Talk Quesada forum

As ever Marcliff, thank you for your knowledgeable and useful advice. This past year I have been going through all of the changes to becoming Resedencia and paying tax in Spain on my UK pensions. Yesterday, I returned (via Abaco) my first tax return as a Spanish resident. I am now in the position of paying tax on all of my incomes both in the UK and then again in Spain. This is not a "double whammy" as I can initiate the formal process of informing the UK that I am a 'Fiscal Resident' of Spain and thus recovering the overlapped tax. I will then only be taxed in Spain. This may take a few months. Fortunately, I can afford the temporary double tax but I wanted to forewarn anyone else going through the Resedencia process that they should plan for the possibility of paying tax in both jurisdictions whilst everything proceeds through the required formal processes. It is very possible, though I don't know, that there is an optimum time to minimise this potential overlap. Additionally, I could have initiated obtaining my formal Fiscal Resedencia immediately I had my Resedencia. I would then have been in a position to send everything off to the UK authorities without delay. Thus, I hope this helps others in their deliberations.

QUESTION, if I sold my house in the UK and put the money in my UK bank will I have to pay Spanish tax on that if I became Resident, in Spain as I will not have to pay tax on that in the UK banks?

Thanks Pete.

You would be liable to capital gains tax in Spain if you are resident here. Same as you would be liable to inheritance tax if you inherited in UK.

Which is why renting here for 6 months, taking out residency and then selling your UK property is not a good idea.
Best to go back after 6 months, sell your property in UK and then come back and take out residency as you would not be liable to CGT.

We bought a house here, kept going back to UK (avoiding the 183 day rule) and sold it in December then came back to Spain and took out residency in the following January.

With respect to CGT in UK if you are an expat. The rules in UK have recently changed and, if you are an expat in the EU and have property in UK, if you sell it after April 6th 2015 (retrospective as the rules came in this year) then you could be liable to CGT of 28% in UK.

From a solicitors site

New Capital Gains Tax rules affecting British expats and non-UK residents with UK property

The UK tax loophole which allowed overseas investors and British Expats to avoid Capital Gains Tax (CGT) on the sale of residential property is now closed.
The new rule, which came into effect on April 6, 2015, will particularly affect British Expats and non-UK residents with UK property, especially those with buy-to-let agreements which generate an income. This new rule will mean that the sale of a UK property, which currently attracts no UK capital gains tax could incur a UK capital gains tax bill in the region of 28% on any gains made after April 6th 2015, depending on your personal circumstances.
It is recommended that people who own UK property arrange for any properties to be 'officially' valued (either by estate agent or property surveyor) as soon as possible to establish an accurate understanding of any gains which have subsequently been made.
If you are a non-UK resident, or expat, with a UK property it is important that you understand the new Capital Gains Tax Rules and the full array of options which could reduce your exposure to all types of UK and international taxation - now and in the future.
Apart from death there's only one certainly in life, taxes.