Thanks to an article I was pointed to by the excellent Barry Davys at Expat Financial I asked myself this question over the weekend, what type of person can keep their job in the UK but live in Spain? (You can find the original article here)
Obviously those who earn a lot of money in the UK are hurting (Figuratively speaking) at the moment because of the increases in taxes in the Budget a couple of weeks ago. So if you earn a lot of money and want to keep a greater proportion of it how can you do that? If you pay your tax in Spain there is a maximum tax rate levied at 43% for income over 53000 Euros with child allowances and a personal exemption still in place.
To be charged Spanish taxes you would need to come to an arrangement with your employer to pay your salary in Euros over here and obviously to become a resident of the country. This is all possible although I am no expert in giving out advice I do know a lot of people who are so ask for details.
Other advantages are that inheritance tax on property has been abolished with Valencia for example, just like in the Basque Country and Catalunya, for residents of the area. This has had a profound influence on the declared value of inherited properties which have suddenly tripled on the deeds! (If you pay no IHT but do pay capital gains tax then obviously overestimate the value of the property on inheritance)
What types of jobs can benefit from this less swingeing tax regime? Well if you are in financial products, offshore drilling or the oil industry in general, remote work eg IT services and so many other areas where it doesn’t matter where you work then living and working in Spain suddenly becomes an option. One thing you need to consider is the availability of cheap or low cost flights from a recognised airport back to the UK for those times when you need to be there for meetings or something, so Valencia, Barcelona, Madrid and Malaga should be looked at as good bases. All you need really is a good internet connection, a compliant company, or to work for yourself, and the guts to do it and you too could have your family living in a much more family friendly environment.
Have you got what it takes? And if you have here is a book that will help you get that planning going.
(And even if that is not your plan this book will change the way you look at everything)
For more information about great places to live to take advantage of this benefit of living abroad go to www.valencia-property.com