medina21

I could rent a modern, 2/3 bed terraced house for 350 euros in the pueblo I lived in. Three thousand baht gets you a cell in a Thai tenement style building. No way José.

As regards investment income, you'll have to pay income tax. Also,If the value of your shareholding(s) exceeds 50,000 euros you'll have to make an asset declaration.

If your net wealth (after deductions) exceeds 700,000 euros you'll have to pay wealth tax. Google wealth tax Spain and you'll find the details. For someone with a house in the SE of England, it wouldn't be difficult to exceed the 700K. Not all of the regions apply this tax, but most do, including the Canaries, Mallorca, Catalonia and Andalucia.

For clarity, the asset declaration and wealth tax are separate requirements.

The simple things - people saying 'buenos dias', coffee on your favorite terrace, freshly baked bread - are the things that really count. I like Thailand in many ways but what I miss terribly is the sense of community that exists in many smaller places in Europe. Asian society doesn't work like that.

Loppylugs,

If you are heading to Spain, rent before you buy, or rent long-term. Rents are cheap. You can easily find somewhere for 400 euros per month outside the main centers/tourist spots.

Morning coffee on the terrace of my local bar, watching the world go by, is a really strong pull. Everyone says 'hi', the view of the 600-year-old church is beautiful and you can chat freely. The locals are not slow to express their disgust with those in power

You don't have to be tax resident anywhere. If you are well organized and happy to move between countries, you can live a life free of income tax. Anyone for a caravan .

Re cars and Spain, just hopping over the border to France or Portugal might not work. The Spanish police are not to be messed with. However, my experience of Spanish life was in a small pueblo. If you are in a medium-sized/large town your presence will be more anonymous.

As an EU citizen, in theory, you could stay in Spain indefinitely. But don't have anything registered in your name: telephone, internet, gas, electricity and water. Also don't own a property because the consumption of gas, electricity and water can easily be checked. Another thing. Don't drive a car on UK plates for more than 6 months. The Policia Local will be aware of your presence and will impound your car if you stay longer than 6 months. This happened to a friend of mine who had a business there. So, it's possible to fly under the radar. Just be wise about it.

The UK has a tax treaty with Spain. This addresses the question of double taxation. However, if the tax burden on your UK sourced income is higher in Spain, your obligation in Spain will be reduced by the tax already paid in the UK.

Over 183 days, you become a tax resident.

Loppylugs1,

Your facts on Spain are wrong.

Income tax is considerably higher than in the UK. I know, because I've paid it. Also, they have a wealth tax.

Income tax is also much higher in Portugal. In addition Portugal has a 'solidarity tax' -in addition to income tax- of 3.5% on income over 6790 euros, and interest from accounts in the Channel Islands, Gibraltar and the Isle of Man is taxed at 35%. The fact that The Channel Islands and the IOM report your account to the Portuguese every year, doesn't stop the Portuguese revenue treating you like a criminal.

It's important to know the facts before taking up tax residency in another country, particularly the bankrupt ones of the Med. I guarantee you that the tax you pay will increase in Portugal and Spain after the elections later this year. I'd love to be wrong, but when you look at the debt profile of these countries, the politicos will do what they always do. They'll raid our pockets again. I think I'm correct in saying that private and public debt in Portugal is 350% of GDP. Makes Greece look like a good pupil

Spain is completely over-governed with layer upon layer of administration: central, regional, sub regional, sub-sub regional, and town halls. This is a monstrous waste of money. Taxpayer's money. It's also got a serious corruption problem. The PP is up to its ears in corruption, as is the Junta de Andalusia (PSOE). There are many other cases too. Mallorca has always been run like a family biz by the party in power.

These are wonderful places to live, but the sangria,sardines and sunshine comes at a price. For me, moving to Spain would more than double the percentage of gross income lost to tax ( 14.69% in the UK against 33% in España).

Que mierda, death and taxes

Word Child, you are spot-on.

I may well go back to Spain. That's a personal choice. But, you need to be aware of the fiscal obligations you are walking into.

Spain, France, Portugal and Italy all tax you more than the UK. The Spanish govt say the asset declaration is not to tax people. Total BS. It gives them a shopping list of all your assets, and you can be 100% sure they will use this info to fill their coffers in the future. However, the cost of living is generally less than in the UK, which mitigates, to an extent, the extra tax you pay. Just remember, if you buy a property in Spain, you'll pay another 15% in stamp duty and fees! Also, if the revenue think the price you paid is lower than their 'official non-market value', they'll send you an extra bill for stamp duty. The fact the market has crashed is of no interest to them. One more negative. Spanish banks will rip you blind for transferring money out of the country.The moral of the story is this - be informed

Income tax, VAT, purchase taxes on property, wealth tax, inheritance tax,taxed on worldwide income...

Hi everyone,

I've lived in both Spain and Thailand: 9 years in España and nearly 5 in Thailand. Am seriously looking at a move back to Spain. In the south of Spain, outside of the tourist areas, the cost of living is extremely reasonable. So, a supermarket shop is measurably less than in Thailand. In my pueblo a cafe con leche is 1 euro, as is a small glass of Cruz Campo. I've just compared my living costs in Bangkok to Spain and reckon there is little difference.

However, tax is a real issue in Spain. It's much higher than in the UK. Both countries have progressive rates of tax, but there are more tax bands in Spain and they are higher. Also, the current tax free allowance in the UK is £10,600 against around £3679 in Spain. Spain also has a wealth tax, and an annual asset declaration for any assets over 50,000 euros outside the country.The penalties for failing to complete this declaration are horrendous.

Culture-wiseSpain thumps Thailand. Also, the beaches are much nicer in Spain.

Corruption is a major problem in Spain, but it's off thev 'richter' here lol.

The thing I appreciate most about Spain is the sense of 'community'. Your local bar quickly becomes the centre of your social life. There's a real feeling of communiy. Well, that was my experience.

The ideal would be a foot in both camps. Decisions, decisions

PS The editor on this forum sucks!