iant

Don't forget that if the property is jointly owned by husband and wife, BOTH have to be over 65 to get full exemption from capital gain on sale of permanent residence, otherwise the exemption is restricted to half of the gain only.
iant

SHERGAR

Can anyone here inform me if they have a financial year in Spain and does it start on April 1st as it does in UK?

Would April 1st be the starting date for your tax year?

Thanks

jo-ann

Its from 1st Jan to 31st Dec

snikpoh

That's for residents only I think. For non-residents, isn't it mid-year?

Fred James

A tax year is a tax year!

When the tax is due is a different issue.

snikpoh

What I was meaning was that there are dates by which the forms have to be submitted in Spain. I agree, it seems that in Spain a tax year runs from January 1st and not April 1st.

For businesses, is it like the UK where you can declare any date you want? I know that my business has a tax year from 1st September.

bigglesworth

Fred, I will come online in a few weeks with a host of questions. (I know many of the answers are in the threads, buyt I generally can only connect at 1 or 2 Kilobits (not bytes!).
In principle though, we have the empadronamiento, Residencia will be December I am told, but from an earlier post (perhaps of yours?) I am under the impression that I should register for tax residency by NEXT June?

Many thanks

Fred James

If you come here later this year you will not have spent the requisite 183 days in Spain so you will not be tax resident for 2009.

If you live here permanently next year you will become tax resident at the end of June and you will be considered tax resident for the whole of 2010. Unless you are autonomo or employed, you will submit a tax declaration for earnings in 2010 by the end of June 2011. So - a nice long tax holiday!

Incidentally you do not register for tax residency as such - you just submit a tax declaration on time. If for some reason you want a Certificate of Tax Residency (the notary sometimes insists on this as proof of tax residency) then you can easily get one from the tax office.

Fred James

I can't help on that one - having never worked or run a business in Spain I have no experience of how that system works.

No doubt someone else will know.

spainrico

Try researching here:

http://www.agenciatributaria.es/wps/...S&menu=0&img=0

spainrico

and here..........

http://www.spainsolicitors.com/non-r...income-tax.htm

spainrico

Answering my own question! Just found this:

Lettings

One of the novel features of the act which came into force on 01 January 2007 is that lettings to young persons between 18 and 35 years of age are now tax-exempt. Moreover, if the tenants aren't in this age bracket, the landperson will only have to declare 50% of the income.

It's more beneficial to let a flat for living in than to let it as an office or shop, because in the latter case the landperson will have to pay tax on the whole income; he or she won't get all of the rent in because the lessee will withhold 15% from him or her; and furthermore, he or she will have to send in quarterly VAT returns.

Costs of improving the property: up until 31-12-06 it was only possible to deduct costs, including financial ones, up to the level of the income received. From 2007 onwards, however, it is permissible for these costs to exceed the income, and even to produce a negative net result. Hence, the costs may be offset against other current income or against letting income as far back as four tax periods ago.