Spanish Resident / Spanish tax return / Shares and Dividends
Mar 11th 2021, 8:48 am
#1
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Joined: Mar 2021
Posts: 538
Spanish Resident / Spanish tax return / Shares and Dividends
Towards the end of last year, I invested in some shares in Spain so I need to get some understanding of the reporting requirements…
For the tax year 2020, none of the shares were resold so there is no capital gain there, although the shares did rise in value. I did receive some dividends.
What thresholds apply, for any of the above, which trigger reporting to the tax authorities?
For the tax year 2020, none of the shares were resold so there is no capital gain there, although the shares did rise in value. I did receive some dividends.
What thresholds apply, for any of the above, which trigger reporting to the tax authorities?
Mar 11th 2021, 9:21 am
#2
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Posts: 3,142
Re: Spanish Resident / Spanish tax return / Shares and Dividends
You need to declare actual income - ie the dividends. There are no allowances on this (as far as I know) The rise in the value of the investment is irrelevant until you sell them or you can sometimes roll investments over into new investments with no tax liability again until you sell them. Most (all?) of these transactions are automatically reported and for example, all banks make the appropriate reporting to AEAT and will automatically appear on your borrador.
Best to use a professional gestor to make your declaracion de renta at least for the first few years until you get a better understanding of how the system works.
Assume you have been through the process to opt out of paying tax in UK (assuming you were tax resident in UK) and entered into the Spanish system.
Best to use a professional gestor to make your declaracion de renta at least for the first few years until you get a better understanding of how the system works.
Assume you have been through the process to opt out of paying tax in UK (assuming you were tax resident in UK) and entered into the Spanish system.
Mar 11th 2021, 9:44 am
#3
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Thread Starter
Joined: Mar 2021
Posts: 538
Re: Spanish Resident / Spanish tax return / Shares and Dividends
You need to declare actual income - ie the dividends. There are no allowances on this (as far as I know) The rise in the value of the investment is irrelevant until you sell them or you can sometimes roll investments over into new investments with no tax liability again until you sell them. Most (all?) of these transactions are automatically reported and for example, all banks make the appropriate reporting to AEAT and will automatically appear on your borrador.
Best to use a professional gestor to make your declaracion de renta at least for the first few years until you get a better understanding of how the system works.
Assume you have been through the process to opt out of paying tax in UK (assuming you were tax resident in UK) and entered into the Spanish system.
Best to use a professional gestor to make your declaracion de renta at least for the first few years until you get a better understanding of how the system works.
Assume you have been through the process to opt out of paying tax in UK (assuming you were tax resident in UK) and entered into the Spanish system.
Was operating under Beckhams Law (Royal Decree 687/2005) when I came here first. Now, UK investments are done via a 720.
I have been using an accountant since the Beckham Law entitlement ended, for both the 720 and the Spanish tax return.
So it is clear that until the shares are sold, there is no capital gain, so no tax due.
On the point of the dividends I am unclear. My UK shares are in a deadicated share account and any cash is held on account. So there is no income and I do not pay tax, until I withdraw funds....
However, the share account I have in Spain is an ´add on´ option to my bank account. Dividends go in their and it is a muddle as they are in the middle of my day-to-day transactions.
The nub of the issue is, if I make this bank account for share dealing only, don´t withdraw any dividends and the cash stays on account, I can defer paying tax on this capital gain until I withdraw any income from this account?
