TIE & working occasionally in UK
Ive tried searching for the answer but can’t find what I need to know.
I have a friend who lives in Benidorm, has TIE, visits UK quite regularly where she owns an house and while here works shifts in a caring environment. Should she declare that income in Spain for tax purposes, she is led to believe that she doesn’t need to declare it. |
Re: TIE & working occasionally in UK
She should be doing a 720 declaration in Spain every year, if the house is worth more than 50k euros...
it is mandatory if she is resident in Spain. :wave: |
Re: TIE & working occasionally in UK
She must also declare her UK income in Spain and pay Spanish income tax on it. Any UK tax paid on that income can be offset against the Spanish tax. As a Spanish tax resident she must declare all world wide assets on Form 720. Failure to do so can result in very large fines.
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Re: TIE & working occasionally in UK
Why does everyone asks questions on behalf of friends? Cant the friends do it themselves???
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Re: TIE & working occasionally in UK
Originally Posted by Chipmonk
(Post 13067506)
Why does everyone asks questions on behalf of friends? Cant the friends do it themselves???
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Re: TIE & working occasionally in UK
720 every year, really?
That will come as news to many! |
Re: TIE & working occasionally in UK
Yup mate!
Take it VERY SEROUSLY, if you are required to do a 720!!! Accountants here is Spain will do it for you but I check it myself in huge detail, before it is submitted. Any mistakes and you personally are in for exorbitant fines and not the accountancy firm. To cover themselves they send it to you to check, before it is submitted. However, the matter of the fines associated with the 720 is now up in the air as the european union have taken the Spanish government to court over, as the fines are excessively punitive. Anyone with overseas investments over 50k euros must do it ever year. There is one caveat that if you value does not change by within certain limits it is not necessary to resubmit it. In addition to the above relevant legal documents need to be translated to Spanish! |
Re: TIE & working occasionally in UK
Originally Posted by Lefty2021
(Post 13067435)
Ive tried searching for the answer but can’t find what I need to know.
I have a friend who lives in Benidorm, has TIE, visits UK quite regularly where she owns an house and while here works shifts in a caring environment. Should she declare that income in Spain for tax purposes, she is led to believe that she doesn’t need to declare it. As a friend, she may have told you that she's not paying tax this year and you've jumped to the wrong conclusions. Sometimes, friendly advice may not be welcome. |
Re: TIE & working occasionally in UK
Once you become resident in Spain and take up employment, thereafter you are liable for taxes in Spain.
So taking the example of first half of the year 2020 in the UK and second half in Spain, then one return required for the empoyment in the UK (Jan to June) and one in the Spain (June to December). Two tax returns required. |
Re: TIE & working occasionally in UK
Originally Posted by agree_to_disagree
(Post 13067440)
She should be doing a 720 declaration in Spain every year, if the house is worth more than 50k euros...
it is mandatory if she is resident in Spain. :wave: |
Re: TIE & working occasionally in UK
Originally Posted by agree_to_disagree
(Post 13067568)
Once you become resident in Spain and take up employment, thereafter you are liable for taxes in Spain.
So taking the example of first half of the year 2020 in the UK and second half in Spain, then one return required for the empoyment in the UK (Jan to June) and one in the Spain (June to December). Two tax returns required. |
Re: TIE & working occasionally in UK
Just checked bob and yes is based on the purchase price, not the market value.
An initial 720 will be required in the case of a property based on the purchase price of the property and thereafter no more. However, for other investments - If the value has not changed by more then 20,000euros, no 720 required. - If you have something like shares or other investment vehicles and you buy or sell any of these then 720 is required. |
Re: TIE & working occasionally in UK
Originally Posted by agree_to_disagree
(Post 13067582)
Just checked bob and yes is based on the purchase price, not the market value.
An initial 720 will be required in the case of a property based on the purchase price of the property and thereafter no more. However, for other investments - If the value has not changed by more then 20,000euros, no 720 required. - If you have something like shares or other investment vehicles and you buy or sell any of these then 720 is required. Also if ones situation is straightforward or only requiring to declare property etc then with a digital certificate you can submit it online easily. Obviously if situation is more complex as you said earlier take advice to ensure no errors are made. |
Re: TIE & working occasionally in UK
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