Spain also fiscally attractive
English people who plan to stay in Spain for a large part of the year can expect a particularly mild arrangement by the Spanish taxpayer.
183 days settlement
If you only occasionally visit your second home in Spain, the benefits are limited. By contrast, it is particularly interesting if you expect to stay large parts of the year in Spain. If you stay for 183 days or more in Spain then you have the opportunity to settle as a resident. In that case, you will be taxed as a resident of Spain and you will benefit from the tax benefits that Spain offers compared to the United Kingdom.
The tax benefits primarily translate into lower income taxes, lower capital gains and, above all, significantly lower inheritance taxes. In Spain, certain categories of income are entirely exempt from Income Tax.
Income and capital taxes are imposed by the central government. Collection fees are levied by the municipalities or districts. Rates vary greatly by district. For people with wealth, there are opportunities to pay virtually no inheritance fees.
The English tax payer also has inheritance rights for English who, within 10 years after leaving the United kingdom, will die. This rule appears to be in violation of European law. At the moment there is a case before the European Court, which challenges the legality of this measure.