Spanish Income Tax

TAX ADVICE

For the information of all readers I spent a bit of time with tax advisors who are employed by the below named company.

I was asking advice, for my own benefit, as I had had so many conflicting stories about Income Tax rules for expats in Spain. I thought it may be worth sharing it.

She basically informed me that if a person was resident in Spain, for more than 6 months in the year, they should register at their local Spanish Tax Office as tax resident (for us in Huercal Overa) and declare all their income to the Spanish authorities. 

As my income comprises a Crown Pension, a state pension, a small other pension and a tiny bit of investment income she advised me that 

1. A Crown Pension (CP) cannot be taxed in Spain and does not come into the calculation of total income for Spanish Taxation purposes.
2. Other persons can be subject of Spanish Taxation but only where the total exceeds €11,200.
3. I should register in Spain with the authorities as Spanish Tax resident but with the completion of a Form FD 9 and this will also inform the UK authorities of the correct taxation standing of my wife and I.

   d)   If you have other incomes, such as rental income, annuity income, bank interest or           investment income, capital gains or losses, you should contact a tax advisor to check if you have obligations to the Spanish Authorities to file tax returns. remembering that the deadline for submitting your tax returns in Spain is by the 30th June of the following year.

If I was non resident but owned a property in Spain I should register with the authorities as ´non resident´,  again by completion of the above form. If I fell into this category the Spanish Taxation authorities would charge me a tax on the Catastral Value of my Spanish property e.g. for a property which is valued at the Catastral Office at€78,000 the tax payable would be about  €212.

The deadline for submitting your non resident tax is 31st December of the following year.

I am posting this information on the blog to help anyone understand a bit better the process and basic rules as these have changed in the past 12 months and the Spanish authorities are being more thorough in checking that people are correctly registered for tax. There is as I understand a bit of an amnesty by the Spanish authorities until the 30th June for declaring pension incomes.

The company for whom my advisor above works is  Saga Negocios SL, Calle Del Mar 04650 Vera, telephone  950393176 fax 950393177 and her email is belen@saganegocios.com and I would recommend her for any help you may need. They will be moving to a new office from the 1st of September. Our new address will be Calle Del Mar, Pasaje Venus, Edif. Vegamar 1·6a de Vera (opposite current office)