Why do we become expats in the first place? I guess in many instances we would probably say that we are looking for a better quality of life, an opportunity to build a new future and certainly better weather!
Living in Spain pretty much ticks all of those boxes and if you can put up with some of the bureaucratic nightmares ( have you ever tried to import a car?) and the language difficulties then you really can start living the dream.
However when it comes to taxes I wouldn’t put Spain as my favourite jurisdiction. Yes there are tax breaks and there are certainly tried and tested methods of mitigating Spanish tax but with Savings tax, Succession tax and Wealth tax call needed to be considered then clearly there is plenty of ongoing financial planning needed.
So what about Gibraltar? Could this be a solution for you when it comes to your tax residency status. Clearly there are some obvious benefits, English language for one and a benign tax regime for another. When I say benign I mean no savings tax, wealth tax or inheritance tax (you may still be liable for UK IHT), no VAT and retirement income from a QROPS or QNUPS only taxed at 2.5%. Nice?
Isn’t the solution then to take residency in Gibraltar and carry on living in Spain? This is where you have to be extremely careful and remember the residency rules as they apply to Spain. Spend more than 183 days a year on the Spanish side of the border and you fall into the trap of automatically becoming tax resident there and as any frontier worker will tell you there is now an “intelligent“ border between Gibraltar and Spain with passports being scanned to check for this type of abuse.
If you are going to switch your residency to Gibraltar you are going to have to do it properly and make sure you comply with the law on both sides of the border.
You will be pleased to know that we handle and process all types of residency applications for Gibraltar with a 100% success rate to date! So whether you are looking to apply under one of the special schemes such as Category 2 or just ordinary resident then we are able to help.
In fact our residency department handles applications for Portugal under the Golden Visa scheme and for Malta too. You see we want to help you live the dream in the jurisdiction that suits you best.
Clients tell us they want professional advice which covers all of the tax issues when moving abroad, help with relocating and a review of their pension and financial assets to ensure that these will be held in the most tax efficient way in any new jurisdiction and that’s exactly the service we offer.
You could be enjoying the benefits of being tax resident in Gibraltar sooner than you think. Take advantage of our special OFFER AND HAVE A FREE 5 STEP residency assessment (worth £750) to find out which is the best residency option for you or benefit from our free Gibraltar residency tax assessment (worth £1,000) to discover how much tax you could be saving by becoming Gibraltar resident.
Speak to a residency expert on on tel 951319727 or email firstname.lastname@example.org.