Tax credits etc

happyjames wrote:

Hi all,
Happy christmas to you all and a happy new year to come

I just wanted to know if i was coming out to live in spain and work in Gib, am i still able to claim my UK tax credits?

Also i understand there is a Gib tax releif for having a child, does anyone know much about that too?

Anyway thanks for your advice in advance.
Happyjames

Hi

I think you are asking if you can claim UK tax credits, Gib tax credits, and live in Spain, while working in Gib?  Is that right?  Mmm, I guess lots of people would like that one too.

Well to my knowledge no.  Not legally.    Although I may well be wrong.

If you are employed by the MOD and working in Gib you will be entitled to UK tax credits.  And UK taxes. 

That may well apply if you are on secondment from a UK firm too. I don't know.

If you live and work in Gib, you will be entitled to Gib tax benefits, credits, allowances, whatever, depending on your status.

But let me get this right, cos it seems a bit complicated.  I need to repeat it.  You want to live in Spain, work in Gib, claim UK tax benefits, and Gib ones too?  Haven't you forgotten the Spanish ones?  Don't you want to claim those as well?

Are you having a laugh?  I can't believe you are serious.

happyjames wrote:

Thank you for the advice Blu and for not jumping the gun like the other person who replied thinking I am just trying to rip the country off.

The other person, roughseas, is actually quite nice

One thing you need to research is the issue of double taxation. I don't know enough myself about tax in Gibraltar, but in places where your income is taxed at source by your employer (such as PAYE in the UK) you can end up paying tax in the country where you work (i.e. Gibraltar), and then being asked to pay tax in the country you are resident in (i.e. Spain) on your foreign income.

To avoid this, countries enter into tax treaties, so you only pay tax in one location. Given the antipathy between Gibraltar and Spain I've no idea how this might work, but I'm sure there are plenty of people here who have experience about this.

Roughseas may have some knowledge of this, as she is rich and has homes in both Gibraltar and Spain.

Blu

n.b. To any accountants reading, this is a rough outline of how things might work, professional advice is always good