Retiring in Spain

As of 1/1/21a uk national can only spend 90 days in 180, unless you get residence status. At present that is not too difficult ( income for a single person about 6,500 per year, for a couple 12,000) however after 1/1/21 it will become a lot more difficult in that the income required will be much more ( 26,000 Eu per year for a single person, maybe around 33,000 for a couple) and even uk  OAPs will need private cover to meet medical cover requirements.

Thanks John. We are paying for an agent to get our NIE etc, hopefully in time before 1/1/21.
The tax question if we get the residents status?
I am going to the medical insurance too.
OAP ha! I feel about 36 not 66!

Take care.   

An NIE is only a fiscal number which confers no right to live here.

If one is intending to live here that does not justify the issue of an NIE.  When a TIE is issued the number it will bear will be your NIE (numero de extranjero).

To live here you will require a TIE.

Please do not use the incorrect terminology as it is very likely to
lead to confusion and problems.

The medical cover must be 100% without any exemptions and without co-payments.

Thanks John I meant TIE. Where are you based?

Costa del Sol

The Spanish tax year is the calendar year and runs from 01 Jan to 31 Dec.

If you are in Spain for more than 183 days in a calendar year you automatically become a tax resident and MUST declare all your earnings, from any source, anywhere, for the entire year, on your tax return. You will be taxed on all of it, even if you have already paid tax (eg PAYE).

You then have to request a refund of the tax you already paid in the UK. If the tax you paid in the UK was less than the Spanish tax, you will have that much refunded. If the tax you paid in the UK was more than the Spanish tax, you will be refunded the equivalent of the Spanish tax, you lose the difference.

Examples

You paid £100 UK tax and Spanish tax is (equivalent of) £120. You will be refunded £100.

You paid £100 UK tax and Spanish tax is (equivalent of) £80. You will be refunded £80.

One thing I would add. From your initial question, I think you have a long way to go in terms of research into iiving in Spain permanently after 01.01.2021. You need to do this way before you make such a commitment.

Visit this Government website and read everything there. Click on the 'stay up to date' to receive real-time email alerts.

GOV.UK Living in Spain

Look particularly at Tax (you will need to hire a professional tax advisor) and Healthcare. Good luck.