Hi all,
This is our first tax year in Spain as residents, whilst sorting out all the forms to set up in Spanish tax world last year, our (then) adviser told us that we had to do our Modelo 720 declaration (Worldwide assets) between Jan and March this year, theres no doubt that's when it would be due, BUT we have no assets / savings / private pensions or property of any description outside of Spain, as we moved out here lock, stock and barrel and are 'transparent' with what we have in Spanish accounts in any case.
Nothing to declare in that case.
Simple question, do we need to do a 'Nil return' for our first tax year or simply take no action as regards the Modelo 720? Be pleased to know other persons thoughts.
Thanks!

Surely if you have no assets outside of Spain then you do not need to submit a 720. From what I have read you do not submit a nil return. You either have assets in the designated categories over the limit required to declare or you don't . If you don't then no requirement to submit anything.

You only submit a 720 if your assets outside of Spain are in excess of 50k euros in any asset class Or, if there are any changes to a previously submitted 720.

Thank you for the prompt replies, that's all really helpful and makes perfect sense.
I can't say 'Yes. I thought so', because I was honestly unsure!

I began submitting an annual nil return some years ago as I believed Fiscal Residence provide some benefits in the event of selling a property here in Spain. Seem to remember the last time I spoke to my Gestor she said any benefits there may once have been are no longer valid. Next year when it's due agin, will check this out and if there are no benefits, I won't bother.
Anyone know if what I was told is true?

I think you may be confusing the annual income tax declaration with the asset declaration.

You never submit a nil return for the asset declaration, but frequently do so for income tax. Once you have submitted your first income tax return you are definitely officially tax resident and entitled to any benefits that may arise from that. So long as your income is below the official minimum for declaration, there is no further requirement to declare.

If your nil return is a result of having a UK government pension, the rules have just changed and you will be required to submit a tax declaration as any income that is connected with the double taxation treaty must be declared even if it results in a nil declaration.

Yes, I was confusing the two Fred, thanks for the correction. Still, when I did mention income tax declaration to my Gestor, she said there were no advantages to being Fiscal Resident any more. Whether she was confused also I have no idea. As I said in my post when time comes around this year I will clarify things with her.
Thanks again.

She is not confused - she does not know what she is talking about!

There are significant advantages to being tax resident, particularly with regard to Capital Gains Tax and Inheritance Tax.

Threads like this worry me as some people seem to be trusting completely unqualified advisers with important issues. Which raises the question who exactly can be trusted to give accurate professional advice?
Especially as anybody can download AEAT's 'PADRE' program and call themselves a 'tax expert'.
Thoughts anyone?

I can't see why downloading the PADRE program would make you a tax expert - you still need to know which boxes to fill in.

Reading the 700 page tax manual that comes with it could be a step in the right direction.

Hi Fred, there is an article in this week's RTN which states that there are now no differences as regards liability for inheritance tax between tax and non-tax residents.
Of course I can't know the validity without so-called professional advice!

That's not entirely true.

Some regions give extra allowances based on long term residency in their region, some do not and only the basic state rules apply. The EU have declared that this is discrimination and that Spain must make these allowances available to both residents and non residents. Although the law has not yet (to my knowledge) been changed, many lawyers are encouraging people who have paid IHT in the last 4 years to reclaim some of the tax - that may be what you saw in RTN - there are loads of opportunist law firms jumping on the bandwagon!

What they fail to point out is that one of the major allowances against IHT involves the "habitual residence" of the deceased. This can be left to the surviving spouse or descendants with a 95% allowance exempt from tax so long as the property is retained for 10 years. This applies across Spain rather than just in some regions. This allowance is not available to non residents, because, by definition, their property cannot in any way be classed as their habitual residence.

You refer to residents and non-residents. Fiscal residency is in a different category surely?

No, the only residency that has any legal significance is fiscal residency.

If you are not declaring your taxes in Spain you are not a resident as far as the taxman is concerned.

Form 210 Notional rental income

I know this is probably the wrong place but I did not wish to start a new thread.
The tax I pay on my house in Oliva, that I do not rent out, has tripled in a year from c.euro50 to c.euro150e.
Has anyone else experienced such a large % increase and if so why?

Thanks