Completing A Spanish Tax Return
Jun 7th 2014 | 8:27 am
#16
Joined: Jun 2006
Posts: 11,231
From: Granada Costa
Re: Completing A Spanish Tax Return
That gives you a receipted copy in case of any problems in future. You can do the submission online but that will require digital certificates and password so best avoided.
You can run as many options as you like on the program until you are happy with it.
Obviously everything is in Spanish but if you have a copy of your last return it should be obvious what you need to fill in.
Jun 8th 2014 | 5:20 am
#17
BE Enthusiast
Joined: Jun 2013
Posts: 990
Re: Completing A Spanish Tax Return
I think the average ex pat would find doing their own return intimidating.
It cannot be as simple as people make out.
I found that there was a huge difference between accountants in the amount of tax to be paid, one made it over 2 k the other, 500 euros- how can that be? If the experts can't get it right, I wouldn't want to do it.
Apparently some pensions are treated differently in Spain, so obviously some don't know this. I use an accountant now , who has had many years of experience and knows both UK and Spanish tax systems.
It cannot be as simple as people make out.
I found that there was a huge difference between accountants in the amount of tax to be paid, one made it over 2 k the other, 500 euros- how can that be? If the experts can't get it right, I wouldn't want to do it.
Apparently some pensions are treated differently in Spain, so obviously some don't know this. I use an accountant now , who has had many years of experience and knows both UK and Spanish tax systems.
Jun 8th 2014 | 7:49 am
#18
Joined: Jun 2006
Posts: 11,231
From: Granada Costa
Re: Completing A Spanish Tax Return
Yes, there are some gestors who do not understand what an annuity pension is, even though they are very common in Spain. In most cases you only have to declare about 25% of the income.
If they put in the full value of the annuity then it will make a huge difference to the tax due.
To be fair, if you tell them what income you have from a pension without pointing out that is an annuity, they will treat it as normal income.
Believe me, once you understand which box to put it in, it is very easy to do and you are far less likely to get it wrong!.
If they put in the full value of the annuity then it will make a huge difference to the tax due.
To be fair, if you tell them what income you have from a pension without pointing out that is an annuity, they will treat it as normal income.
Believe me, once you understand which box to put it in, it is very easy to do and you are far less likely to get it wrong!.
Jun 14th 2014 | 2:04 am
#19
Just Joined
Joined: May 2014
Posts: 4
Re: Completing A Spanish Tax Return
Thanks guys. Will check out the PADRE over the next few months and when we come to complete the tax return for real, if we are struggling we can always find a recommended accountant
Aug 23rd 2014 | 1:33 am
#20
Just Joined
Joined: May 2011
Posts: 4
Re: Completing A Spanish Tax Return
Hello
I need some help please from you clever people: I received a tax free lump sum from my annuity in May 2014 whilst still in UK,arrived in Spain 7th August 2014 and will apply for N.I.E(Número de Identificación de Extranjero) before 4th November 2014[ 90 days ]am i correct in assuming that as i will only be in Spain for 147 days for this Spanish tax year,i would not become tax resident until January 1st 2015 and would be due to submit my 1st tax return between May and June 2016,and my tax free lump sum would not need to be declared at all?
Regards
I need some help please from you clever people: I received a tax free lump sum from my annuity in May 2014 whilst still in UK,arrived in Spain 7th August 2014 and will apply for N.I.E(Número de Identificación de Extranjero) before 4th November 2014[ 90 days ]am i correct in assuming that as i will only be in Spain for 147 days for this Spanish tax year,i would not become tax resident until January 1st 2015 and would be due to submit my 1st tax return between May and June 2016,and my tax free lump sum would not need to be declared at all?
Regards
Aug 23rd 2014 | 1:37 am
#21
Moderator
Joined: Mar 2007
Posts: 15,150
From: Costa Valencia
Re: Completing A Spanish Tax Return
Hello
I need some help please from you clever people: I received a tax free lump sum from my annuity in May 2014 whilst still in UK,arrived in Spain 7th August 2014 and will apply for N.I.E(Número de Identificación de Extranjero) before 4th November 2014[ 90 days ]am i correct in assuming that as i will only be in Spain for 147 days for this Spanish tax year,i would not become tax resident until January 1st 2015 and would be due to submit my 1st tax return between May and June 2016,and my tax free lump sum would not need to be declared at all?
Regards
I need some help please from you clever people: I received a tax free lump sum from my annuity in May 2014 whilst still in UK,arrived in Spain 7th August 2014 and will apply for N.I.E(Número de Identificación de Extranjero) before 4th November 2014[ 90 days ]am i correct in assuming that as i will only be in Spain for 147 days for this Spanish tax year,i would not become tax resident until January 1st 2015 and would be due to submit my 1st tax return between May and June 2016,and my tax free lump sum would not need to be declared at all?
Regards
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Rosemary
Aug 23rd 2014 | 2:54 am
#22
Joined: Jun 2006
Posts: 11,231
From: Granada Costa
Re: Completing A Spanish Tax Return
am i correct in assuming that as i will only be in Spain for 147 days for this Spanish tax year,i would not become tax resident until January 1st 2015 and would be due to submit my 1st tax return between May and June 2016,and my tax free lump sum would not need to be declared at all?
