Spanish Income Tax
#1
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Spanish Income Tax
Thanks to this forum and its contributor(s) now have a better understanding of the 'rules' Will log on to the padron then Residencia and afterwards our S1's with the INSS.
Then if my understanding is correct the tax year runs January through to December.
Thus if registered on the say 30th of June is the income from then to the end of the year or immediately upon setting foot in Spain?
Our income upon leaving for Spain falls to the UK and our accountants have registered the departure date with HMRC.
However our income stream is reflected in £ and gross.
Please how does one arrive at the euro/£ rate for taxation purposes in Spain. In France on the 31st of December Le Banque de France issued an average rate for the year.
many thanks
Then if my understanding is correct the tax year runs January through to December.
Thus if registered on the say 30th of June is the income from then to the end of the year or immediately upon setting foot in Spain?
Our income upon leaving for Spain falls to the UK and our accountants have registered the departure date with HMRC.
However our income stream is reflected in £ and gross.
Please how does one arrive at the euro/£ rate for taxation purposes in Spain. In France on the 31st of December Le Banque de France issued an average rate for the year.
many thanks
#2
Re: Spanish Income Tax
Hi,
It's just the same in Spain, the bank quotes a rate as of 31st December each year.
If you move on 30th June 2015, then (it's my understanding) your first tax return is due june 2016 for the 2015 year. If, however, you don't arrive 'till a few days later, then your first return will not be due until june 2017 for the 2016 year.
Be careful.
It's just the same in Spain, the bank quotes a rate as of 31st December each year.
If you move on 30th June 2015, then (it's my understanding) your first tax return is due june 2016 for the 2015 year. If, however, you don't arrive 'till a few days later, then your first return will not be due until june 2017 for the 2016 year.
Be careful.
#3
Re: Spanish Income Tax
As for the exchange rate, there does not seem to be an official rate. The BOE does publish a rate for the 31st December which is used for the wealth tax and asset declaration. You can easily find the average rate for the year from various FX sites or use the exact rates on the day that the transaction took place. I have pensions paid directly to my Spanish bank and I just add up the actual payments that I received.
#4
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Joined: Jun 2013
Posts: 990
Re: Spanish Income Tax
Hi,
It's just the same in Spain, the bank quotes a rate as of 31st December each year.
If you move on 30th June 2015, then (it's my understanding) your first tax return is due june 2016 for the 2015 year. If, however, you don't arrive 'till a few days later, then your first return will not be due until june 2017 for the 2016 year.
Be careful.
It's just the same in Spain, the bank quotes a rate as of 31st December each year.
If you move on 30th June 2015, then (it's my understanding) your first tax return is due june 2016 for the 2015 year. If, however, you don't arrive 'till a few days later, then your first return will not be due until june 2017 for the 2016 year.
Be careful.
#6
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Joined: Jan 2013
Posts: 977
Re: Spanish Income Tax
My garbled approach I am afraid. So whatever date I arrive and become resident tax is due on the full year - that is what I thought but as Fred says split years apply in the UK and indeed in France.
#7
Re: Spanish Income Tax
If you arrive after 1st July, because you will be spending less than 183 days in Spain (for that financial year), you will NOT be considered tax resident.
That is why I said - arrive after July 1st and you don't have to do a tax return until 2017 (for the 2016 year).
#8
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Posts: 977
Re: Spanish Income Tax
Thanks I now understand. So 90/183 days are the deciding factors. Unfortunately we are leaving for Spain next week so discount 183 days?
Simply wish to comply with what is asked of us. without wishing to be parsimonious but for us it is the better way. Even then no doubt we will fail to comply with something but that is life.
Thanks once more for the help guidance and advice.
Simply wish to comply with what is asked of us. without wishing to be parsimonious but for us it is the better way. Even then no doubt we will fail to comply with something but that is life.
Thanks once more for the help guidance and advice.