Failure to do Spanish tax return first year resident?
Mar 2nd 2018, 6:33 pm
#1
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Joined: Mar 2018
Posts: 2
Failure to do Spanish tax return first year resident?
According to the Spanish tax rules, everyone needs to do a tax return the first year they become resident, even if they have no income to declare or no need to do one (Just so they can be in the Spanish tax system). I was wondering if anyone out there had been unaware of this rule and not done a Spanish tax return the first year they were resident? Wouldn’t the tax office know they were resident (through them having a resident Spanish bank account for instance) and send them out a tax return to do? Or would it only come to light later on if the person in question had a need to do a tax return for another reason? (And in that case, would they then have to do tax returns for all missing years, even if there is no income to report, or just for the first year they were resident?)
Hope someone who has had any similar experiences can help with this query.
Hope someone who has had any similar experiences can help with this query.
Mar 2nd 2018, 6:46 pm
#2
Forum Regular
Joined: Jul 2011
Posts: 86
Re: Failure to do Spanish tax return first year resident?
This would be the First full tax year, January 1st to December 31st.
Only if you are Resident for over 6 months of that year.
Only if you are Resident for over 6 months of that year.
Mar 2nd 2018, 6:50 pm
#3
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Joined: Apr 2007
Location: Córdoba
Posts: 1,558
Re: Failure to do Spanish tax return first year resident?
It happened to me - I was unaware I had to do it as my earnings were below the threshold (so colleagues told me). Got chased up for it a year or two later but it was easy to sort out, just went to the office with the notification and they sorted it for me.
For following years I can't help, I was doing the returns myself properly by then.
For following years I can't help, I was doing the returns myself properly by then.
Mar 2nd 2018, 7:27 pm
#4
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Joined: Aug 2012
Location: Granada Province
Posts: 549
Re: Failure to do Spanish tax return first year resident?
Not an accountant, but personally I would always do a tax return each year, even if it was essentially 'for info', you may even get a rebate on interest / retentions etc.. Keeps the clock running, remember after 3 years as a tax resident, your CGT liability in selling your house for instance can change drastically, dependant on your age. At over 65, you can effectively pocket the whole profit and pay no CGT. Big saving. Keep the clock running, put returns in every year. My personal but unqualified opinion. Bet you face no liabilty in your case, but also bet you may get some money back! I do every year!
Mar 2nd 2018, 7:38 pm
#5
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: Failure to do Spanish tax return first year resident?
I totally agree that you should do a first declaration to make sure you are in the system. However the tax office doesn’t always make it easy for you. I advised some friends to make a first declaration and they duly went to the local tax office who almost refused to process it as their income was below the threshold. After a couple of visits they finally got it done. The problem is that the taxman doesn’t seem to understand the need to do this as all Spaniards are in the system by default so this odd request would never arise.
With the recent changes to the online submission (its got much easier) there is no reason you can’t do it yourself or try and find a sympathetic man at the tax office.
As for subsequent annual declarations, I would agree that that is the most certain way of staying in the system for the tax allowances previously mentioned.
With the recent changes to the online submission (its got much easier) there is no reason you can’t do it yourself or try and find a sympathetic man at the tax office.
As for subsequent annual declarations, I would agree that that is the most certain way of staying in the system for the tax allowances previously mentioned.
Mar 2nd 2018, 7:39 pm
#6
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Joined: Mar 2007
Location: Costa Valencia
Posts: 14,800
Re: Failure to do Spanish tax return first year resident?
According to the Spanish tax rules, everyone needs to do a tax return the first year they become resident, even if they have no income to declare or no need to do one (Just so they can be in the Spanish tax system). I was wondering if anyone out there had been unaware of this rule and not done a Spanish tax return the first year they were resident? Wouldn’t the tax office know they were resident (through them having a resident Spanish bank account for instance) and send them out a tax return to do? Or would it only come to light later on if the person in question had a need to do a tax return for another reason? (And in that case, would they then have to do tax returns for all missing years, even if there is no income to report, or just for the first year they were resident?)
Hope someone who has had any similar experiences can help with this query.
Hope someone who has had any similar experiences can help with this query.
Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.
Please let me know if you need any further help.
Rosemary
Mar 2nd 2018, 7:40 pm
#7
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Joined: Apr 2013
Location: near Rojales
Posts: 265
Re: Failure to do Spanish tax return first year resident?
sorry to jump in, resident 1.12.17 tax return is due when???
Help please
Help please
Mar 2nd 2018, 7:53 pm
#8
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: Failure to do Spanish tax return first year resident?
By the end of June 2018
Mar 4th 2018, 10:37 am
#9
Forum Regular
Joined: Sep 2007
Location: Altiplano of Granada Province
Posts: 180
Re: Failure to do Spanish tax return first year resident?
Sorry to query (I always follow Fred James advice regarding tax etc as he is very knowledgeable). But is the date quoted as 1.12.17 January 12 2017 or 1st December 2017? When I worked, having worked with Americans and British, I know that dates can be confusing. If it is January then Fred's answer is correct but if December 2017 then surely the person would not have been resident long enough to do a return in 2018 but would have to in 2019? Perhaps the person could confirm which date they meant.
Mar 4th 2018, 10:44 am
#10
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: Failure to do Spanish tax return first year resident?
I did not read it that the date given was the date he became resident. I assumed he was just referring (in a strange way) to the 2017 income.
Mar 4th 2018, 3:20 pm
#11
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Joined: Aug 2005
Location: Beckenham, London borough Bromley
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Re: Failure to do Spanish tax return first year resident?
Hola
A friend of mine is selling his house here having lived in it permanently for the last 19 years. The solicitor has advised him to fill in a tax return for the past three years as it will save him money by being "Tax Resident".
Apparently the tax man just says "Thank you" for the money !!!
Davexf
A friend of mine is selling his house here having lived in it permanently for the last 19 years. The solicitor has advised him to fill in a tax return for the past three years as it will save him money by being "Tax Resident".
Apparently the tax man just says "Thank you" for the money !!!
Davexf
Mar 4th 2018, 4:35 pm
#12
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: Failure to do Spanish tax return first year resident?
Well, really he is more likely to say “ damn, if you hadn’t finally done a tax return, I would have got tons more money from CGT”
Of course, you can file tax returns for previous years but you will get a significant fine for late declarations.
The moral is, if you live in Spain, submit an annual declaration or face the consequences.
Of course, you can file tax returns for previous years but you will get a significant fine for late declarations.
The moral is, if you live in Spain, submit an annual declaration or face the consequences.
