Questions about Modelo 720 and tax residency
Jan 13th 2018, 2:50 pm
#31
Forum Regular
Joined: Feb 2015
Location: Madrid
Posts: 155
Re: Questions about Modelo 720 and tax residency
Yes, as far as I know I haven't been paying the normal income tax rate of ~20% or thereabouts. It has been more like 2% from what I can see.
I'm just a bit of a catastrophiser and am easily swayed by the stuff I've read online about the penalties, even if it is scaremongering!
The 183 day rule seems to take precedent in most of the articles I've seen, but there's still this point of having 'economic interest or activity' in Spain which I don't quite understand.
I'm just a bit of a catastrophiser and am easily swayed by the stuff I've read online about the penalties, even if it is scaremongering!
The 183 day rule seems to take precedent in most of the articles I've seen, but there's still this point of having 'economic interest or activity' in Spain which I don't quite understand.
You're being a real worryguts. Gestores have told you not to worry! have you spoken to the boss of your school? He will have a gestor.
It all really depends on how long you're planning on staying in Spain but if you stay for a full tax year ( 2018 ) and then continue, you should do the 720
Another thing that occurs to me is the situation of your property in England. The Spanish taxman will expect that you are letting it out and will want his cut. You won't have to pay this until your 2019 tax return.
Also, if you are letting, HMRC will expect you to do a UK tax return. I'm no professional, just speaking from personal experience and that of people I know.
Jan 13th 2018, 3:05 pm
#32
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Thread Starter
Joined: Jan 2018
Posts: 12
Re: Questions about Modelo 720 and tax residency
You're being a real worryguts. Gestores have told you not to worry! have you spoken to the boss of your school? He will have a gestor.
It all really depends on how long you're planning on staying in Spain but if you stay for a full tax year ( 2018 ) and then continue, you should do the 720
Another thing that occurs to me is the situation of your property in England. The Spanish taxman will expect that you are letting it out and will want his cut. You won't have to pay this until your 2019 tax return.
Also, if you are letting, HMRC will expect you to do a UK tax return. I'm no professional, just speaking from personal experience and that of people I know.
It all really depends on how long you're planning on staying in Spain but if you stay for a full tax year ( 2018 ) and then continue, you should do the 720
Another thing that occurs to me is the situation of your property in England. The Spanish taxman will expect that you are letting it out and will want his cut. You won't have to pay this until your 2019 tax return.
Also, if you are letting, HMRC will expect you to do a UK tax return. I'm no professional, just speaking from personal experience and that of people I know.
My boss' gestor is one of the ones I mentioned who'd told me I didn't need to do it. The thing is, if the Hacienda do chase me down for not doing it, I can't imagine the word of a gestor would stand against them?
Also it's an ISA rather than property so that situation wouldn't arise, although I think they would plan on taxing the interest I make on it next year.
As far as things currently stand, I plan on moving back to the UK after the summer (just plan on living here for a year) so I can't imagine I'll need to deal with any of this next year.
Jan 13th 2018, 3:35 pm
#33
Forum Regular
Joined: Feb 2015
Location: Madrid
Posts: 155
Re: Questions about Modelo 720 and tax residency
I know, and I hate it! I wouldn't worry so much were the fines not so ridiculously big. There's also the fact that I haven't had to do declarations or taxes myself before (I've only ever used PAYE in the UK). I've never been a high roller, just ended up with a windfall which now seems to be biting me in the arse.
My boss' gestor is one of the ones I mentioned who'd told me I didn't need to do it. The thing is, if the Hacienda do chase me down for not doing it, I can't imagine the word of a gestor would stand against them?
Also it's an ISA rather than property so that situation wouldn't arise, although I think they would plan on taxing the interest I make on it next year.
As far as things currently stand, I plan on moving back to the UK after the summer (just plan on living here for a year) so I can't imagine I'll need to deal with any of this next year.
My boss' gestor is one of the ones I mentioned who'd told me I didn't need to do it. The thing is, if the Hacienda do chase me down for not doing it, I can't imagine the word of a gestor would stand against them?
Also it's an ISA rather than property so that situation wouldn't arise, although I think they would plan on taxing the interest I make on it next year.
As far as things currently stand, I plan on moving back to the UK after the summer (just plan on living here for a year) so I can't imagine I'll need to deal with any of this next year.
In that case you have absolutely nothing to worry about
Just enjoy your time here and concentrate on your teaching.
Jan 13th 2018, 4:45 pm
#34
Just Joined
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Joined: Jan 2018
Posts: 12
Re: Questions about Modelo 720 and tax residency
Thank you. I'll try. I just keep seeing stuff online saying I do need to do it and can't settle my mind about it! Apologies for being such a pain.
Last edited by Maxwellhouseeyes; Jan 13th 2018 at 4:53 pm.
Jan 13th 2018, 5:26 pm
#35
Joined: Jun 2006
Location: Granada Costa
Posts: 10,901
Re: Questions about Modelo 720 and tax residency
If you are employed on a short term basis and pay tax in Spain while tax resident in the UK you will also be liable for tax on the Spanish income in the UK, but normally you can claim one against the other.
