View Full Version : Tax The bank has blocked my account due to residency status

31-12-2013, 13:22
Last year we applied for and got a green card/residencia so that we could fly to Lanzarote cheaply! We are swallows who own property in Tenerife but stay less than 6 months per year and pay income tax in England.
Last week our bank told us that they have blocked our non residents account and no further money (my pension!!) can be deposited in it. I will have to change to a residents account or renounce my residency.
Can anyone tell me which would be best for us to do?
Are there any advantages in remaining residents?
Were we even entitled to the green card in the first place?
Am now going to plough through all relevant info on this forum but would appreciate any advice from someone in the meantime.

31-12-2013, 13:34
So, to get 30% off the price of fares within the Canaries you are now faced with a problem which is affecting you.
Change status to non and get on with life. You are not residents from what you,ve said, I mean you don,t qualify to be one of us!

31-12-2013, 13:40
Thanks, Timmilish.
There was no attempt to deceive on our part.
At the time we were told that we were entitled to the green card and the travel forms.

31-12-2013, 15:02
As far as I can see there are no advantages in becoming a resident in Tenerife for tax purposes only some very real & present problems, especially at your age.

It is difficult to imagine going through all the aggravation & costs that goes with Residencia just to save a few euros on a plane ticket, unless you are going several times a week.

Agree with the advice, if you are not here more than 183 days a year revert back.

31-12-2013, 15:27
I'm pretty sure having the Green Certificado does not automatically make you liable as a fiscal resident , especially as you don't stay beyond 183 days (though there are other new criteria to determine UK tax liability/residency http://www.hmrc.gov.uk/international/rdr3.pdf )
By Changing your Bank account to Resident you will be able to use it as you wish - I think in theory as you leave after 6 months , you are supposed to "Baja" your residencia and renew each time , what a pain !
I would think someone like Goldenmaniac would be able to advise you on your position!

31-12-2013, 16:32
I agree, change back. Its not worth the hassle. There is no great advantage in being a resident.
I had a look but didn't fancy it so just stay the permitted time.

01-01-2014, 00:49
Finally, make damn certain that you have excellent Private Health Insurance to ensure that health is adequately covered.