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-   -   residency subject again - sorry!! (https://britishexpats.com/forum/spain-75/residency-subject-again-sorry-708958/)

linda Coyle Mar 11th 2011 9:02 am

residency subject again - sorry!!
 
My hubby works abroad and is home (Spain) approx 3 months a year. He is paid from the UK into a UK bank (pays UK tax on his pay) and has a UK address for the bank. I am here permanent,signed on padron and have residency. I am not working so not liable for tax here, but where does my hubby stand? He is home in April for 3 weeks, does he need to do anything about tax here? He is not resident as he is hardly ever here, I will do a tax return but won't have to pay anything but advice on what he should be doing would be appreciated. Another question - what is the difference for me between residency or fiscal residency. thanks in advance for any advice

EsuriJohn Mar 11th 2011 9:26 am

Re: residency subject again - sorry!!
 

Originally Posted by linda Coyle (Post 9233691)
My hubby works abroad and is home (Spain) approx 3 months a year. He is paid from the UK into a UK bank (pays UK tax on his pay) and has a UK address for the bank. I am here permanent,signed on padron and have residency. I am not working so not liable for tax here, but where does my hubby stand? He is home in April for 3 weeks, does he need to do anything about tax here? He is not resident as he is hardly ever here, I will do a tax return but won't have to pay anything but advice on what he should be doing would be appreciated. Another question - what is the difference for me between residency or fiscal residency. thanks in advance for any advice

The difference is about 93 days. You must apply for Residencia after 3 months in Spain. If you are in Spain for 183 days (not necessarialy conscutive) in any tax year (Jan to Dec) you become a fiscal resident and subject to tax on your worldwide income.

From what you say your husband is not a Resident nor Fiscal Resident. He is properly paid and taxed in UK. If you fullfill the 183 day test you are a fiscal resident in Spain and should submit a tax return, You also need to get a green sheet Residencia and sign on the Padron.

linda Coyle Mar 11th 2011 5:29 pm

Re: residency subject again - sorry!!
 
Thanks for that, my hubby is not in Spain for more than 183 days in one year - does this mean he doesn't have to do anything about tax here? I have the residency "certificate" and will be doing a tax return this year - does this then make me fiscal resident or is there more forms to fill in to go from resident to fiscal resident?

EsuriJohn Mar 11th 2011 8:40 pm

Re: residency subject again - sorry!!
 

Originally Posted by linda Coyle (Post 9234235)
Thanks for that, my hubby is not in Spain for more than 183 days in one year - does this mean he doesn't have to do anything about tax here? I have the residency "certificate" and will be doing a tax return this year - does this then make me fiscal resident or is there more forms to fill in to go from resident to fiscal resident?

What you both need to do is to fill in a Modelo 030 each, you tick the Resident box and Hubby ticks the non-Resident box. The forms are available from the nearest office of the Agency Tributeria (Hacienda Spanish HMRC). If you and Hubby own a Spanish property jointly this will help a lot in the future but hubby will be subject non-Resident tax.

If you complete the Residents Tax return later in the year in June that puts you both on a level footing and makes things easier down the line such as Capital Gains tax and Inheritance tax.

Fred James Mar 11th 2011 9:37 pm

Re: residency subject again - sorry!!
 
The residency issue may not be as simple as that.

Your post implies that your husband does not work in the UK but gets tax deducted in the UK on his income which is deemed to be arising in the UK.

This does not necessarily make him tax resident in the UK.

Even though he does not spend 183 days in Spain, the fact that you have your family home in Spain could class him as a Spanish tax resident.

A lot depends on the individual circumstances but any tax paid in the UK could be offset against any tax due in Spain.

EsuriJohn Mar 11th 2011 9:57 pm

Re: residency subject again - sorry!!
 

Originally Posted by Fred James (Post 9234478)
The residency issue may not be as simple as that.

Your post implies that your husband does not work in the UK but gets tax deducted in the UK on his income which is deemed to be arising in the UK.

This does not necessarily make him tax resident in the UK.

