Questions about Modelo 720 and tax residency
 

Hi guys,

I moved to Spain in August last year and have a contract as an English teacher until this summer.

My asset circumstances in the UK mean that I have to fill out Modelo 720, but I understand this is only if I'm tax resident here.

I read online that you have to be in Spain for over 183 days of the calendar year to be tax resident (which I haven't), but as I have a job and the little green NIE card and everything I wondered if this makes me tax resident, and thus requires me to submit Modelo 720.

I'm panicking like mad as the penalties for non submission are huge, and I have no idea what to do from here on.

If anyone can shed any light on this, and/or where I can go to get help, please let me know.

Re: Questions about Modelo 720 and tax residency
 

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.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

Re: Questions about Modelo 720 and tax residency
 

You are tax resident after 183 days so presumably in 2017 you were not but maybe in 2018 depending on how many months you plan to be here.

Re: Questions about Modelo 720 and tax residency
 

While on the subject of the 720. My understanding is if I am say over the 50,000 euro declaration limit on property I declare the value of my property but don't need to declare under other sections savings, bonds etc if in those categories they are under the 50,000 euro limit? So say 30,000 euros savings and 25000 euros in bonds no need to declare them. It is just that I was talking to someone who has submitted their 720 with savings of under 50,000 euros but said they had to provide full information of all their savings,accounts etc in UK and Spain irrespective of amount held ? Personally I would rather only disclose what I lawfully need to declare. Could anyone confirm if my understanding is correct?

Re: Questions about Modelo 720 and tax residency
 

True, and I don't know if I'll be here for 183 days this year anyway. But, I keep seeing the phrase 'centre of economic interests' coming up online as a reason for being a tax resident here, but can't find a definition for this. Does this include just being employed in Spain, or is it just if you own a business or something?

Re: Questions about Modelo 720 and tax residency
 

You are correct. Only assets of over 50k need to be declared. Be aware that it is 50k in each category, not the individual asset. For example, your savings and bonds, depending on what they actually are, might fall into the same category and might need to be declared. Also, if assets are in joint names, you have to declare the whole amount, not just your share of it.

Re: Questions about Modelo 720 and tax residency
 

Cheers Fred I understand all the points you make. Struck me as odd what they said. Could you confirm (I understand winnings are not tax free in spain) are UK premium Bonds in the bonds category or Savings?

Re: Questions about Modelo 720 and tax residency
 

@Loafing Along -


Surely the 183 day 'rule' is irrelevant if you are already earning and paying tax.

That is, as soon as you pay tax, you are tax resident

Re: Questions about Modelo 720 and tax residency
 

On this subject, I have my savings in a few different accounts with two different banks, and one of the accounts is shared. Is there scope to include all these details in the modelo, or is it just the overall sum of all of them which I need to put in?

Yeah that's what I thought, but I can't find anything online which clearly says it so I wanted clarification.

Re: Questions about Modelo 720 and tax residency
 

Yes I agree with your comment but was not sure if or where he is earning.

Re: Questions about Modelo 720 and tax residency
 

Yeah I have a job. So this means I'm definitely in the resident category I suppose. Ahh I was hoping I wouldn't need to do the modelo. I've never done a tax return or declaration in my life, I'm absolutely terrified.

Re: Questions about Modelo 720 and tax residency
 

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Find a gestoria and they will do it for you for a fee. Once the first one is done you can then use it as a model for the next year's , in case you are still here.

Re: Questions about Modelo 720 and tax residency
 

What's a gestoria?

Also, do you know what would happen if:
a) I left Spain before 31/03/18 - would I still need to do the modelo?
b) if I stay longer but return to the UK in, say, September, would I need to do a Modelo next year from the UK as I would have been in Spain the majority of this year?

Sorry for all the questions and thank you for your patient responses.

Re: Questions about Modelo 720 and tax residency
 

I don’t know, but as they are issued as saving bonds with no interest but a chance of winning, I would expect them to be classed as savings.

Re: Questions about Modelo 720 and tax residency
 

Surely they would be treated in the same way as the Lottery in Spain ?