Spain 183 day rule - still being implemented?

[whiteoaks7]

What's the latest on the 183 day 'luxury vehicles' law in Spain - are the regions still applying it? Are people actually being caught and fines (sorry - taxes) collected? Do regions vary in their approach / aggressiveness / amount collected? I remember the CA were reporting that Spain intended to start applying it more strictly - did this happen?

From what I remember the law relates to the owners of boats being resident (i.e. exceeding 183 days in the country) but does this mean that if my UK based daughter owned the boat while I was just the skipper that this would sidestep the risk?

 

[sailaboutvic]

What's the latest on the 183 day 'luxury vehicles' law in Spain - are the regions still applying it? Are people actually being caught and fines (sorry - taxes) collected? Do regions vary in their approach / aggressiveness / amount collected? I remember the CA were reporting that Spain intended to start applying it more strictly - did this happen?

From what I remember the law relates to the owners of boats being resident (i.e. exceeding 183 days in the country) but does this mean that if my UK based daughter owned the boat while I was just the skipper that this would sidestep the risk?

The few people that I know who have been caught out are people who have been in Spain for quite a while and where
A , running an bussness from their boat or
B , lived in Spain own an apartment and where keeping their boat there .
Some years back when we wintered out in Almarimar there was a crack down on boats but although quite a few of us have been there for more then 183 days the only people they where interested in was has I said above , the other 20 or so boats wasn't bothered .

 

[Mylo73]

Hi folks, long time lurker - but have just registered as it looks like my move to being a liveaboard is about to happen very shortly so will no doubt be asking questions (in fact, I know I will).

This topic interests me greatly as it was in my plans to spend the majority of my time in Spain. I've read extensively on taxes being paid on boats and I'm still none the wiser as to how it applies as there seems to be a lot of conflicting views and opinions.

If I buy my boat in the UK and pay tax on it here - how does this impact on staying anywhere else for a perceived length of time; i.e Spain? Are you better to buy and tax the boat in the country you intend spending the longest?

 

[nortada]

I suspect there could be some confusion here between individuals who exceed 183 days in the country who can be regarded as residents for tax purposes and those who have property (cars, boats etc) in permanently in country but do not themselves exceed the 183 day rule.

A complicated area but to answer the specific question are these rules being enforced, from what I hear, no more than before so not an issue to worry about.

 

[jimbaerselman]

What's the latest on the 183 day 'luxury vehicles' law in Spain
<big snip>

Anyone spending more than 182 days per calendar year in Spain becomes a tax resident of Spain. This is a matter of fact.

Separately, if you intend to keep a boat (or car) in Spain for more than 180 days in any year, this "Means of Transport" must be declared. Its use will then become subject to local Spanish regulations (though it won't necessarily have to be re-registered) and you'll have to pay certain circulation taxes.

If, in addition, you are/become a tax resident, it will be added to your "wealth" held in Spain, which may include property. Assets you hold in Spain are then subject to local taxation. Above a certain level, a "wealth tax" may kick in.

If, as a tax resident, you don't declare the boat's import into Spain within 30 days, you will become liable to a pollution tax. It's value is computed from complex tables depending on engine size, type and age of boat. This can be a substantial sum, over 10% of market value of the boat.

To avoid this payment, before you bring the boat in, or before you become tax resident if your boat is already there; consult a Gestor familiar with marine matters. They will explain the process, and advise what steps to take to avoid paying "pollution" tax. You'll be stuck with circulation and wealth taxes.

Until 2012, a number of people tried to stay "under the radar" to avoid such payments. A percentage failed, and on being detected, were fined, and moaned about "unfair taxes". It's known that one or two live-aboards, unable to pay, had to sell their boats. It's not known what percentage of tax evaders got away with it.

The Cruising Association has comprehensive advice available to members on what restrictions apply in individual countries, and the degree to which these are policed/implemented.

