OK, it’s that time of year again when preparation for the filing of Annual Tax Returns starts.
It is an accepted part of life for those working in Spain.
However, for those who “just live” in Spain there is the belief that there is no need to file a return in Spain because taxes are paid in the UK:
This illusion has been held by many for years. But it won´t be for much longer. The Hacienda now has access to the Catastral and already letters have been received asking why a property owner is not registered for Tax, whether it be as a resident or a non resident.
Where previously no one really bothered about who was paying tax and where, in the current climate and with the need to raise more revenue this will no longer be the case.
Indeed many who have bought a resale property have never received any advice on their Tax situation and are oblivious of the requirements. Unfortunately, ignorance is no excuse.
You have been warned!
To set the record straight.
If you are a non resident (are not in Spain for more than 183 days) then you need a fiscal representative. Further you should file a non residents tax declaration.
If you live in Spain for more than 183 days of the year then you are a resident of Spain and should file an annual tax declaration.
You will not be required to pay tax twice, as there is a double taxation treaty between Spain and the UK. For those on a Civil Service pension there is no option but to pay the tax in the UK.
Declarations for the year 2010 are now being prepared. The time to file a residents Tax Return is May-June but you need to get your paperwork in order now. The final document required will be a P60 usually received in April.
As with all tax related matters personal circumstances vary so it is vital to get advice. To assist expats we are holding weekly surgeries, which are free of charge. All you have to do is phone and make an appointment.
Finally there are benefits to filing a residents Tax Return in Spain, where allowances are given against mortgages, children etc. As with the UK there are personal allowances. There is also the option for a married couple to file a joint return, which can be of benefit. It can also assist when calculating Inheritance Tax.
For more information or to make an appointment please see http://www.costablancalawyers.com/ and don´t forget THE FIRST CONSULTATION IS FREE
It is an accepted part of life for those working in Spain.
However, for those who “just live” in Spain there is the belief that there is no need to file a return in Spain because taxes are paid in the UK:
This illusion has been held by many for years. But it won´t be for much longer. The Hacienda now has access to the Catastral and already letters have been received asking why a property owner is not registered for Tax, whether it be as a resident or a non resident.
Where previously no one really bothered about who was paying tax and where, in the current climate and with the need to raise more revenue this will no longer be the case.
Indeed many who have bought a resale property have never received any advice on their Tax situation and are oblivious of the requirements. Unfortunately, ignorance is no excuse.
You have been warned!
To set the record straight.
If you are a non resident (are not in Spain for more than 183 days) then you need a fiscal representative. Further you should file a non residents tax declaration.
If you live in Spain for more than 183 days of the year then you are a resident of Spain and should file an annual tax declaration.
You will not be required to pay tax twice, as there is a double taxation treaty between Spain and the UK. For those on a Civil Service pension there is no option but to pay the tax in the UK.
Declarations for the year 2010 are now being prepared. The time to file a residents Tax Return is May-June but you need to get your paperwork in order now. The final document required will be a P60 usually received in April.
As with all tax related matters personal circumstances vary so it is vital to get advice. To assist expats we are holding weekly surgeries, which are free of charge. All you have to do is phone and make an appointment.
Finally there are benefits to filing a residents Tax Return in Spain, where allowances are given against mortgages, children etc. As with the UK there are personal allowances. There is also the option for a married couple to file a joint return, which can be of benefit. It can also assist when calculating Inheritance Tax.
For more information or to make an appointment please see http://www.costablancalawyers.com/ and don´t forget THE FIRST CONSULTATION IS FREE
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