Buying a house in Spain non-resident, risks?

[lonizzita]

Hi, I am a digital nomad with residence and citizenship in the EU (not Spain).
I want to buy a beach house in the Canaries as a non-resident, and will probably live there several months a year, even 8 months a year.

In order not to risk this house being considered as resident, I read that Spanish tax agency is the strictest in the world.
How can I protect myself? what do you recommend?

At the moment I thought of making a ”˜'fake”˜' rental contract to a friend of mine, but then I have to pay taxes on the contract, about 20% on the price I put on the contract.


But if you have other cheaper solutions it would be better.

 

[JohnnyDoe]

Go somewhere else outside the EU.

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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 

[aniglo22]

But you would still live there more than 183 days ? You would need to proof tax residence in a other country otherwise your stay outside spain doesn't count .
So you would be liable for taxes for the whole year .

 

[daniels27]

lonizzita said:
I want to buy a beach house in the Canaries as a non-resident, and will probably live there several months a year, even 8 months a year.
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8 months? And then fly there and when they catch you, you tell them that you were there only 1 day before you swam out to Africa and then back 7.9 months later?

Honestly, with the new API rules, you are doomed.
https://ec.europa.eu/commission/presscorner/detail/en/ip_24_1262

If your want to give it a chance, ask your friend to buy and you just live there undocumented. But even that I would not want to do. Too much to worry at night. stupi#21

 

[JohnnyDoe]

What is so special about the Canaries that justifies risking all your assets and freedom?

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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 

[daniels27]

JohnnyDoe said:
Go somewhere else outside the EU.
Click to expand...

Exactly this! If you don't like the taxes in Europe, don't stay there. Why complain about the taxes but then not be willing to move elsewhere? Leave and show the governments with your money, that their offer is not fair. It is a free market. If you you sell rotten vegetables and customers keep coming, you can rust prices. It is up to you as a customer to leave a country, so they must improve the offer.

 

[daniels27]

JohnnyDoe said:
What is so special about the Canaries that justifies risking all your assets and freedom?
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The weather is good. It is close too Europe and there are cheap flights every hour into all major cities.

As the banks say: it is not within my risk appetite. I may be a risk guy. But not with western governments. Always remember @jafo's last words:
[IMG alt="jafo"]http://localhost/data/avatars/s/29/29878.jpg?1727588583[/IMG]

Post in thread 'KYC loses its function once the coins have left the exchange?'​

Nov 5, 2024

Revoltec said:
I do not know how this would be interpreted in court.
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If it gets to this point, the target is a DEAD man! The Cartels of Mexico, Russia, Colombia, and the Yakuza combined are orders of magnitude more sympathetic and less cruel to the target than the gang members under the ruse of government will EVER be. 😉

There are NO mutes in prison! EVER!

IYKYK!

• jafo

 

[aniglo22]

daniels27 said:
Exactly this! If you don't like the taxes in Europe, don't stay there. Why complain about the taxes but then not be willing to move elsewhere? Leave and show the governments with your money, that their offer is not fair. It is a free market. If you you sell rotten vegetables and customers keep coming, you can rust prices. It is up to you as a customer to leave a country, so they must improve the offer.
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Not really a free market , you have exit taxes .

 

[daniels27]

aniglo22 said:
Not really a free market , you have exit taxes .
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Yes. But only on value you created while your were there. And many free market contracts have heavy exit penalties too. It cost United a lot to get Latam out of oneworld as we read in the news.

To be fair: yes, the taxation of goodwill opens many doors to governments to charge you in an unfair manner. But an exit tax in the terms of capital gains tax on unsold property is just what for have to pay anyway. It is not like instead of charging the tax annually, they do it when you sell it move away.

Last edited: Dec 14, 2024

 

[JohnnyDoe]

daniels27 said:
The weather is good.
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Like in so many other places.

daniels27 said:
It is close too Europe
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1300km to Lisbon, not that close. But is it a good thing to be close to Europe?

daniels27 said:
and there are cheap flights every hour into all major cities.
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If you worry about the price of plane tickets you are broke and you shouldn't worry about taxes. You might even obtain some kind of subsidy from the EUSSR.

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[daniels27]

JohnnyDoe said:
Like in so many other places.
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Dominican Republic!

