Re: 183 day rule accountant help needed!
 

Hey guys I have a question which I cant find an answer to anywhere. I have spoken to 5 different accountants none of who seem to understand what I am saying. Its so frustrating I feel like I know more about the Spanish tax regulation than they do!

My situation is this. I moved to Spain from the UK 2 months ago as a result of a job offer for a Spanish firm (permanent contract). My intentions were never to stay here for more than 5 months (and thus avoid becoming a tax resident..). However soon after starting work I realised that there is a clause which says that if Spain becomes your centre of financial interests then you may be regarded as a tax resident sooner than the 183 day period! Does anyone have experience with this clause? What exactly does this mean? Surely if you work here for one week they cant say its your center of financial interests... Do they mean if you work here longer than you have worked abroad? Becoming a tax resident in Spain will likely cost me several thousand ££, so if there is something I can do (even resigning from my post before a certain period for example-ive been there just under 2 months) then I would like to know about it. I have even looked into the Beckham tax laws but the main issue is that my earnings outside spain will likely be more than the 15% of my total annual income allowable- part of the reason I want to avoid becoming a tax resident here.

If no one has any idea could someone at least point me in the direction of a reputable tax advisor? Ideally someone who speaks good English and has had a lot of experience with Expats from the UK. Everyone who I have spoken to so far have been pretty uninformative. International firms, Spanish firms, and even expat specialist firms, have all had the initial reaction. Oh you havent been here for 183 days so you are fine. As soon as I point out the clause they say hmm maybe you are right, you should speak to a specialist in the area... (I thought they were meant to be the specialists! if they cant help me who can?! :).

Please help, I am going out of my mind hah!

Re: 183 day rule accountant help needed!
 

As Concierge for the Spanish section of BE I would like to say hello and welcome.

BE is a very large expat website, so if you have problems finding your way around we have concierges who will try to direct you. The moderators for the Spanish forums are Mitzyboy and Fred James, moderators are there to ensure that the site runs smoothly within the rules of BE. Problems and complaints should always be addressed to a moderador who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are friendly and helpful with a wealth of knowledge of the issues of living in Spain. At the top of the page you will find a quirkily named thread called Free Beer which is full of important and useful information. Hope you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

Re: 183 day rule accountant help needed!
 

CGT on my house rather concerns me too. I was planning to move in Aug/Sep to long term let with view to buy. I will become tax resident. I was going to rent my UK house then sell when I buy in Spain but now not so sure because of CGT.

As I understand it the exemptions you get are only a percentage based on how much you reinvest. I was planning to keep back 160k (40%) so i get 60% exemption on gain (120k) so 120k x 60% x 27% = 19+k! Is that correct?

If so I think I will try and sell before become tax resident.

Re: 183 day rule accountant help needed!
 

The best bet is to sell before you become tax resident in Spain.

You are correct that the reinvestment relief also apples when you move from the UK to Spain. The rules are that the house you sell must have been your habitual home for three years prior to sale and that you reinvest the money within two years.

Yes, if you only invest part of the proceeds, you will pay CGT on the balance.

Incidentally, I understand that this works in reverse in that if you sell your house in Spain and return to the UK you can claim the same allowances against any Spanish CGT due on the sale of your Spanish house while you were tax resident in Spain.

Re: 183 day rule accountant help needed!
 

I have read this thread with great interest and have a question regarding this :

Can someone please explain why the person involved wouldn't become tax resident in January 2014 (ie 183 days after arriving) - what am I missing?

Re: 183 day rule accountant help needed!
 

They would.

Tax residency is based on a calendar year. So, if you come to Spain at the beginning of July 2013 you will not have spent 183 days here before the end of 2013 therefore you are not tax resident for 2013.

You continue to stay in Spain during 2014 and exceed the 183 days at the end of June 2014 which makes you tax resident from the 1st of January 2014.

Re: 183 day rule accountant help needed!
 

Got it now - thank you Fred :thumbsup:

Re: 183 day rule accountant help needed!
 

Anyone? :)

Re: 183 day rule accountant help needed!
 

What receipts would be accepted as proof of absence? If non-resident goes from own home in Spain to own home in Luxembourg through France by car they may have only some gas tank or lunch receipts from France (which could belong to anybody). No border control (Schengen area), no hotels needed, certainly no plane tickets. Just checked how it works - can be done in 1 day, especially if there are 2 drivers. Maybe somebody knows what Germans do in this situation?