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Questions about Modelo 720 and tax residency

Questions about Modelo 720 and tax residency

Old Jan 13th 2018, 2:50 pm
  #31  
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Default Re: Questions about Modelo 720 and tax residency

Originally Posted by Maxwellhouseeyes View Post
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.

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.
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Old Jan 13th 2018, 3:05 pm
  #32  
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Default Re: Questions about Modelo 720 and tax residency

Originally Posted by Mustard View Post
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.
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.
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Old Jan 13th 2018, 3:35 pm
  #33  
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Default Re: Questions about Modelo 720 and tax residency

Originally Posted by Maxwellhouseeyes View Post
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.

In that case you have absolutely nothing to worry about

Just enjoy your time here and concentrate on your teaching.
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Old Jan 13th 2018, 4:45 pm
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Default Re: Questions about Modelo 720 and tax residency

Originally Posted by Mustard View Post
In that case you have absolutely nothing to worry about

Just enjoy your time here and concentrate on your teaching.
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.
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Old Jan 13th 2018, 5:26 pm
  #35  
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Default Re: Questions about Modelo 720 and tax residency

Originally Posted by snikpoh View Post
Why wasn't he a tax resident when he was paying tax - I truly don't understand that logic.
Simple. In most countries, UK included, all income arising in that country is taxed in that country, irrespective of your tax residency. Take for example rental income from a house in the UK when the owner is resident in Spain.

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.
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