Generic EU/Schengen advice as to the restrictions on people (immigration matters) and on boats (customs matters) is availble on my web site - http://www.jimbsail.info/going-foreign/time-abroad

 

[phantomlady]

Our friends were in Rota marina before Christmas and were surprised to find a man photographing the stern of their yacht. Upon questioning him they were shocked to learn that he was making a record of their being in Spain for future reference regarding how long they were spending there and the tax/importation rules.

 

[boatmike]

Jim, reading your always informative mails I understand the issue of residency for tax purposes. However can you please confirm that if you don't spend 183 days in Spain personally but keep your boat there for more than 180 days (in other words overwintering say in a Spanish marina ashore or afloat) there is no need to be concerned with any of this? If you did intend to indicate that keeping a boat in Spain for more than 180 days requires that it be "imported" and subject to "certain circulation taxes" even if the owner is not resident, can you be more specific please? What are circulation taxes?

 

[Tranona]

There are no restrictions or taxes to pay if you keep your boat in Spain provided you are non resident. That is you do not spend more than 182 days there. If you do that you should apply to become resident. Then you may be liable to taxes on your assets. However the specific tax on your boat can be avoided by declaring it at the same time.

 

[boatmike]

Well that's what I thought Tranona but Jim's post...........

Separately, if you intend to keep a boat (or car) in Spain for more than 180 days in any year, this "Means of Transport" must be declared. Its use will then become subject to local Spanish regulations (though it won't necessarily have to be re-registered) and you'll have to pay certain circulation taxes.

........seems to indicate otherwise. As he normally knows what he is talking about I asked for clarification as you can read this as 180 days regardless of residency. I always thought that you can keep your boat anywhere in Europe for as long as you like if you are resident for less than 183 days as you say.

 

[Tranona]

Not sure that Jim is right there. That is a generic EU principle, but I believe circulation taxes for boats are not charged separately but included in marina fees so you will pay them every time you use a marina. The main tax that caught people out when becoming residence was the so called "environmental" tax applied to boats in addition to VAT on boats as a one off, plus the annual wealth tax that applies to residents. The one off tax, as he says can be avoided by declaring the boat when you become resident. In the past you also had to switch to Spanish registration, but this is no longer the case.

So, you are quite safe, like many thousands of others, in visiting Spain, keeping your boat there and using it when you want provided you keep clear of the 182 day rule.

 

[boatmike]

That's pretty well what I thought Tranona and would not have questioned it were it not for Jims post. I am still not sure if he meant to indicate that this only applies if resident but I will assume as you say that it can be ignored if you stay less than 182 regardless of how long the boat is kept there unless anyone knows different.

 

[nauticalnomad]

Can you not just drive to Portugal on day 178 and spend a few days there before driving back to Spain....That will start the 183 days thing all over again.

 

[macd]

Can you not just drive to Portugal on day 178 and spend a few days there before driving back to Spain....That will start the 183 days thing all over again.

The 183 day limit is per annum, not continuous, so your journey to Portugal would be wasted.
But why Portugal? That'd be pretty daft if one were in, say, Barcelona. Or La LInea.

 

[jimbaerselman]

Jim, reading your always informative mails I understand the issue of residency for tax purposes. However can you please confirm that if you don't spend 183 days in Spain personally but keep your boat there for more than 180 days (in other words overwintering say in a Spanish marina ashore or afloat) there is no need to be concerned with any of this? If you did intend to indicate that keeping a boat in Spain for more than 180 days requires that it be "imported" and subject to "certain circulation taxes" even if the owner is not resident, can you be more specific please? What are circulation taxes?

Thanks for picking that up. Text "must be imported" should read "EU directives allow that boats should be imported".

There's a difference here between what EU directives for Means of Transport (MoT - EU speak for cars, boats, planes, & horse and cart combos) permit or don't permit, and what is current Spanish practice. For cars, Spain insists that any foreign registered car must be "imported" to stay longer than 180 days a year in Spain. However, they only apply this rule to boats if you're a tax resident.

