Move to Spain from United Kindgom

If you’re moving to the UK on a long-stay visa, your tax obligations will depend on your residency status, income sources, and the specific visa route you hold. Here’s a breakdown of the main taxes to expect:

1. Tax Residency Status

Tax Resident:
You are generally considered UK tax resident if you spend 183 days or more in the UK in a tax year, or if you meet other criteria under the Statutory Residence Test (ties such as UK accommodation, work, or family). Tax residents are usually taxed on their worldwide income, unless they qualify for the remittance basis.

Non-Tax Resident:
If you do not meet residency criteria, you are typically taxed only on UK-sourced income, such as UK employment, rental income, or profits from UK property.

2. Taxes for Tax Residents

Income Tax:
Tax residents pay income tax on worldwide earnings including salary, business income, pensions, rental income, and investments.

Progressive Tax Rates (England & Northern Ireland):

• Up to £12,570: 0% (Personal Allowance)*

• £12,571 to £50,270: 20%

• £50,271 to £125,140: 40%

• Over £125,140: 45%

*Personal Allowance is reduced once income exceeds £100,000.

Capital Gains Tax (CGT):
CGT applies to profits from selling assets like property or investments.

• 10% (basic-rate taxpayers)

• 20% (higher-rate taxpayers)

• Residential property gains: 18% or 28%, depending on income level

National Insurance Contributions (NICs):
If you work or are self-employed, you must pay NICs, which contribute to the state pension, healthcare access, and other benefits.

• Employees: 8% on earnings above £12,570 (reduced rates above certain thresholds)

• Employers: 13.8%

• Self-Employed: Class 2 and Class 4 NICs apply, depending on profits

Other Taxes:

• Council Tax: Local property tax paid by tenants or owners, based on the valuation band of the home.

• VAT: UK value-added tax is 20%, with reduced rates of 5% and 0% for certain goods and services.

3. Taxes for Non-Residents

Non-Residents are taxed only on UK-sourced income, such as:

• UK employment income

• Rental income from UK property

• Profits from selling UK property (subject to CGT)

Rental Income:
Taxed at the same income tax rates as residents, although non-residents may be part of the Non-Resident Landlord Scheme, where tenants or agents deduct tax at source.

Capital Gains From UK Property:
Non-residents must report and pay CGT on the sale of UK property, regardless of residency.

4. Special Tax Regimes for New Arrivals

Remittance Basis (for Non-Domiciled Individuals):
New arrivals who are UK residents but not UK-domiciled may elect the remittance basis, meaning they are taxed on UK income and only on foreign income if brought into the UK.

• The remittance basis is free to claim initially.

• After several years of UK residency, charges apply (£30,000–£60,000 depending on years resident).

• Not all visa categories allow the remittance basis (e.g., Skilled Worker visa holders typically can use it unless restricted by their sponsor or financial circumstances).

Inward Investment Relief:
Certain individuals bringing assets or investments into the UK may qualify for relief to avoid immediate taxation on foreign gains.

5. Tax Filing Obligations

Self Assessment Tax Return:
Many residents must file an annual tax return reporting worldwide income, foreign assets, capital gains, and deductions.

Capital Gains Reporting:
Sales of UK property must be reported within 60 days of completion, even for non-residents.

National Insurance Number:
Most workers must obtain a NI number for employment or self-employment.

Property Taxes:
Owners of UK property must pay council tax and file any necessary returns for rental or capital gains.

Your tax obligations will depend on your residency status, income sources, and whether you qualify for special regimes such as the remittance basis. Consulting a UK tax professional—especially if you have foreign assets, multiple income sources, or investments—can help ensure compliance and optimise your tax position.