no longer resident in UK and they won't tax you on them but you will get taxed on them in Spain.
One of my neighbours is in that situation and pays income tax here but no higher than he would in UK despite the higher tax free allowance in UK (he is over 65 and gets the low pay supplement on top of his allowance).

We moved here in July 2016. I thought we would be expected to do a "split year" tax return, like you'd have to in the UK, but our Spanish tax advisors, Abaco in Torrevieja, submitted on our behalf a Non-Resident return for 2016 and between April and end June this year, we will submit our first Residents' tax return in Spain in respect of 2017. As I receive a military pension, which has to be taxed in the UK, and my wife earns rental income from a property we own in the UK, we need the documentation from HMRC after the 6th April UK tax year end to assist with our Spanish tax return, so it will be more convenient to do it in the latter part of the submission period. I think this would be the same for most Brits who have UK assets and/or income, although Brits living here with no assets in the UK, could probably do the Spanish tax return a little earlier. The Dual Tax Agreement prevents you from being taxed twice on the same asset.

Abaco charge Eu 70 per person for submitting your tax return - they will also advise whether it's more beneficial to do a joint return or individuals returns, based on your individual circumstances; this is because tax thresholds and personal allowances are banded differently in Spain from the UK. Prior to submitting your first Resident tax return, you'll need to submit a "Modelo 720: Declaration of Assets"; Abaco charge Eu 70 per person for this declaration, but you do it initially and then don't do it again unless you have a significant change in circumtances, e.g. in our case, we've declared our UK property, but if we sell it in the future, we would need to do a new Declaration of Assets.

I've seen reports of some Gestors who charge less than this and Lawyers who charge a lot more - the difference appears to be down to the hourly rate of the professional you choose to engage. We went with Abaco because they have a huge amount of positive reviews.

Justjan wrote:Im guessing all the people wanting to stay under the radar, here in spain , would be the first to start moaning about EU citizens arriving in the UK getting free health care etc. Also ive known quite a few couples living in Spain full time under the radar, as they want to keep all the social payments, eg winter fuel, mobility, and carers allowance.. I hope they are prepared to face the fines if and when uk and Spain finally catch up with them.... Just my opinion.

You cannot just arrive in Spain and get free healthcare.

Thanks Marcliff and PaulR, that's helpful

So, a question for those in the know.
Rental income from a UK property is taxable in the UK. It also has to be declared on a Spanish tax return and forms part of your worldwide income. If the rental income from a jointly owned UK property falls below a couples UK tax allowance in the UK, then no tax is due in the UK. You will, however, then be taxed on that rental income in Spain, as it would be added to your overall income. Am I right in this assumption?

UK taxpayers who declare the income on both their Spanish and UK tax returns can make a double tax claim to prevent them being taxed twice. This is made on the UK return and is equal to the Spanish tax paid or the UK tax liability whichever is the smaller.

And, from a tax advisor forum
If you rent out property in the UK, this income remains taxable in the UK. It is also taxable in Spain if you are resident here, and must be added to your other general income and included on your annual Spanish Tax Return. It is then taxed at the scale rates of tax applicable in Spain. A 60% reduction is available in Spain against the net rental income, but only for long-term lettings. The UK tax paid on this income can be offset against the Spanish tax, under the terms of the "Double Taxation" Agreement between the two countries.


So, yes, you are liable to tax in both countries but the tax you pay in Spain is deducted from your UK tax bill.