Even though he does not spend 183 days in Spain, the fact that you have your family home in Spain could class him as a Spanish tax resident.

A lot depends on the individual circumstances but any tax paid in the UK could be offset against any tax due in Spain.

I assumed, wrongly perhaps, that he might be a North Sea Rig worker in the British area.

Fred James Mar 11th 2011 10:29 pm

Re: residency subject again - sorry!!
 

Originally Posted by John & Kath (Post 9234496)
I assumed, wrongly perhaps, that he might be a North Sea Rig worker in the British area.

Exactly - it can get very complicated!

betris Mar 12th 2011 2:43 am

Re: residency subject again - sorry!!
 
hang on.if he is working paying tax in uk.never here .then what are you all babling on about.

linda Coyle Mar 12th 2011 3:24 am

Re: residency subject again - sorry!!
 
he is actually in Australia, there for 16 weeks and here for 3 weeks, his company is UK based therefore paid as if in UK, totally confusing, but wanted the info as he is home in 3 weeks for 3 weeks and we would need to sort it, probably just go to local solicitor for advice,
thanks for all your replies

betris Mar 12th 2011 4:18 am

Re: residency subject again - sorry!!
 

Originally Posted by linda Coyle (Post 9234942)
he is actually in Australia, there for 16 weeks and here for 3 weeks, his company is UK based therefore paid as if in UK, totally confusing, but wanted the info as he is home in 3 weeks for 3 weeks and we would need to sort it, probably just go to local solicitor for advice,
thanks for all your replies

its not confusing at all.if you want any tax adivse.ask in the uk.here you may probely be strung along just to get some dosh of you

Fred James Mar 12th 2011 7:40 am

Re: residency subject again - sorry!!
 

Originally Posted by betris (Post 9234889)
hang on.if he is working paying tax in uk.never here .then what are you all babling on about.

Read what I said - the law says that if your wife is tax resident in Spain and the "family" home is there, then you can also be considered tax resident in Spain.

The law is set up that way to stop people claiming to never be resident in one country long enough to pay tax anywhere.

EsuriJohn Mar 12th 2011 8:01 am

Re: residency subject again - sorry!!
 

Originally Posted by linda Coyle (Post 9234942)
he is actually in Australia, there for 16 weeks and here for 3 weeks, his company is UK based therefore paid as if in UK, totally confusing, but wanted the info as he is home in 3 weeks for 3 weeks and we would need to sort it, probably just go to local solicitor for advice,
thanks for all your replies

I and many other have found Abrogado's the Spanish solicitors to be generally not very good and only interested in taking your money be careful very careful. I use a Gestoria who costs much less and does a really good job. You might need an Assesoria Fiscal.

betris Mar 13th 2011 1:20 am

Re: residency subject again - sorry!!
 

Originally Posted by Fred James (Post 9235272)
Read what I said - the law says that if your wife is tax resident in Spain and the "family" home is there, then you can also be considered tax resident in Spain.

The law is set up that way to stop people claiming to never be resident in one country long enough to pay tax anywhere.

yes fred the law is the law.but why would any body paying tax in uk and not living in spain open a can of worms and complicate things by going to the people who dont know there arse from there elbow and usualy make up rules as they go along just to relive you of your hard erned cash.

Fred James Mar 13th 2011 1:22 am

Re: residency subject again - sorry!!
 

Originally Posted by betris (Post 9236738)
yes fred the law is the law.but why would any body paying tax in uk and not living in spain open a can of worms and complicate things by going to the people who dont know there arse from there elbow and usualy make up rules as they go along just to relive you of your hard erned cash.

Yes, I would agree about not opening a can of worms - but that is down to the individual to decide.

The OP specifically asked what the tax situation was - hopefully she is now the wiser and can make her own decisions as what to do.

betris Mar 13th 2011 1:29 am

Re: residency subject again - sorry!!
 

Originally Posted by Fred James (Post 9236743)
Yes, I would agree about not opening a can of worms - but that is down to the individual to decide.

The OP specifically asked what the tax situation was - hopefully she is now the wiser and can make her own decisions as what to do.

fred I agree with you.


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