Neptuno

I was reading about expats who haven't declared their pensions for Spanish taxes, having a six month amnesty from January 1st to file amended returns and settle their debt without facing fines or penalties, as long as returns for the last four years are paid before the deadline. The tax office said pensions have to be declared, no matter how much they are.
Apparently the tax office is being so lenient because the people concerned are "elderly and don't know about tax matters." Pathetic!
Well, they should have known, then.
When they planned to move to Spain , surely they didn't think they could carry on as if they were in the UK?
No one can give ignorance as an excuse- there are seminars for expats by financial advisers, there are advice columns in newspapers, there is a wealth of info online and in many forums, much more than there was years ago.
I think the tax office is being too lenient, and should have cracked down on these non declarers years ago with heavy fines.
Another thing I read in this article in today's Costa Blanca news, South edn, was that if you have a single Spanish pension of less than 22 k, you don't pay tax on it, but if you have a couple of pensions, you do!
How has this injustice been allowed to continue?
One Spanish political party is asking for all Spanish( that surely includes expat residents? ) pensioners to come under the same income tax rules.
I know there has been a lot of misinformation about this 22 k figure in ex pat press.
Some have been told by advisers who should know better,that they do not have to declare if their annual income is under 22k. They fail to tell them that this sum has to come from one source and has been already taxed, leaving the person with a false sense of security, as the tax threshold is much lower than this.
It is also not applicable to anyone who can take advantage of the double taxation treaty, in other words, all expat pensioners. It seems there could be a two tier system- Spanish and other nationalities.
Bearing in mind what I read in this article, there seems to be confusion about this 22k in relation to pensioners and workers alike!

spainrico

Yes I agree this 'You don't have to declare/pay tax on income under 22k' has been a long standing urban myth/misnomer and yes it is about time everybody (including non resident property owners) did a valid tax return in Spain. Perhaps it would help if they understood that being fiscally resident can also have tax advantages as well as being inside the law.

bobd22

Spainrico I an confused as to why you think non residents should submit an income tax return in Spain? Do you mean submit and pay their due non resident tax? Surely a non resident other than non resident tax has submitted their tax details in their country of residence! Maybe you mean those non residents who make income from rental? Could you clarify.

snikpoh

Isn't it as simple as - if you have property here, then you MUST make a tax return?

Neptuno

spainrico did not mention about non residents paying income tax, he meant ( I think) about everyone doing a valid tax return, whether resident or non resident
Am I right spainrico?

bobd22

I am confused as to why other than a. Non resident tax submission b. A non resident that rents out their Spanish property. Surely as a non resident then my income or whatever have nothing to do with Spanish tax authorities? Different of course if one is resident.

bobd22

No as not tax resident.

spainrico

Non resident Spanish property owners have Spanish tax liabilities whether they rent it out or not, yes it is a different process to residents, but I was not trying to explain the process just make the point they should pay their tax dues in Spain.

BTW for non residents who don't know your Spanish tax (Property Owners Imputed Tax) is due by December 31st.

bobd22

Yes thanks for clearing that up you are referring to non residents tax form 210, yes I agree all non residents should submit that.

I was just confused as the thread was referring to income from pensions. You will be pleased to know that my non residents tax is fully up to date, I usually sort it out early in the year rather than the 31 December deadline, then I know it is done and out of the way.

snikpoh

Imputed rental income tax return - form 210?

spainrico

Yes still the 210 I think, but never needed to use it.

bobd22

Yes the non resident/imputed rental tax is still submitted using the Modelo 210 Form, however it is now completed online using The Agencia Tributaria site then printed off for payment at the bank.

bobd22

Snikpoh sorry I read it that you were queerying the form used as I think Spainrico did. I fully understand the requirements of a non resident having to pay non resident / imputed rental tax as a non resident house owner in Spain and I have always complied with it and in fact via this forum tried to assist people that want to pay it themselves. Yes it is described as non resident income tax form. However the point I was trying to clarify was that other than income from renting out a property my UK income has nothing whatsoever to do with the Spanish authorities. I simply asked Spainrico if they could clarify the comment made, which they have done and although I do not personally agree with a non resident tax, I agree that it is the law and all non resident property owners should comply and pay. I asked for the clarification as the original post was re resident expats not declaring and paying tax in Spain on their pensions mainly I guess their state pension I.e. income from within the UK.

frigilianafreddy

Of course if you own two Properties (even if one is a garage or store room) there is a different deadline for imputed tax form 210

bobd22

I also believe in such a situation you need to have a financial representative to deal with it rather than submitting it yourself?