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Brexit key cause of exports decline, government data shows
(www.thegrocer.co.uk)
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As far as I know people move to Spain when they retire because the cost of living is much lower there. So they get their pension from the country they are from and the pay Spanish taxes since the line in Spain.
So they avoid the tax in their home country which often is higher.
It's ok if you want to think that there is an enormous tax fraud going on, it doesn't matter.