fiscal residency

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This topic contains 5 replies, has 5 voices, and was last updated by Profile photo of Anonymous Anonymous 9 years, 4 months ago.

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  • #51667
    Profile photo of Anonymous
    Anonymous
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    I own a property in spain and am non resident. I declare all my rental income to the Hacienda and pay tax on this every quarter.

    I would like to consider fiscal residency because i am considering staying in spain over 6 months a year, I wish to be able to claim allowances against my rental income and i want to reduce my capital gains tax if and when i sell.

    My question is this; is there a simplified (and in English – I don’t think I could manage Spanish tax-speak) website or document which would enable me to understand the way my income (from UK pensions, dividends and share sales would be taxed)?

    I would like to see something similar to the UK where there is a tax free personal allowance of say £5,000 then a tax of 10% on the next £2,000, 22% tax on the next £33,000 etc. Also what is capital gains tax on sales of foreign equity assets?. And is my entitlement to NHS services affected?

    Any help in finding an appropriate, and simplified site or document would be appreciated.

    I guess the bottom line question is how does income tax (& National Insurance) in Spain differ from the UK and is it better or worse etc.

    Thanks for any help.

    Regards

    Tudor

  • #61794
    Profile photo of Anonymous
    Anonymous
    Participant

    ashtondav.

    My question is this; is there a simplified (and in English – I don’t think I could manage Spanish tax-speak) website or document which would enable me to understand the way my income (from UK pensions, dividends and share sales would be taxed)?

    Non residents:

    The official Tax Administration Authority (Agencia Estatal Tributaria) does provide information in English in its website:

    Go to http://www.aeat.es/ and click on the ‘no residentes’ tab in the left column, the click on ‘Tributación de no residentes’, you’ll find the English version info there

    appropriate, and simplified??? The Tax Authorities???? AKA Hacienda Pública or, in short, H.P. (This acronym is the Spanish for S.O.B.)

    Well, you cannot expect that even in the Spanish version

    is there a simplified (and in English – I don’t think I could manage Spanish tax-speak) website or document which would enable me to understand the way my income (from UK pensions, dividends and share sales would be taxed)?

    Residents (more or less the same as every Spaniard)

    I’m afraid there is not a simple way to explain a complex system. Every article, text, document which tries to simplify this issue can be both inaccurate and misleading… and typing ‘spanish taxes’ in google wont help much.

    If you are seriously considering becoming a resident here look for an English speaking but Spaniard tax lawyer or economist.

    As one of my tax law teachers used to say It is completely impossible for anyone to know and master the more than 5,000 legislative measures introduced in the Spanish Taxation Laws since 1975… well for anyone but us pupils if we wanted to pass his exams 😥

    Cesar

  • #71849
    Profile photo of Anonymous
    Anonymous
    Participant

    It seems to me that life in Spain runs more smoothly if one has Residencia.However, for tax reasons I have to remain an Irish Resident for at least two more years so would it be unusual or indeed possible for my wife to take up Residencia if we both live most of the year in Spain ?

  • #73621
    Profile photo of Anonymous
    Anonymous
    Participant

    If you both live in Spain for more than 183 days in one calendar year, irrespective of whether you have applied for a resident’s certificate, then you become tax residents – whether you like it or not.

    You have no option about where you pay your tax – if you live in Spain you will be liable for Spanish income tax.

    If you want to be still be considered Irish tax residents then you will have to live, for most of then year, in Ireland.

  • #73700
    Profile photo of Anonymous
    Anonymous
    Participant

    Try visiting http://www.spainaccountants.com lots of useful info regarding tax.

  • #73740
    Profile photo of Anonymous
    Anonymous
    Participant

    Thank you El Cid and Julia for taking the time and making the effort to reply. It looks like they ( the Tax Authorities ) have you whichever way you turn.

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