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voluntary non-resident income tax filing 2016

voluntary non-resident income tax filing 2016

Old Jul 11th 2017, 10:12 am
  #1  
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Default voluntary non-resident income tax filing 2016

I have worked during 2016 on a full-time permanent contract for a Dutch employer for approx. one-third of my time (so less than 183 days) in Spain for a subsidiary of the employer in the BCN area.
As Dutch tax rates are much higher compared to Spain I consider to split my salary and file a tax return in Spain as a non-resident. This concerns 2016 and no Spanish withholding tax was applied during 2016.
Can I still file a tax return for 2016 and what formalities I have to fulfill?

thanks for your reactions
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Old Jul 11th 2017, 10:28 am
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Default Re: voluntary non-resident income tax filing 2016

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

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Old Jul 11th 2017, 12:29 pm
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Default Re: voluntary non-resident income tax filing 2016

If you are not a resident, you cannot file a "normal" tax return.
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Old Jul 11th 2017, 12:30 pm
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Default Re: voluntary non-resident income tax filing 2016

Surely though you are not tax resident in Spain under 183 days. I doubt you will get away with simply beating the the Dutch tax rates that way? Non residents tax in Spain is for non residents paying a small tax for owning property / assets in Spain as I understand it.
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Old Jul 11th 2017, 12:39 pm
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Default Re: voluntary non-resident income tax filing 2016

Also, if you are a Dutch tax resident, they will insist on you paying the tax in Holland as you would still be tax resident there.
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Old Jul 11th 2017, 12:50 pm
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Default Re: voluntary non-resident income tax filing 2016

Sorry Fred I missed your first reply must have been typing at same time, so repeated your reply more or less
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Old Jul 11th 2017, 7:07 pm
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Default Re: voluntary non-resident income tax filing 2016

Where you pay tax when you are a resident of one country working in another is generally determined by Double Tax Agreements (DTA) between countries. Most DTA's contain a clause covering this, which can be very complicated in certain circumstances, such as the one you describe.

As a general principle income you earn in Spain as a non-resident is taxable in your country of residence (so Holland in this case) and may also be taxed in Spain, unless it meets all the following criteria.

1. You are in Spain for less than 183 days in the fiscal year AND
2. The remuneration is paid by an employer which is not resident in Spain AND
3. The remuneration is not borne by a permanent establishment the employer has in Spain.

If you meet all 3 criteria then the income is only taxable in Holland, if you do not then it is taxable in Spain and Holland, with relief allowed in Holland for the tax paid in Spain.

Numbers 1 and 2 are relatively easy to determine, and based on your post are presumably met. However, number 3 is more difficult to determine, and only your employer can properly confirm your situation.

So, if I were you I would ask them, bearing in mind that the general principle is that you should declare it, unless you are exempt as described above.
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Old Jul 11th 2017, 7:15 pm
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Default Re: voluntary non-resident income tax filing 2016

Hi JWF,

I am non-resident in Spain and complete the UK Self Assessment Tax Return each year to declare my earnings from self-employment etc., to HMRC. However, I am still required to pay non-residents tax in Spain. It's an easy process once you've done it the first time. There's a form to be filled out online which is submitted online and generates your tax submission ID for the year. You then print out 3 copies of said form and take it to the bank, along with your cash. They will stamp all 3 copies of the form - the only one copy with the large "F" printed on it they should keep for onward transmission to the Spanish Tax authorities to prove that you have paid your dues. We hold our property in joint names and we each need to make a submission. From memory our tax liability is about 90 euros a year but yours will be different depending on the catastral value of your property.
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Old Jul 11th 2017, 9:14 pm
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Default Re: voluntary non-resident income tax filing 2016

You are talking about non resident property taxes here - an entirely different thing and not relevant to this situation.
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