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NLV advice

Posted: Mon Nov 29, 2021 5:35pm
2 replies77 views4 members subscribed
AliCee

Posts: 21

8 helpful points

Location: La Cala De Mijas

Joined: 4 Oct 2021

Can anyone out there who knows the process for applying for an NLV advise if you are asked when the NLV is to take effect, and how far in advance can it be post dated?  I am selling my house in the UK and it won’t go through until 2022, so I don’t want my NLV to start until 4th July at the earliest, otherwise I will have to pay Capital Gains Tax on the UK house sale as I will fall into the Spanish 2022 fiscal tax year. I realise that I also won’t be able to move out here until at least 4th July, otherwise I will have been in Spain for more than 183 days.  But I will also need an address in the UK from which to apply for the visa, so I’m thinking if I apply soon, while I still have my house, can I post date the NLV to start next July?  Has anyone been through this process that can help, or knows the rules?  It’s a bit like the chicken and the egg!

Holaitsdavid

Posted: Mon Nov 29, 2021 8:27pm

Holaitsdavid

Very helpful member

Posts: 1447

542 helpful points

Location: Mijas Costa

Joined: 30 Mar 2021

Posted: Mon Nov 29, 2021 8:27pm

You will need specialist advice from people who understand cross border taxation, note below Spain 'Article 9', if you obtain your Visa/Residence even from July and buy your property you will be a Tax resident in Spain for 2022 Spanish Tax year starts in January. Spanish residents over 65 are not subject to CGT on their house sale, if you are under you could find yourself liable for CGT in Spain, when you get your NLV as you are also declaring yourself as a Tax resident. In 2023 you have to declare all income and assets on a tax return in Spain.(Spanish tax and allowances are not very generous include earning from UK including pensions)  Regardless of when the Spanish Tax year starts which effectively is backdated, other countries such as UK apply their individual rules, but "yes" you don't want to sell your property before you get your NLV which might make things easier with Spanish tax if 2023.  Its worth finding and paying a good cross border tax accountant or speaking to an international financial adviser like 'Belvin Franks' who normally would give you some free advice.     https://www.blevinsfranks.com/who-we-are/our-team/  (Other point as, you can only drive for 6 months UK licence, they had to be  swapped while an EU citizen, so unless a deal with the UK you need a Spanish Driving Test)  

 

  • Article 9 states that if a person is physically present more than 183 days in a calendar year, they are considered as a tax resident of Spain.
  • But article 9 also has the effect that a person is tax resident if physically present less than 183 days in a calendar year, in the case that the centre of family or economic interests is in Spain. 
  • Spain2029

    Posted: Wed Dec 1, 2021 7:02pm

    Posts: 1

    1 helpful points

    Location: Benalmadena

    Joined: 1 Dec 2021

    Posted: Wed Dec 1, 2021 7:02pm

    We used these in La Cala Sam and the team were absolutely amazing highly recommend they helped with the Visa and our taxation concerns.

    https://lifestylegroup.es/category/legal-financial-tax/money-financial-articles-information/financial-advice/

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