Retiree Relocation Issues to Consider

Do you have a query about moving to Andalucia and buying property in Andalucia. Find out by posting questions and reading about other peoples experiences.
Sotouboy
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Posts: 2
Joined: Fri Oct 13, 2017 5:18 pm
Location: Estepona

Retiree Relocation Issues to Consider

Postby Sotouboy » Sun Oct 15, 2017 8:55 am

My wife and I are retirees considering relocating from the US to Estepona. We are purchasing a villa that would qualify us for a Golden Visa, but my wife is also a German national, so we could also qualify for Residency using her EU citizenship. We have several questions about the best way to approach living in Estepona.

1. Are there benefits/trade offs between getting a Golden Visa vs just using European Residency?

2. We would like to bring our household effects and at least one car with us. These are long time personal possessions that we have no intention to sell. What do we need to do to import them without paying import duties or VAT? Would we have to become “tax residents” or could we accomplish this living 5-6 months/year in Spain?

3. If accomplishing #2 requires we become tax residents in Spain, will our US pensions be taxed in Spain? What about investment income from stocks held in the US or our rental properties we own in the US?

4. I’ve noticed some timing issues in responses to questions similar to ours. Are there critical time frames associated with villa purchase, residency declaration, personal effects importation, etc?

5. Can anyone recommend a reliable, reputable Spanish moving/customs clearance firm with affiliates in Virginia that could handle the packing & transportation of our personal effects?

These are a lot of questions, but the answers are intertwined. Any insight that could be provided would be greatly appreciated!

Thank you in advance for your help!

mtantill
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Posts: 2
Joined: Fri May 19, 2017 2:13 am
Location: Hong Kong

Re: Retiree Relocation Issues to Consider

Postby mtantill » Tue Oct 17, 2017 6:20 am

I have researched for myself for a couple of years. I will preface by saying, I am not 100% certain on all of these, but because we are US citizens, we have different obstacles to clear to get residency.

1. Are there benefits/trade offs between getting a Golden Visa vs just using European Residency?
For US citizen, if you have the money to get a Golden Visa it is your "easiest" option. Unless you hold dual nationality, your marriage to EU citizen will not grant you residency in Spain UNLESS you have already obtained a permanent residency somewhere else in the EU. If this is case, then I think it would be possible enter with that residency, but you will still need to apply in Spain for stay permission. As I understand the golden visa, once you are have gone through all the required paperwork, you have permanent residence from the get-go.

2. We would like to bring our household effects and at least one car with us. These are long time personal possessions that we have no intention to sell. What do we need to do to import them without paying import duties or VAT? Would we have to become “tax residents” or could we accomplish this living 5-6 months/year in Spain?
For import, you get a one time VAT exemption providing you provide all the necessary proof. This one-time exemption has to be done within 6 months of entry with a residence visa. I believe bringing in a car has additional requirements. You will become tax residents after 181 days in Spain regardless of importing personal items.

3. If accomplishing #2 requires we become tax residents in Spain, will our US pensions be taxed in Spain? What about investment income from stocks held in the US or our rental properties we own in the US?
Whatever money you draw is taxable as I understand it. This is one item I am still researching myself, but from what I have seen, whenever we withdraw money that leads to a taxable consequence in the US is taxable in Spain. That being said, because you are an expat, you will get the benefit of 100K exemption from US taxes, so you should not have to pay in the US if your retirement income is reasonable. This exemption requires you pass the bone fide residence test (300 days outside of US contiguous(I think)). Not sure about the rental income - as that would be 1099 income, i am going to suggest it would also be taxed in Spain as income if it is declared.

4. I’ve noticed some timing issues in responses to questions similar to ours. Are there critical time frames associated with villa purchase, residency declaration, personal effects importation, etc?
My guess at timeframe would be - buy property and close, exit Spain (you entered on 90 day tourist visa). Apply for long-stay visa based on closing documents. You will get a entry visa that is good for 30 days - this must be stamped and you will register with local police who will also stamp it. You then convert this temporary long-stay visa with permanent residency. At the point you have submitted and looks like all is good, you would import your items.

5. Can anyone recommend a reliable, reputable Spanish moving/customs clearance firm with affiliates in Virginia that could handle the packing & transportation of our personal effects?
No, but I would suggest you consider the cost of importing vs buying new in Spain. Your favorite couch could end up costing you $5000 US which would go a long way in Spain for new stuff.

Hope this helps, as I said, some of the above may be incomplete, but this is where I am at so far. Looking to do the same thing, but on the retirement visa.

Sotouboy
Newbie
Posts: 2
Joined: Fri Oct 13, 2017 5:18 pm
Location: Estepona

Re: Retiree Relocation Issues to Consider

Postby Sotouboy » Tue Oct 17, 2017 9:27 am

THANKS!! This is very helpful! :)

wollie
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Posts: 613
Joined: Fri Nov 07, 2014 8:53 pm

Re: Retiree Relocation Issues to Consider

Postby wollie » Tue Oct 17, 2017 10:18 am

https://www.expatica.com/es/finance/Tax ... 471614.htm

Have a look here it may give you some idea.
The only thing i can say is when i looked i be in the tax net much earlier as income and cost of living much less in most of Spain.
Everyone's situation different.

Regards.


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