free MOVING to spain GUIDE and checklist

There are four recommended must do's before you move to Spain to avoid surprises and to pay unnecessary taxes:

• Spanish taxation and reporting obligations: The system of personal taxation in Spain may be very different to what you have experienced in your current country of residence. It is recommended to do your research so you can budget effectively.
  
• Consider Selling your home before you move: It is likely that the value of your property would have increased if you have owned your own home for a long time. If you wait to sell your property until after you have become a tax resident in Spain then it's possible you will have a capital gains liability in Spain. There are exceptions if you plan to reinvest all the proceeds into another property or if you are over 65.  You may not have to pay twice if there is a Double Taxation Agreement between Spain and the country in which the property is based, however if the Spanish taxes are higher you may have to pay any difference to the Spanish tax authorities. 
• Tax Free Allowances (Savings & Pensions): If you have a savings or retirement plan that allows you to save or withdraw money tax then it is likely you would want to withdraw this before you become a Spanish tax resident. 
• Pensions: If you are anywhere near retirement, it's best to take professional advice from a regulated international pension specialist.   You may decide to leave your pension with an existing provider or move it abroad.   Only transfer your pensions with reputable and regulated providers, and pay attention to the small print on any management fees and costs.
  
• Importing your personal belongings: Goods imported to Spain are liable to import taxes. If the goods are being imported because of personal relocation, such as taking up residency in Spain from another country, there are some exemptions.   Consult with a removal company to ensure you take the right steps early.

If you need more guidance on taxation in Spain read our free guide on Spain and your Finances. We offer a one hour paid consultation with an English speaking qualified Spanish tax advisor and accountant.   In addition, it is recommended to seek professional advice from an international financial advisor depending on your personal circumstances.

• Visa/Residency & Other Paperwork: Visa and Residency, Exchanging Driving Licences, Finding Private Health Insurance, Registering for Public Health Care, Registering as Self Employed, Taxation Services
• Private Health Insurance: Depending on your circumstances this may be mandatory for your residency
• Travel Costs: Flights/Transport for your family and pets
• Accommodation:  It is generally recommended to budget for short- term rental property before you decide where you will permanently live or purchase a property
• Removals: For your personal processions / belongings.   Get clarity from shipping companies on any potential requirements to avoid/mitigate import duty
• Transport: Hiring, Leasing or purchasing a car or the cost of importing your car from your current country of residence. 
  

You could hire a company such as Help At Hand Spain to help you with Visa, Residency and Other Paperwork.   Here is a full list of our services.

• Renting a Property: Rent, Rental Security Deposit
• Owning a Property: Initial Property Purchase Costs (11-14% of property value), Mortgage Costs, Annual Property taxes (0.4% and 1.30% - Impuesto sobre Bienes Inmuebles / IBI based on cadastral value), Property Community Fees, 
• Shopping: Groceries/Food, Drink, Clothes, Other Discretionary Spend
• Entertainment: Subscription TV, Streaming Services (i.e. Netflix), Eating Out, Theatre, Cinema
• Motor Vehicle: Car Finance, Servicing, Fuel/Electric Charging  and other running costs including Annual Vehicle Circulation Tax /Impuesto Sobre Vehículos de Tracción Mecánica / IVTM, and Vehicle Safety Check Certificate / Inspecciòn Tècnica de Vehiculos
• Public Transport: Train/Metro, Taxis, Buses
• Utility Bills: Gas, Electric, Water, Mobile Phone, Internet
• Education: Public or Private schools / university, After school clubs, Lunch Fees
• Wellbeing/Clubs: Hobbies, Personal Grooming, Fitness/Gym
• Health Care: Private or Public Health Care Costs, Prescriptions
• Other Insurances: Car, Home, Life, Pets, Repatriation, Funeral
• Annual Taxes: Wealth/Solidarity Tax (if applicable)
• Professional Services: Tax/Accounting
  

If after moving you will take a pension or work income from abroad don't forget to take into account the variability in exchange rates.   The value of your income may go up or down.   To mitigate this risk you can use money exchange services with low fees and that allow you to automatically exchange money at pre-determined rates so you can maximise your money.   One such provider is Wise, learn more and sign-up to Wise using our partner referral link.