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We're thinking about moving to the island.
Does anyone have any experience what kind of taxes one would have to pay?
There must be tax Bands. Does anybody have info on that?
Any advice on living on the Ireland?
Anything would be appreciated
Thanks
Ludwig
Posted: Thu Apr 24, 2025 2:38pm
Hi there
What type of tax are you referring to i am from Ireland 🇮🇪 and moved here 1.5 years ago permanently
Are you European
Are you going to work
Are you buying a property , more tax bands
At the moment it costs me 400 euros non resident tax this every year until year 5
I am retired
Let me know if this helps
Posted: Thu Apr 24, 2025 7:44pm
billbee wrote on Thu Apr 24, 2025 2:38pm:
Hi there
What type of tax are you referring to i am from Ireland 🇮🇪 and moved here 1.5 years ago permanently
Read more...
Are you European
Are you going to work
Are you buying a property , more tax bands
At the moment it costs me 400 euros non resident tax this every year until year 5
I am retired
Let me know if this helps
Hi
I actually lived in Cork for 16 years.
I'm German and retired. We have property here and considering staying here permanently.
I was referring to income tax.
If you pay €400 non-resident tax, you must still have an address in Ireland and you'd be paying your income tax in Ireland.
Looking forward to hearing from you
All the best
Ludwig
Posted: Thu Apr 24, 2025 8:03pm
thimble wrote on Thu Apr 24, 2025 7:44pm:
Hi
I actually lived in Cork for 16 years.
Read more...
I'm German and retired. We have property here and considering staying here permanently.
I was referring to income tax.
If you pay €400 non-resident tax, you must still have an address in Ireland and you'd be paying your income tax in Ireland.
Looking forward to hearing from you
All the best
Ludwig
I am paying no income tax in Ireland I am retired
You will be a non resident for 5 years
That's the tax you pay
Income tax from work or a Vv rental is that what you are referring to
Regards
Billy
Posted: Fri Apr 25, 2025 8:10am
Helpful member
This link will give you an idea of the tax bands. https://www.europeaccountants.com/spain/tax-rates
In order to apply for residencia, you will need to have at least €7.200 per person and must have proof of private health insurance, contracted either in Spain, or in another country that provides coverage in Spain, that is equivalent to that provided by the national healthcare system (ie no exemptions and no excess).
Your first 5 years are classed as 'Temporary', and you are required to be in Spain for at least 6 months per year. After 5 years your residency will become 'Permanent'.
If you have any questions about living in Fuerteventura, don't hesitate to ask!
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Posted: Fri Apr 25, 2025 8:13am
Helpful member
billbee wrote on Thu Apr 24, 2025 8:03pm:
I am paying no income tax in Ireland I am retired
You will be a non resident for 5 years
Read more...
That's the tax you pay
Income tax from work or a Vv rental is that what you are referring to
Regards
Billy
That is incorrect.
You become a resident immediately you are approved and given a green card. The first 5 years are classed as 'Temporary' and you ARE a resident. Once you have your green residencia you do NOT pay non-resident tax.
Posted: Fri Apr 25, 2025 8:40pm
billbee wrote on Thu Apr 24, 2025 8:03pm:
I am paying no income tax in Ireland I am retired
You will be a non resident for 5 years
Read more...
That's the tax you pay
Income tax from work or a Vv rental is that what you are referring to
Regards
Billy
Hi Billy
I was referring to my retirement pay as income. When you pay non-resident tax, doesn't the spanish revenue service ask for a income tax return
Ludwig
Posted: Sat Apr 26, 2025 5:00am
Helpful member
>>I was referring to my retirement pay as income. When you pay non-resident tax, doesn't the spanish revenue service ask for a income tax return <<
If you have a green residencia card you do not pay non-resident tax.
As a resident, either temporary (first 5 years) or permanent (5+ years), you will be liable for income tax on your worldly income. If you are a state pensioner then the threshold for which you do not pay tax is higher. I can't remember how much it is now, but think it is €14000 per annum.
The tax year is from January to December.
If you have a property outside of Spain that you will be selling, you may well be liable for capital gains tax. However, if you sell your property prior to July and do not become a resident until after that (so you are here for less than 183 days) then you should not have to pay CGT because you were not a tax resident for that year.
Whether or not you will have to pay annual income tax will depend on the amount your income is. We have our British state pension + a long-term rental income and have never yet had to pay income tax.
You should submit a tax return the first year you are liable. Whether or not you must submit one annually depends on where a your income comes from and how much it is. Just a pension and you may not have to, but it is always advisable to do so. We have to as we have rental income.
I strongly recommend that you have the services of an accountant to advise you and also submit your returns.
Posted: Sat Apr 26, 2025 9:22am
FuerteventuraNow wrote on Sat Apr 26, 2025 5:00am:
>>I was referring to my retirement pay as income. When you pay non-resident tax, doesn't the spanish revenue service ask for a income tax return <<
If you have a green residencia card you do not pay non-resident tax.
Read more...
As a resident, either temporary (first 5 years) or permanent (5+ years), you will be liable for income tax on your worldly income. If you are a state pensioner then the threshold for which you do not pay tax is higher. I can't remember how much it is now, but think it is €14000 per annum.
The tax year is from January to December.
If you have a property outside of Spain that you will be selling, you may well be liable for capital gains tax. However, if you sell your property prior to July and do not become a resident until after that (so you are here for less than 183 days) then you should not have to pay CGT because you were not a tax resident for that year.
Whether or not you will have to pay annual income tax will depend on the amount your income is. We have our British state pension + a long-term rental income and have never yet had to pay income tax.
You should submit a tax return the first year you are liable. Whether or not you must submit one annually depends on where a your income comes from and how much it is. Just a pension and you may not have to, but it is always advisable to do so. We have to as we have rental income.
I strongly recommend that you have the services of an accountant to advise you and also submit your returns.
Thank you very. Very helpful advice.
There is not rental income, just retirement pay from different sources.
We'll have a chat with a Spanish accountant
Kind regards Ludwig
Posted: Sun Apr 27, 2025 4:14pm
thimble wrote on Sat Apr 26, 2025 9:22am:
Thank you very. Very helpful advice.
There is not rental income, just retirement pay from different sources.
Read more...
We'll have a chat with a Spanish accountant
Kind regards Ludwig
You are in the EU
