Relocated oil workers need advice regarding tax in Tenerife

[MrsMak]

hi everyone :wave:,
We are relocating to the island next year however have found conflicting evidence with regards to tax and how much we would be eligible to pay when we delare residency here?? any advice or recommendations on who to speak to please?? thanks

[granitecityred]

Dont go resident......My wifes resident and im non resident. All depends if your working in the uk sector, if you are your eligible for uk tax....if worldwide your not in Spain as your aloud 183 days in the country

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Dont go resident......My wifes resident and im non resident. All depends if your working in the uk sector, if you are your eligible for uk tax....if worldwide your not in Spain as your aloud 183 days in the country

- - - - - - - - - - merged double post - - - - - - - - - -

Dont go resident......My wifes resident and im non resident. All depends if your working in the uk sector, if you are your eligible for uk tax....if worldwide your not in Spain as your aloud 183 days in the country

[MrsMak]

we have a daughter that will need to go to a school in a years time so will have to declare residencia for that. My husband will have to register for tax purposes in a country - in the uk its 40%. He works for a uk company but overseas and not in uk waters.

[granitecityred]

I have 2 children going to school here, my wife is resident so the children can go to school. Your husband should just get his wages sent direct to the bank in Tenerife and not apply for residencia. Like i said if your non resident your aloud in the country 183 days of the year. Theres 3 of us work offshore at my local bar and we all do this.

[MrsMak]

Thanks for your help :)
so if you dont mind me asking do you pay tax in the uk? from initial enquiries if he registered in tenerife he would pay 43% tax - however a lot of people say they know oil workers that use here as a tax haven as its a lower rate than back home (i havnt found any proof to this though- )if your wife is resident do they get a form of healthcare here? sorry for all the questions

[granitecityred]

I dont pay tax in the uk or Spain.........i work in Saudi and my company is based in Dubai. I know of at least another 10 -12 oilworkers that live in Tenerife and not 1 of them pays Spanish tax and none of them are residents. A few work for Transocean and just get there wages sent over here.
Once youve been to the police station and get you NIE and recidencia you can register the kids into school and at the doctors........beware the paperwork is a nightmare.
2 of my children were born in Tenerife and my little girl just 4 months ago

[Goldenmaniac]

Guideline for tax rates for 2012

Taxable base in Euros Rate of Tax %

0 - 17,707.20 -- 24.75
17,707.20 - 33,007.20 -- 30.00
33,007.20 - 53,407.20 -- 40.00
53,407.20 - 120,00.20 -- 48.08
120,00.20 - 175,000.20 -- 50.08
175,000.20 - 300,000.20 -- 52.08
300,000.20 - Over -- 53,08

have a look here (In English) http://www.agenciatributaria.es/AEAT.internet/Inicio_en_GB/English/Non_residents/Non_resident_Income_Tax/Non_resident_Income_Tax/Residency_issues/Residency_issues.shtml

[djulie]

When we first moved here we found it very helpful to use a reliable gestor/assesoria who pointed us in the right direction and aided in acting as a translator. Perhaps some of the ex pat oil workers have used someone they could reccomend? You may need to take specific tax advice here and in the UK. Once you decide who to trust for help listen to them - everyone (me included) has different experiences and advice; most are invaluable insights but sometimes I found myself overwhelmed with well meaning but contradictory advice.

The paperwork can be onerous but once you accept things are done differently life is much simpler. Keep a record of all the steps you take along the way so you can refer back to them when required.

Meanwhile, learn Spanish, plan ahead and use sites like the Forum to the full as they are great sources of information. Have a wonderful Christmas and look forward to your new lives in Tenerife. It is a wonderful place to live.

[hailfuzz]

we have a daughter that will need to go to a school in a years time so will have to declare residencia for that. My husband will have to register for tax purposes in a country - in the uk its 40%. He works for a uk company but overseas and not in uk waters.

If your husband is employed from a UK company and gets paid from the UK you must pay full UK tax, but if he gets paid from channel islands or any overseas country and works outwith uk then he won't need to pay in the uk.