Spain charges T0 and T5 fees on boats as soon as they arrive in Spain; usually incorporated in marina bills. One is a "signals" payment, the other an overall "harbour dues" payment. Arguably, EU directives would classify these as "circulation taxes", which should only be charged if your MoT has been in Spain for over 180 days. Hmm.

Portugal, of course, does apply the 180 day import rule to boats (irrespective of tax residence), which is why demands for T2L (proof of free circulation within the EU documents) have arisen there.

Having said all that, there are inconsistencies between different regions, and different officials within regions, as to how they apply regulations. So, personally, I always check with a reliable local source (Gestor with maritime experience, in Spain) before planning to keep my boat (or car!) more than 180 days in another EU country!

Clear as mud, eh!

 

[GrahamM376]

Portugal, of course, does apply the 180 day import rule to boats (irrespective of tax residence), which is why demands for T2L (proof of free circulation within the EU documents) have arisen there.

Although entitled to do so, in practice Portugal do not apply the 180 day import rule.

Several thousand of us (many nationalities) are here well over 180 days, many permanently, and only a handful have ever been asked for T2L documentation. I would hazard a guess that some if not all of those boats may have been pretty new and suspected of having been zero rated for export but still in residence within the EU.

Portugal doesn't in general give a damn how long your boat or you are here for, although UK cars parked in the same spot or used in the same area for long periods do sometimes raise questions about not being on Portuguese plates.

edit - the last paragraph above concerned attitude to taxes/residence. They do care how long your boat is here as, after 180 days, safety equipment must be as specified for Portuguese flagged boats.

 

[maxi77]

Although entitled to do so, in practice Portugal do not apply the 180 day import rule.

Several thousand of us (many nationalities) are here well over 180 days, many permanently, and only a handful have ever been asked for T2L documentation. I would hazard a guess that some if not all of those boats may have been pretty new and suspected of having been zero rated for export but still in residence within the EU.

Portugal doesn't in general give a damn how long your boat or you are here for, although UK cars parked in the same spot or used in the same area for long periods do sometimes raise questions about not being on Portuguese plates.

edit - the last paragraph above concerned attitude to taxes/residence. They do care how long your boat is here as, after 180 days, safety equipment must be as specified for Portuguese flagged boats.

I agree the requirement for a T2L is not normal, one suspects that those who are asked have 'offended' the authorities in some way, especially as marinas do report all foreign vessels to the authorities. Equally so far they do not actively pursue overstaying UK registered vehicles other than those who use the long term car park at Faro too often. I suspect though that considering the continuing pressure on the GNR to maintain the income from fines expat cars may well come under the spotlight soon

 

[boatmike]

Thanks for "clarifying" that Jim...... I think....... I am reminded what an Indian Gentleman recently told me (we have just got back from Goa) " The British taught us bureaucracy but we have perfected it" Sounds like Europe are doing a pretty good job too......

 

[Wansworth]

My daughter took her car to the Uk and had the use of it legally fro six months..... she brought it back and returned by air and bought an old UK car.You can get away with it in most places like our nearest brit who hides his van in his shed and uses it occasionally but one day you will be stopped.

 

[Mylo73]

I'm now even more confused

Due to my work and taxation and I'm going to be going under the 110 days per year rule in the UK. My plan was to spend the majority of my time in Spain - but as I now understand it, I'm limited to 183 days?

Does it make any difference to this rule if your boat is bought and taxed in Spain?

 

[jimbaerselman]

I'm now even more confused

Due to my work and taxation and I'm going to be going under the 110 days per year rule in the UK. My plan was to spend the majority of my time in Spain - but as I now understand it, I'm limited to 183 days?

Does it make any difference to this rule if your boat is bought and taxed in Spain?

You're not "limited". It's just that you become tax resident in Spain if you spend more than 182 days per calendar year here.

Note that "calendar year" means you can spend the last half of one year, plus the first half of the next year, beofre you become tax resident.

Before you become tax resident, you'll need to declare your intention to import your boat, without re-registration. At this stage, it's very useful to take the advice of a gestor.