 TAX ADVISORY SERVICE FOR SPANISH PROPERTY OWNERS AND TAXES IN SPAIN
www.blevinsfranksinternational.com
If you spend more than 183 days in Spain during the tax year (calendar year) you will become a Spanish tax resident, whether or not you take out a formal residence permit.
A brief guide to taxes in Spain.
If you move to Spain permanently for six months or more you will almost certainly become tax resident and be obliged to pay income, capital gains, and wealth taxes on your worldwide assets and be subject to Spanish inheritance and gifts tax rules.
Ever since taxes were first imposed, people have been finding ways of avoiding them. In today’s world, though, tax planning has become highly complex, with the Spanish, UK and international tax agencies declaring war on tax evasion and teaming up to track down evaders.
Are you planning to retire in Spain? If so, now is the time to review your finances to ensure you can afford your dream and that you’ll have enough capital to support you right through your retirement years.
+ Getting the most from your pension in Spain
+ How UK or British pensions are taxed in Spain
It is important for anyone who owns property in Spain, or other Spanish assets, to familiarise themselves with Spanish succession tax on inheritances.
+ Spanish succession tax update October 2007
+ Spanish succession tax for cohabitating couples and remarriages
+ Spain referred to the ECJ over succession tax rules
Most Britons moving to Spain or buying property there understand that they will have to pay Spanish taxes like income tax, capital gains tax and inheritance tax. Not everyone, however, is aware that Spain imposes an extra tax, one with no equivalent in the UK and which is payable on top of the other Spanish taxes: Wealth Tax.
+ Spanish wealth tax (patrimonio) eliminated from 1 January 2008
+ Spanish wealth tax (patrimonio) reintroduced for 2011 & 2012
The road to buying and owning property in Spain can be lined with potential pitfalls where taxes are concerned. Be aware that the Spanish taxman is actively on the hunt for non tax payers and you would be wise indeed to arm yourself with the property tax laws if you are thinking of owning a holiday home in Spain or if you are contemplating moving there.
It can be surprisingly difficult to establish one’s tax residence in certain circumstances. The onus is on the taxpayer to get it right in order to avoid the charge of tax evasion, which can lead to financial penalties and/or criminal charges.
The European Union Savings Tax Directive (STD) came into force on 1st July 2005. Its aim is to retrieve the billions of Euros lost in tax due to undisclosed income, much of it previously ‘hidden’ in offshore bank accounts.
+ Non-resident withholding tax rate on offshore savings rises, as EU Savings Tax Directive turns three years old
The Blevins Franks Tax Advisory Service (“TAS”) was originally established in 1983 when Blevins Franks opened its overseas offices in Spain, France and Portugal to offer specialised tax planning, relevant to both the UK and our overseas offices. The service is designed for foreign property owners and for those deciding to live abroad, both prior to and following departure.
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