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gemscot Aug 11th 2018 8:17 pm

do you need to file a tax return?
i have done some research and seen that a number of sites say the following:-

only need to file a tax return in Spain when you make more than €22,000 per year, receive a rental income of more than €1,000 and/or receive a capital gains and savings income of more than €1,600.

is this correct? - seems too easy as if you and your partner both took 22k per annum then pretty nice income with no spain tax liability

Fred James Aug 11th 2018 9:13 pm

Re: do you need to file a tax return?
The 22k rule only applies if that income has already had tax deducted by the employer. If you are not in this category, the limit is much lower, depending on the actual type of income it could be as low as 12k. If you are non Spanish you would be advised to make a tax declaration even if it does not result in any tax due. This will ensure that you are considered to be tax resident with all the advantages that may have, particularly with regard to CGT and IHT.

spainrico Aug 12th 2018 7:54 am

Re: do you need to file a tax return?
Yes, this is a popular misconception not helped by many Spanish gestorias who sometimes fail to understand an Expats tax position. As Fred says best to make a declaracion and be fiscally resident. The proof can also be needed at property transaction times as well.

Johncarzx Aug 12th 2018 8:06 am

Re: do you need to file a tax return?
I was told you must file an initial tax return when you first become resident even if it is clear there is no tax liability. Many never do. Perhaps some member can clarify this.

spainrico Aug 12th 2018 8:24 am

Re: do you need to file a tax return?

Yes I think this is true and is all part of the system to get into the Spanish and out of the UK system. I have friends who make an annual declaracion even though their tax liability is very very low. And with Brexit may be beneficial to be 100% by the (current) book. I have a code of NT (No tax) in the UK and declare everything here. Although for some this is not an option depends on income type and status etc.

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