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Focus on Spain | 24
Life in an Expat
Utopia
A new guide from Halifax International provides all
you need to know about life in this jewel on the
Iberian peninsula
ffering a delectable serving of
O
sunshine, averaging 320 days per
year, outstanding healthcare,
unrivalled golf courses, quality
schooling, beaches among the
world’s cleanest and best, the
opportunity to commute to the
UK and be home in around three hours, topped
off with a generous British expat community for
good measure, Spain’s reputation as an Expat
Utopia is well-founded.
However, like other nations, Spain has not
been spared from the impact of the world’s
economic downturn. Its previously enviable
growth rate has suffered, as have its businesses
and property owners, leaving a bitter taste in the
mouth for a number of British expatriates.
Demand is down, unemployment up and
uncertainty plentiful. And because of this it’s
crucial that anyone considering investing or
moving to Spain factors this into their thinking.
Nevertheless, prolific author and historian
Thomas Fuller once wrote “A good garden may
have some weeds”. And whilst Spain has its share from how to set up a local bank account and either from work as an employee or by means of
of problems, it certainly is still that – a very good understanding your tax liabilities, to the property self-employment. Under Spanish law, taxable
garden. buying process and getting to grips with the local income is determined as the difference between
Whether you’re pursuing a dream of working culture. income earned and deductible expenses and is
or retiring abroad, looking to give your family a assessed differently for residents and non-
better life or working for a multinational that is Tax residents in Spain.
offering you a transfer, emigrating to Spain can Taxes in Spain are of course as inevitable and
be successful and rewarding providing you do unavoidable as they are in the UK. Presented Non-residents' income tax
the homework and prepare thoroughly; having with an unfamiliar system, it can be confusing liability
said that it’s surprising how many people base a knowing where to start and what to expect. If you have money deposited with a Spanish
move to Spain on little more than the Moving countries can be a bureaucratic bank, a property in Spain, or derive income from
presumption that living there will be one long headache but with a little bit of homework the any business in Spain then you will be liable to
holiday. pain can be dramatically softened. pay tax.
For individuals contemplating moving to Personal Income Tax (Impuesto sobre la renta So what formally makes you a Spanish
Spain, the below guide provides comprehensive de las personas físicas/IRPF) is a direct tax levied resident? For income tax purposes, under
advice and information on a number of issues, on the income of individuals, which may come Spanish domestic law and its Double Tax Treaty
www.investmentinternational.com November 2009 Investment International
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