REGISTER OF FOREIGN NATIONALS

EHIC is for emergency cover. How can you be resident in two place?

because my taxes and NI contributions are earned in the Uk and I stay there for more than 3 months so am entitled to do that. When not earning in UK am in Spain spending what I earned. I therefore don't see why I am not covered by EHIC when in Spain or the need to provide additional cover to Register ?? That's the question I am asking?

Tootandploot wrote:Thanks Marcliff, it's interesting to note that residents are treated differently to non residents. How do we stand re Health care if we are reside in both countries and are below pensionable age. Would EHIC cover us and be acceptable? We probably spend on average 3/4 months in Spain and remainder in UK although that could reverse, if my employer feels benevolent when I ask the question?

If you want to apply for "Residencia", register as an extranjero, then an EHIC would not be acceptable. You would need either private medical insurance or an S1 from UK if you are in receipt of the UK State old age pension.

If you are below pension age and have lived in Spain for more than a year and have submitted a Spanish tax return, you can apply for access to the Spanish National Health Scheme, "Convenio Especial" which costs about 60€ per person per month, although you will be charged full price for all your prescriptions.

Thanks Marcliff. My husband and I live in Spain permanently, early retirees, so no income in Spain, but we own a house here and pay for private healthcare. Hubby has a military pension, which has to be taxed and paid in the UK, I have two private pensions and rental income from a property we own in the UK. From what you've said, it sounds as if I should be asking HMRC for us to have UK tax residency, even though, as year-round inhabitants in Spain, we would usually become fiscal residents here? Just double-checking I've correctly interpreted what you've said please? Many thanks.[/quote]

One of the reasons that you inform HMRC tat you are tax resident in Spain is so that you do not use up your UK personal allowance on your UK state old age pension, instead it is used against, in your husband´s case, the military pension.

Your two private pensions are classed as Spanish income and should be declared here in Spain and you should receive them free of all UK tax.

Your UK rental income is taxable both in UK, you can offset your UK personal tax allowance against this, and also in Spain. The tax that you pay on this income in the UK is taken off any tax liability for this rental income in Spain. In Spain your not all of your UK rental income is taxed as it is deemed that you are providing a service.

Your husband´s military pension falls into the group of so called "Government Pensions", police, fire, local authority, civil servants etc. and as such are taxable solely in UK. However it has to be declared as exempt income on your Spanish tax return. This means that your total worldwide income may well put you in a higher tax bracket in Spain so any tax liabilities here in Spain will be levied at a higher rate.

Help please with the next conundrum. Telephoned Newcastle to ask for an S1 to be told I am not entitled to one as we are under pensionable age. Was advised that we have to transfer our healthcare to the Spanish system and use EHIC in UK??? This doesn't seem right to me bearing in mind we have a home in UK and are employed by U K employers and pay taxes and insurances in the UK. We have travel insurance in addition which also covers emergencies. When I asked if I would get a reduction on my NI I was laughed at.

How do we resolve this to enable us to Register.?

Espanabums wrote:Thanks Marcliff. My husband and I live in Spain permanently, early retirees, so no income in Spain, but we own a house here and pay for private healthcare. Hubby has a military pension, which has to be taxed and paid in the UK, I have two private pensions and rental income from a property we own in the UK. From what you've said, it sounds as if I should be asking HMRC for us to have UK tax residency, even though, as year-round inhabitants in Spain, we would usually become fiscal residents here? Just double-checking I've correctly interpreted what you've said please? Many thanks.

One of the reasons that you inform HMRC tat you are tax resident in Spain is so that you do not use up your UK personal allowance on your UK state old age pension, instead it is used against, in your husband´s case, the military pension.

Your two private pensions are classed as Spanish income and should be declared here in Spain and you should receive them free of all UK tax.

Your UK rental income is taxable both in UK, you can offset your UK personal tax allowance against this, and also in Spain. The tax that you pay on this income in the UK is taken off any tax liability for this rental income in Spain. In Spain your not all of your UK rental income is taxed as it is deemed that you are providing a service.

Your husband´s military pension falls into the group of so called "Government Pensions", police, fire, local authority, civil servants etc. and as such are taxable solely in UK. However it has to be declared as exempt income on your Spanish tax return. This means that your total worldwide income may well put you in a higher tax bracket in Spain so any tax liabilities here in Spain will be levied at a higher rate.[/quote]

Thanks Espanabums. We're mid fifties, so another 10 years before we can claim our State Pensions. I already do HMRC Self Assessments for the UK rental property and my husband's military pension is taxed at source in the UK, so effectively PAYE. I was hoping we could carry on that arrangement until we reach State Pension age, hence my request to Marcliff to confirm whether my interpretatation of his post was correct (and not least, because I can do it online without incurring professional fees). Sounds like we may need professional advice for this one - I'll search for any other threads and start a new one if needed.

Paulr wrote:Thanks Espanabums. We're mid fifties, so another 10 years before we can claim our State Pensions. I already do HMRC Self Assessments for the UK rental property and my husband's military pension is taxed at source in the UK, so effectively PAYE. I was hoping we could carry on that arrangement until we reach State Pension age, hence my request to Marcliff to confirm whether my interpretatation of his post was correct (and not least, because I can do it online without incurring professional fees). Sounds like we may need professional advice for this one - I'll search for any other threads and start a new one if needed.

My situation was very similar apart from not needing the healthcare as my OH is in receipt of UK State old age pension and so had an S1 which also covered me as her dependent.

If you don´t have much income in Spain then you obviously will not pay much tax in Spain. for instance if your two private pensions equate to or are less than the value of a UK State old age pension, you probably will not pay any tax in Spain as the Spanish tax liability on your UK rental income will probably be covered by the amount of tax already paid on it in UK. Your husband´s Spanish tax liability, probably only his portion of UK rental income, will also probably be nil.

The tax burden in Spain will be heaviest when you are both in receipt of your UK State old age pension. You can also do your Spanish tax return online as you already know your way around a UK self assessment, I do.

If you take out private medical insurance for the first year, you will then be able to use the "convenio especial" to get into the Spanish state health system at a cost of 60€ per person per month as you are under the age of 65.

If you want to PM me some figures to work with, I will give you an idea of your tax burden.