evelyn01

Hi there

I have asked a week ago about DUA document - because I need it to register my car here in Canary islands.. finaly I found a company that do it, but the problem is - they told me I wouldnt have to pay any IGIC tax if I bring residency certificate. And here comes the question:

I applied for padron a week ago (got a yellow and light greenish paper as a copy) with stample on it -> they told me I have to go national police to get certificate -> I did so -> there they told me - "you have to wait 2-3 weeks before you can get the residency certificate if you are not workin here" (I m not)... so I have to wait one more week I guess?

now., want to know - does it have any drawbacks for me? mandatory stuff etc..? as I am not workin in spain, just residin and living from my saved money earned years ago... (we are here 6 months, planning on stay more-thats why registering that car... or its just a formality and Im not obliged to do anythin yearly about taxes etc...? (dont want anyone after 3 years knock on my door and say: you are a resident for a long time, where are your taxes...?

the IGIC tax would be €300 otherwise... :/

please let me know...


thank you
Evelyn

lynnxa

it's not a choice, really

if you're living in Spain for mor ethan 90 days you are supposed to register as resident .............. lot's of people who are only here for a few months don't though - neither do a lot who are living here long term

lots also don't make tax declarations either - but that has just come back & bitten a lot of pensioners on the culo........................

evelyn01

ah ok, though thats what I am askin, my saved money are not to be taxed, right?

lynnxa

income would be taxed - but if you're here less than 183 days a year you're not tax resident anyway

evelyn01

so whatever I would earn in Spain during my stay etc...? (I gues that if you stay working in one country for less than 183 days so earning from that country should be taxed in spain too... right?

lynnxa

if you were earning here ( you said you aren't working ) then yes, you'd have to pay tax here

evelyn01

aaaaahh there was WOULD ... Im NOT, just clearing some things up for me..

EsuriJohn

Its simple really you should have your NIE number if you buy or rent in Spain. If you have a foreign reg car here for more than three months you have to Matriculate onto a Spanish plate. If you stay more than 90 days continuously you have to sign on the Register of Foreigners and get the Certificate of Residency (Green A 4 sheet with your NIE on it). If you are in Spain for 183 days in any calender year ( does not have to be continuous) you are a fiscal resident and taxable on your worldwide income including interest on savings wherever they are held and if you have more than about €700,000 in assets you are subject to wealth tax as well. You should also sign on the local Padron and become Empadronmiento.

Ozzidoc

What are the implications for earned income vs unearned income?

best wishes

Fred James

Income is income and it's all taxable.

The difference is that earned income is taxed at the normal tax rates but income from investments etc is taxed as savings income at a slightly lower rate.

lynnxa

what Fred said

but I was making the distinction between working/earning & just living off savings, which is what the OP said they were doing

EsuriJohn

I think its fair to assume that if they have enough savings to live off they have it invested somewhere to earn interest until they spend it!

britishbull

You have a personal allowance of approx 5000 Euro in Spain (more if you are married or OAP), any interest that you earn over this allowance will be taxed but if it is already taxed where you get the interest then that tax will be deducted from whatever the Spanish authorities think you should pay... I think tomorrow they are announcing higher tax rates so see what happens. What you want to avoid is the social security payments as they are a minimum of 250 euro a month and I think you need to pay that to get health care if you are under 65 but assume it is only charged if you have local income, may change tomorrow.

Bear in mind that if you have a Spanish bank account with any funds it in and the local or national government think you owe them money they will take it straight out of the account if the funds are there!

To avoid all this nonsense, leave the country every 90 days and don't stay for more than 183 days in a tax year.

evelyn01

hmmm, sorry but could you translate it a little into "normal-dumb" english?

lynnxa

let's hope so.....