Regards
Regards
Aug 23rd 2014 | 3:55 am
#23
Retired and loving it!
Joined: Sep 2007
Posts: 5,212
From: Ontinyent - Valencia region (campo)
Re: Completing A Spanish Tax Return
Hello
I need some help please from you clever people: I received a tax free lump sum from my annuity in May 2014 whilst still in UK,arrived in Spain 7th August 2014 and will apply for N.I.E(Número de Identificación de Extranjero) before 4th November 2014[ 90 days ]am i correct in assuming that as i will only be in Spain for 147 days for this Spanish tax year,i would not become tax resident until January 1st 2015 and would be due to submit my 1st tax return between May and June 2016,and my tax free lump sum would not need to be declared at all?
Regards
I need some help please from you clever people: I received a tax free lump sum from my annuity in May 2014 whilst still in UK,arrived in Spain 7th August 2014 and will apply for N.I.E(Número de Identificación de Extranjero) before 4th November 2014[ 90 days ]am i correct in assuming that as i will only be in Spain for 147 days for this Spanish tax year,i would not become tax resident until January 1st 2015 and would be due to submit my 1st tax return between May and June 2016,and my tax free lump sum would not need to be declared at all?
Regards
Also, you mention NIE, but you will also have to sign on the foreigners register (residencia) within 90 days as well.
Aug 23rd 2014 | 5:24 am
#24
Just Joined
Joined: May 2011
Posts: 4
Re: Completing A Spanish Tax Return
Thanks for your feedback.
My total assets do not amount to more than €50,000 in any of the categories,so i will not need to submit form 720,it will probably be easier if i applied for residence first as the new certificate also contains the N.I.E?
Regards
My total assets do not amount to more than €50,000 in any of the categories,so i will not need to submit form 720,it will probably be easier if i applied for residence first as the new certificate also contains the N.I.E?
Regards
Aug 25th 2014 | 8:05 pm
#25
BE Enthusiast
Joined: Aug 2009
Posts: 553
From: now just seville ( province)
Re: Completing A Spanish Tax Return
Sorry we have been away for so long, no excuses but I need some help now from the experts on here; boot lick, boot lick, boot lick!
I have searched and better searched for an example of how to work out a Spanish Tax Return but, alas, with no luck.
This is how I think it goes, purely an example but with correct rates etc.
UK State Pension 7,500.00
Net UK Rental Income 4,000.00
Total Income 11,500.00
Earned Income Allowance (4,080-812) 3,268.00
Less 35% sliding scale reduction
Taxable Income 8,232.00
Tax Due @ 24.75% 2,037.42
Personal Tax Allowance (5,151 @ 24.75%) 1,274.87
Total Income Tax to Pay 762.55
Rental Income Tax Paid In UK 800.00
Balance -37.45
Interest on Savings Including ISA's 2,000.00
Tax Due @ 21% 420.00
Tax Paid (Deducted by banks in UK and Spain 24.00
Tax To Pay 396.00
Can anyone please confirm or not that the methodoligy is correct please?
Steve
I have searched and better searched for an example of how to work out a Spanish Tax Return but, alas, with no luck.
This is how I think it goes, purely an example but with correct rates etc.
UK State Pension 7,500.00
Net UK Rental Income 4,000.00
Total Income 11,500.00
Earned Income Allowance (4,080-812) 3,268.00
Less 35% sliding scale reduction
Taxable Income 8,232.00
Tax Due @ 24.75% 2,037.42
Personal Tax Allowance (5,151 @ 24.75%) 1,274.87
Total Income Tax to Pay 762.55
Rental Income Tax Paid In UK 800.00
Balance -37.45
Interest on Savings Including ISA's 2,000.00
Tax Due @ 21% 420.00
Tax Paid (Deducted by banks in UK and Spain 24.00
Tax To Pay 396.00
Can anyone please confirm or not that the methodoligy is correct please?
Steve
Aug 25th 2014 | 8:59 pm
#26
Lost in BE Cyberspace
Joined: Feb 2008
Posts: 6,173
Re: Completing A Spanish Tax Return
As far as I understand it re ISA, you can continue to hold any held prior to becoming non UK resident but once non UK resident can't take new ones out. As it is income and the Spanish don't have such a thing or similar tax free saving, then any interest earned whilst Spanish resident must be declared as it is worldwide income.
Aug 25th 2014 | 10:58 pm
#27
BE Enthusiast
Joined: Jun 2013
Posts: 990
Re: Completing A Spanish Tax Return
How does someone receive a UK state pension of £ 7,5000?
Aug 25th 2014 | 11:48 pm
#28
Joined: Jun 2006
Posts: 11,231
From: Granada Costa
Re: Completing A Spanish Tax Return
They don't. Try reading the post again.
Aug 25th 2014 | 11:52 pm
#29
BE Enthusiast
Joined: Jun 2013
Posts: 990
Re: Completing A Spanish Tax Return
I know the poster says it' s an example, but why not put the correct yearly sum for a state pension, instead of one that's about£1000 more?
Aug 25th 2014 | 11:59 pm
#30
Joined: Jun 2006
Posts: 11,231
From: Granada Costa
Re: Completing A Spanish Tax Return
Most people get more than the basic UK state pension, taking into account all the other historic benefits that are included.
€7500 is a perfectly good example.
€7500 is a perfectly good example.
