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Failure to do Spanish tax return first year resident?

Failure to do Spanish tax return first year resident?

Old Mar 2nd 2018, 6:33 pm
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Default 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.
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Old Mar 2nd 2018, 6:46 pm
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Default 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.
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Old Mar 2nd 2018, 6:50 pm
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Default 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.
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Old Mar 2nd 2018, 7:27 pm
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Default 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!
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Old Mar 2nd 2018, 7:38 pm
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Default 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.
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Old Mar 2nd 2018, 7:39 pm
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Default Re: Failure to do Spanish tax return first year resident?

Originally Posted by Travelling writer View Post
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.
Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst myself and BEVS moderate Europe. Please read the Site Rules Site Rules | British Expatriate Community adhere to them so that the site runs smoothly. Moderators are there to ensure that the rules of BE are maintained. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

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Old Mar 2nd 2018, 7:40 pm
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Default 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
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Old Mar 2nd 2018, 7:53 pm
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Default Re: Failure to do Spanish tax return first year resident?

By the end of June 2018
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Old Mar 4th 2018, 10:37 am
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Default 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.
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Old Mar 4th 2018, 10:44 am
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Default 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.
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Old Mar 4th 2018, 3:20 pm
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Default 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 !!!

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Old Mar 4th 2018, 4:35 pm
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Default 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.
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