Tax resident
Oct 5th 2010, 6:45 pm
#1
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Tax resident
In a thread recently mention was made of becoming a tax resident that would be necessary when it came to selling property in Spain.
As a non tax payer i.e. my income is below the tax threshold in the uk I pay no tax. So would I need to to register or whatever as a non tax payer if I decided to sell and if so how would I go about it.
As a non tax payer i.e. my income is below the tax threshold in the uk I pay no tax. So would I need to to register or whatever as a non tax payer if I decided to sell and if so how would I go about it.
Oct 5th 2010, 8:39 pm
#2
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Re: Tax resident
In a thread recently mention was made of becoming a tax resident that would be necessary when it came to selling property in Spain.
As a non tax payer i.e. my income is below the tax threshold in the uk I pay no tax. So would I need to to register or whatever as a non tax payer if I decided to sell and if so how would I go about it.
As a non tax payer i.e. my income is below the tax threshold in the uk I pay no tax. So would I need to to register or whatever as a non tax payer if I decided to sell and if so how would I go about it.
The tax threshold for declaring tax in Spain is very low - like about €1600 depending on your circumstances.
You may well end up paying no tax in Spain but that does not necessarily mean you do not have to declare every year.
When you sell property in Spain and wish to claim the exemptions that may apply to tax residents you will have to prove that you are tax resident and produce a certificate of tax residency for the notary.
Without having made tax declarations for the previous 3 years it may be difficult to obtain that certificate.
Oct 6th 2010, 1:45 am
#3
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Re: Tax resident
What has the tax threshold in the UK got to do with it?
The tax threshold for declaring tax in Spain is very low - like about €1600 depending on your circumstances.
You may well end up paying no tax in Spain but that does not necessarily mean you do not have to declare every year.
When you sell property in Spain and wish to claim the exemptions that may apply to tax residents you will have to prove that you are tax resident and produce a certificate of tax residency for the notary.
Without having made tax declarations for the previous 3 years it may be difficult to obtain that certificate.
The tax threshold for declaring tax in Spain is very low - like about €1600 depending on your circumstances.
You may well end up paying no tax in Spain but that does not necessarily mean you do not have to declare every year.
When you sell property in Spain and wish to claim the exemptions that may apply to tax residents you will have to prove that you are tax resident and produce a certificate of tax residency for the notary.
Without having made tax declarations for the previous 3 years it may be difficult to obtain that certificate.
Oct 6th 2010, 3:44 am
#4
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Re: Tax resident
Hello, I think I know you
Oct 6th 2010, 5:57 am
#5
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Re: Tax resident
I think a general misunderstanding needs to be cleared up. You MUST submit a tax return if you are resident in Spain. There may well be no tax to pay or there may even be a refund!
There are many reasons for doing this but not least of which are the possible tax breaks later on when property is sold, or when someone dies etc.
Oct 6th 2010, 8:21 am
#7
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Oct 6th 2010, 9:49 am
#8
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Re: Tax resident
In a thread recently mention was made of becoming a tax resident that would be necessary when it came to selling property in Spain.
As a non tax payer i.e. my income is below the tax threshold in the uk I pay no tax. So would I need to to register or whatever as a non tax payer if I decided to sell and if so how would I go about it.
As a non tax payer i.e. my income is below the tax threshold in the uk I pay no tax. So would I need to to register or whatever as a non tax payer if I decided to sell and if so how would I go about it.
I submitted year one, not year two (on his advice) but I will submit again for this year. It will probably be a nil return, but it does what has mentioned above ... gets you on the radar.
Oct 6th 2010, 12:55 pm
#9
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Re: Tax resident
I think this link gives a good overview explanation of paying tax in Spain
http://www.abacoconnect.com/resident-taxes-in-spain
(but note SUMA is an agency collecting local taxes in the Alicante province only - other provinces will have an equivalent or pay the town hall directly.)
I am not recommending the company - but thought their text was useful for those who do not understand their position.
Remember to get the tax advantages you have to be fiscally resident ie make a tax declaration in Spain.
http://www.abacoconnect.com/resident-taxes-in-spain
(but note SUMA is an agency collecting local taxes in the Alicante province only - other provinces will have an equivalent or pay the town hall directly.)
I am not recommending the company - but thought their text was useful for those who do not understand their position.
Remember to get the tax advantages you have to be fiscally resident ie make a tax declaration in Spain.
Oct 6th 2010, 4:57 pm
#10
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Re: Tax resident
Thankyou Mitzyboy, have PM'd you.
Oct 6th 2010, 5:38 pm
#11
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Re: Tax resident
There is some very good info on this site about tax returns.
http://www.advoco.es/home/22-latest/...ax-return.html
It is arguably the best site I have found regarding tax etc in Spain.
http://www.advoco.es/home/22-latest/...ax-return.html
It is arguably the best site I have found regarding tax etc in Spain.
Oct 7th 2010, 11:36 am
#12
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Re: Tax resident
Of course, rules and 'limits' are different everywhere.
I think a general misunderstanding needs to be cleared up. You MUST submit a tax return if you are resident in Spain. There may well be no tax to pay or there may even be a refund!
There are many reasons for doing this but not least of which are the possible tax breaks later on when property is sold, or when someone dies etc.
I think a general misunderstanding needs to be cleared up. You MUST submit a tax return if you are resident in Spain. There may well be no tax to pay or there may even be a refund!
There are many reasons for doing this but not least of which are the possible tax breaks later on when property is sold, or when someone dies etc.
Oct 7th 2010, 11:45 am
#13
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Re: Tax resident
As a fellow Oliva region resident, I have a good tax Gestor in Gandia - if you need it then let me know. Speaks English and has a high end bank background. In fact, his office is in a bank. About €50 - €60 for a nil reurn
I submitted year one, not year two (on his advice) but I will submit again for this year. It will probably be a nil return, but it does what has mentioned above ... gets you on the radar.
I submitted year one, not year two (on his advice) but I will submit again for this year. It will probably be a nil return, but it does what has mentioned above ... gets you on the radar.
Rosemary
Oct 7th 2010, 2:31 pm
#14
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Re: Tax resident
Fred - thanks, the Advoco site is very informative.
And now I can't see any reason for so much apathy and confusion about sorting out tax affairs.
And now I can't see any reason for so much apathy and confusion about sorting out tax affairs.
Oct 8th 2010, 11:25 am
#15
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Re: Tax resident
"Without having made tax declarations for the previous 3 years it may be difficult to obtain that certificate."
Fred - like you I was under the impression that it took 3 years to qualify for the benefits - in a column in today's RTN paper - Aboco (local company) are stating 5 yrs for the Andalusia and Valencia regions.
A change or maybe an error? Any thoughts?
Fred - like you I was under the impression that it took 3 years to qualify for the benefits - in a column in today's RTN paper - Aboco (local company) are stating 5 yrs for the Andalusia and Valencia regions.
A change or maybe an error? Any thoughts?