Living 'Tax-Free' in Europe: Flying Under the Radar on Savings Alone?

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In your first post you asked, "Is it feasible to 'legally evade taxes' in Spain or Portugal". The short answer is no, it's not. Wherever you live, you will be paying taxes. You won't be able to purchase goods without paying VAT. You won't be able to own real estate without at least paying property tax. You won't be able to consume alcohol or tobacco without paying excise tax.

Above applies to almost every country. There are some exceptions like Malta, which doesn't levy property taxes.

What tax are you talking about? I assume you mean income tax.

In your latest post you are adamant that you will be earning no income. Therefore you will not be liable to income tax, and perhaps you won't be liable for national insurance (social security) either. However, you will still need to file tax returns to this effect. And if the Spanish tax authority ever questions your returns or wants to audit you, you will have to have all the evidence to support your story. If you can't substantiate your situation, the tax authority might have grounds to estimate the tax that you owe them, based on your lifestyle and any other information you give them, and that's when things can get uncomfortable.

It sounds like you have your heart set on Spain, and you have a good chunk of capital behind you. I recommend using a slither of it consulting with local accountants in Spain. They will be best equipped to tell you what you need to do before you change residence, and prepare you for ongoing residence and property ownership in Spain.
 
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