Brano77

Tax resident in Spain, two sources of income, UK occupational pension (not Gov) and rental income form UK house. Rental income is declared in UK and Spain. Occupational pension is declared only in Spain, paid NT having completed FD9 and submitted this to HMRC several years ago. HMRC therefore know I am resident in Spain for tax purposes.

I will soon receive a UK OAP which I understand is always paid gross. However, if it were to be included in my UK tax return it would push my UK income (rental + OAP) above my UK tax free allowance. Can I just add the OAP to my Spanish tax return and ignore it for my UK return or do I need to take some action with HMRC even though they know I am tax resident in Spain?

Fred James

Submit another FD9 for the State pension, then it won't affect the tax on your rental income.

Alternatively, ask HMRC at their international centre if it will be exempt as you have already done the FD9.

Brano77

Thanks Fred, I will do that.

As a matter of interest is there a Certificate of Tax Residency that can be obtained from the Hacienda that will serve the same purpose as an FD9 if sent to HMRC?

Fred James

I believe there is.

In the past the FD9 procedure has not been accepted by AEAT and HMRC would ask for a certificate, but I think it is OK now. The attraction of the FD9 procedure from the point of view of HMRC is that you have to ask them to pay the income gross but before they will do that the form has to go through AEAT so that they are then aware of the income. This means that HMRC are sure that you are actually declaring the income in Spain rather than just asking for it to be paid gross.

As HMRC once said to me, "before we let you off our hook, we want to be sure that you are on someone else's hook".

As I said before, talk to HMRC. I have always found them to be very helpful.

Brano77

Thanks Fred

Brano77

I spoke to HMRC and attach a link to the requisite form. They were very helpful and explained that it is important to use the attached form even for a state pension. The form looks similar to the old FD9

As explained on the form it is necessary to obtain a certificate “Residencia Fiscal en España Convenio” from the Spanish Tax Authorities, Agencia Tributaria and attach the original to the completed form Spain-Individual and send them to the Cardiff address. I was told it is not necessary to complete the Spanish part of the form.

I was also told I could send the necessary information to HMRC once I had received my Pension letter informing me of the amount I would get i.e I did not have to wait until actually receiving the pension

https://www.gov.uk/government/upload...individual.pdf

Fred James

Thanks for the update - so they seem to have dropped the FD9 form now permanently - probably because the Spanish tax office won't cooperate.

They will just have to accept that you may or may not have declared your pension in Spain. Sadly, it also means a potential delay in sorting it out as you will probably have to wait until you have completed your first tax declaration before they will issue a certificate.

That said, there is a Spanish Form 030 which you use to advise Hacienda of your tax status, address etc. If you complete that it may be possible to get the certificate. It probably depends on which tax office you go to.

Please keep us advised of the outcome as it seems to change all the time.

Brano77

I was anticipating that the certificate “Residencia Fiscal en España Convenio just confirms that you are tax resident in Spain and have been submitting annual returns as we have been for the last six years. I will find out shortly!

Brano77

Went to tax office today and no problem obtaining above. The wording includes in English "The tax Authorities of Spain certify that to the best of their knowledge XXXXX (name) with ID XXXX (NIE number) is a resident of Spain within the meaning of the Spain and United Kingdom tax Convention"

classified

I have always paid tax in Spain since running a pub, after I closed the pub, I still went each year to send a tax form in at my local Mapfre. I have just been in regarding my state pension which I started receiving last year. I was told I had nothing to pay as I was under the personal allowance of Spain, I also sent of for the Individual tax form.
I have paid Mapfree to help apply to get the certificate of residency for the UK, when will I receive this as my Spanglish is small.