Moving to Ibiza: schools, healthcare, taxation, work permits, residence cards

The exodus is in full swing: according to the Instituto Nacional de Estadistica there were 160,000 UK-born people are already living in Spain in 2003, and Mintel’s research says that this number is growing. Whether you are retiring to Spain or moving there with a young family, there are a number of practical considerations to think about. There is no shortcut to good specialist legal and tax advice but here are some pointers to think about beforehand

Inheritance

Passing your property on is probably at the very bottom of your list of things to think about when moving to 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 the UK and Spain, which means that you shouldn’t be taxed for the same things twice. However whether you are considered resident in Spain, the UK 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 tax identification number.

Retirees

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. Age Concern (www.ageconcern.co.uk) produces a useful booklet 'Retiring Abroad'.

Work permits and Residence cards in Ibiza

If you are an EU resident, you can work in Spain without a visa or work permit. The type of permit you need, however, depends upon the job, whether it is permanent or temporary and in which region you’ll be working. Some are non-renewable or valid only for a certain period, others are permanent.

You should also find out about Residence cards – which, for example, are necessary if you are retiring to Spain. Again you should seek specialist advice.

Schools in Ibiza

The first thing to decide is whether to educate your children at a local school, or whether to put them into a ‘foreign school’. About 80 per cent of ex-pats send their children to a Spanish state school, where the education is free. 'Foreign schools’ can be international schools, or British schools which teach the British curriculum. It is worthwhile talking to other ex-pats to find out about their experiences, and consult you local Spanish town hall, and for British schools contact: NABSS (National Association of British Schools in Spain, www.nabss.org); the British Council www.britishcouncil.es, tel. (00 34) 91 337 3500); or ECIS (www.ecis.org, (00 44) 1730 268244).

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: for example EU residents are entitled to benefit from Spain's public healthcare system, but the rules are different for retired Britons drawing a UK pension. It is vital to research what you and your family are entitled to. A good place to start is to consult the Department of Social Security (www.dwp.gov.uk, 0191 218 7777) or Instituto Nacional de la Seguridad Social, (www.seg-social.es, 900 616 200) for advice.

Learning the language

If you are planning on moving to Ibiza for the long-term you may find that your ‘restaurant Spainish’ is a hindrance to integrating into local life and dealing with daily tasks of running your home.