JohnnyDoe said:
1300km to Lisbon, not that close. But is it a good thing to be close to Europe?
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Not my taste. But I understand some of the people's needs here to be close as they believe (not need) to be available for business. I think @Barney2201 was among them.

JohnnyDoe said:
If you worry about the price of plane tickets you are broke and you shouldn't worry about taxes. You might even obtain some kind of subsidy from the EUSSR.
Click to expand...

29 EUR for a flight already smells like tons of subsidies in various forms from free infrastructure to tax-financed social security and health care of the flight staff.

@JohnnyDoe don't forget about all the new users here who make 10k per month and are worried about taxes only. stupi#21

[COLOR=#ffd180] H [/COLOR]

Thread 'Help For Tax optimization [ France ]'​

Dec 3, 2024
hi everyone!

I have a problem that I had to anticipate but unfortunately things decided otherwise!

I'm currently running a micro enterprise in France, and I have a 50% rebate on my charges which ends this month.

Without this abbatement, my margin won't be high enough to continue growing at the speed I'm aiming for!

I had consulted a chartered accountant in the middle of the year, who confirmed that I could open a limited company in one country (e.g. Gibraltar) and pay myself a salary in France.

I would then pay corporate tax in Gibraltar and income tax in France.

So my questions are...

• HarryMen
• france france tax
• Replies: 59
• Forum: General Business Discussions

The turnover limit for his micro company is less than 15k per month. Turnover. Not profit. As the sand time he does not want to leave because he is getting "free" healthcare in France. stupi#21

It is like eating in a restaurant and after the dinner complaining that it is unfair you have to pay while those walking in the street don't pay.

Last edited: Dec 14, 2024

 

[Marzio]

lonizzita said:
How can I protect myself?
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Are you tax resident in another EU state and you pay taxes + have a permanent home there?

 

[Martin Everson]

lonizzita said:
I want to buy a beach house in the Canaries as a non-resident, and will probably live there several months a year, even 8 months a year.
Click to expand...

If I could give out bravery awards for those taking tax risks you would be top of the list.

lonizzita said:
In order not to risk this house being considered as resident, I read that Spanish tax agency is the strictest in the world.
How can I protect myself? what do you recommend?
Click to expand...

Not living there.


P.S We discussed people planning on moving to Spain in other threads. problem is people go on holiday fall in love and want to live that holiday dream permanently. But you need to keep those dreams in your head and don't act on that lifestyle fantasy. Spain is a tax hell hole if you have money and ambition. When your broke, given up chasing money or lack entrepreneurship in life perfect place to live. But in general you do not want your life in any shape or form connected to their tax system.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[JackAlabama]

lonizzita said:
Hi, I am a digital nomad with residence and citizenship in the EU (not Spain).
I want to buy a beach house in the Canaries as a non-resident, and will probably live there several months a year, even 8 months a year.

In order not to risk this house being considered as resident, I read that Spanish tax agency is the strictest in the world.
How can I protect myself? what do you recommend?

At the moment I thought of making a ”˜'fake”˜' rental contract to a friend of mine, but then I have to pay taxes on the contract, about 20% on the price I put on the contract.


But if you have other cheaper solutions it would be better.
Click to expand...

do not be there for 8 months.
Then its fine.

 

[no1d]

Stay in Spain up to 6 month, don't open bank accounts, and you'll be fine.

 

[JackAlabama]

no1d said:
Stay in Spain up to 6 month, don't open bank accounts, and you'll be fine.
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yup its the proven method for retirees.

 

[lonizzita]

Marzio said:
Are you tax resident in another EU state and you pay taxes + have a permanent home there?
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Yes I am a resident of another EU country. Where I have a rented house and I pay taxes there.

 

[lonizzita]

no1d said:
Stay in Spain up to 6 month, don't open bank accounts, and you'll be fine.
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When you buy the house you have to open a bank account in Spain

 

[daniels27]

lonizzita said:
When you buy the house you have to open a bank account in Spain
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Legally, you don't have to. All EU banks are equal and nobody is allowed to force you to open an account in a particular country.

 

[daniels27]

lonizzita said:
Yes I am a resident of another EU country. Where I have a rented house and I pay taxes there.
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Have you read the DTA between your country and Spain? Just make sure you fulfill the requirements for being only tax resident in your other country.