Understandably, more and more people are moving to our beautiful ‘White Island’, Ibiza from all over the world! Whether you plan to retire in Ibiza or move here with a young family, there are a number of practical considerations to consider. Not surprisingly there is no shortcut to expert local specialist legal and tax advice but here are a few pointers from ZAN:
Passing your property on is probably at the very bottom of your list of things to think about when moving abroad – that’s if it even appears on the list at all. However, there are a number of things you will need to take care of, such as making sure that your will covers your Spanish assets. Even how you set up the purchase of your property in the early stages will have enormous bearing on how your estate will be dealt with and taxed in future. As inheritance tax can be as high as 34-per-cent, it is well worth planning thoroughly with your solicitor and financial advisor.
Taxation in Ibiza
Where you are deemed to be resident affects what taxes you pay as well as in which country, and it is vitally important to understand these implications. There is a double taxation agreement between Spain and most countries, which means that you shouldn’t be taxed for the same things twice. However whether you are considered resident in Spain or elsewhere depends on factors such as how much time you spend in each country and where the majority of your assets are held. You should find out about wealth tax, capital gains tax, as well as local taxes – your lawyer should be able to advise you on this as well as how to go about obtaining an NIE – a local spanish tax identification number.
People think about retiring abroad for a range of reasons, such as a change of lifestyle, or cheaper cost of living. However, retirees will have specific questions that need to be addressed, whether it is about pensions, healthcare or tax. This is a decision that shouldn’t be rushed, and research, professional advice and good planning are all essential to making the move a successful one.
Schools in Ibiza
The first thing to decide is whether to educate your children at a local state school, local private school or whether to put them into an international school. In the Spanish state schools the education is free. The local private schools and international schools cost somewhere between 4,000€ and 8,000€ per child per year. An exception is the French school in Ibiza which is free for french nationals.
Public Healthcare in Ibiza
Knowing that you will have access to good-quality healthcare providers is a big consideration when moving abroad. It is also important to know what you are entitled to. It is vital to research what you and your family are entitled to. There are also a number of very good private healthcare programs available in Spain.
Please note that the laws in Ibiza change very often and although I have done all I can to correctly interpret the situation and the law the above is in no way full legal advice, but only my interpretation, and it does not substitute the legal report of a lawyer.