Tax Residence

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This topic contains 8 replies, has 3 voices, and was last updated by Profile photo of Anonymous Anonymous 6 years, 4 months ago.

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  • #55749
    Profile photo of Anonymous
    Anonymous
    Participant

    You can bei Spain up to 183 days in any one year and be non resident. If you are resident or visit UK 90 daysa year in any 4years you are UK resident. How can you be tax resident in both and can you be doubly taxed?

  • #99653
    Profile photo of Anonymous
    Anonymous
    Participant

    Spain and the UK have a double taxation agreement, so tax paid in one country will be offset against the tax paid in another.

  • #99837
    Profile photo of Anonymous
    Anonymous
    Participant

    Spain and the UK have a double taxation agreement, so tax paid in one country will be offset against the tax paid in another.

  • #99841
    Profile photo of Anonymous
    Anonymous
    Participant

    Very true but that is only an offset. The difficulty surely is that you are still liable to pay at the higher rate of the two countries. For example income from earnings is charged at 24% in Spain above the personal allowance which is lower in Spain to age 65 and much lower therafter -so that becoming Spanish resident is positively disadvantageous. The only possible advantage is to obtain CGT exemption on a residence in which one has lived at least 3 years if one is over 65. But there are a lot of sums to do including mention of the 8% tax on pensions which is good if you have a large one but a disadvantage if you are below or modestly above the £9350 pensioner UK tax thresold. It seems quite a minefield without mentioning inheritence tax where the free amount is only about 15000 euro before they start to charge you in Spain unless you have a lot of brothers and sisters you can spread it round with extra 15000 exemption for each regardless of whether you want to give it them or they even need it !

  • #99655
    Profile photo of Anonymous
    Anonymous
    Participant

    Very true but that is only an offset. The difficulty surely is that you are still liable to pay at the higher rate of the two countries. For example income from earnings is charged at 24% in Spain above the personal allowance which is lower in Spain to age 65 and much lower therafter -so that becoming Spanish resident is positively disadvantageous. The only possible advantage is to obtain CGT exemption on a residence in which one has lived at least 3 years if one is over 65. But there are a lot of sums to do including mention of the 8% tax on pensions which is good if you have a large one but a disadvantage if you are below or modestly above the £9350 pensioner UK tax thresold. It seems quite a minefield without mentioning inheritence tax where the free amount is only about 15000 euro before they start to charge you in Spain unless you have a lot of brothers and sisters you can spread it round with extra 15000 exemption for each regardless of whether you want to give it them or they even need it !

  • #99863
    Profile photo of Anonymous
    Anonymous
    Participant

    It would be wise if in this situation to obtain professional advice to maximise your tax allowances and minimise liability. The tax system in Spain does seem harsher than UK, we would be worse off, but in certain circumstances some people benefit from being tax resident in Spain.

  • #99666
    Profile photo of Anonymous
    Anonymous
    Participant

    It would be wise if in this situation to obtain professional advice to maximise your tax allowances and minimise liability. The tax system in Spain does seem harsher than UK, we would be worse off, but in certain circumstances some people benefit from being tax resident in Spain.

  • #99874
    Profile photo of Anonymous
    Anonymous
    Participant

    You have to take tax advise in Spain & in UK. You will be lucky to find one who is equally aware of the two systems & marry them to your benefit.

  • #99674
    Profile photo of Anonymous
    Anonymous
    Participant

    You have to take tax advise in Spain & in UK. You will be lucky to find one who is equally aware of the two systems & marry them to your benefit.

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