Income tax (again!)

[scampicat]

Thanks all for your help, we have contacted our accountant today.

[scampicat]

Hi me again!

After filling the details in the link https://aeat.es/etidomic.html, today I have received some Bar Codes!

I have let my accountant know......but what are they for?

[Enrique]

Hi scampicat,
Barcode labels to stick on Form 210, non-resident tax form.

[scampicat]

Hi scampicat,
Barcode labels to stick on Form 210, non-resident tax form.

Thanks....but I am resident!

[annfoto]

Does anyone know the official £/€ and $/€ conversion rate for la renta 2010 and does anyone know the capital gains allowance? (Resident)

[El Cid]

Does anyone know the official £/€ and $/€ conversion rate for la renta 2010 and does anyone know the capital gains allowance? (Resident)

The official rate will be the annual average over the tax year. The rates are 1.165 €/£ and 0.7546$/€

There are no CGT allowances in Spain. The gain is treated as investment income and taxed at 19% on the first €6000 and 21% thereafter. If it is a long term gain there will be some indexation allowances. If it is a gain on property which is your habitual residence then special allowances may apply.

The only allowances are the normal personal allowances.

Sid

[Beachcomber]

If you want the exchange rate for a particular date in 2010 you can find it here:

http://www.bankofengland.co.uk/mfsd/iad ... J&Filter=N

Scampicat, hang on to the bar code labels because you sometimes need them for other purposes.

[annfoto]

Thanks for the bad news Cid.
The gains are from short time equity trading.

[scampicat]

If you want the exchange rate for a particular date in 2010 you can find it here:

http://www.bankofengland.co.uk/mfsd/iad ... J&Filter=N

Scampicat, hang on to the bar code labels because you sometimes need them for other purposes.

Thanks, will do....hopefully my accountant is sorting everything out! All I want is to be officially Tax Resident!

[scampicat]

Yay! We both got our Certifcates of Tax Residency today after our Accountant submitted a tax return!

[masterob]

We are resident here and each year go to the local tax office with details of our UK State Pension payments. They fill in the relevant form for us so it's very simple and straightforward with no worry about downloading forms or paying someone else to do it on our behalf. It is probably simple because that is all we have to declare as my main pension (on which we live) is taxed in the UK. As for the exchange rate, I use the average over the year and they seem content with that, or at least they have never questioned it.

[scampicat]

Yes, we tried that but our Spanish is not good enough to cope with tax affairs. Our Spanish Accountant speaks really good English so that was best for us.

He has sent us a copy of the form he submitted and we will be able to do it ourselves in the future.

[irismary]

We are resident here and each year go to the local tax office with details of our UK State Pension payments. They fill in the relevant form for us so it's very simple and straightforward with no worry about downloading forms or paying someone else to do it on our behalf. It is probably simple because that is all we have to declare as my main pension (on which we live) is taxed in the UK. As for the exchange rate, I use the average over the year and they seem content with that, or at least they have never questioned it.

Correct me if I am wrong (I'm sure Beach or Cid will know), but as residents, and if you do things correctly, the Renta should show all of your world wide income whether taxed elsewhere or not. Like you, my main pensions are UK Gov related, but I still have to declare them, and the tax paid on them. Only our State pensions are paid direct here, and mine is taxed with one of my UK pension providers. Also, I pay tax here on the interest from ISAs held as tax free investments in UK - I don't mind, as the tax involved here is very little. It works out that I pay tax here - and my husband, who is a non tax payer anywhere, gets a rebate here as we chose to be taxed as a couple!

[country boy]

Bit of a shock for us this year, I have to pay almost €400 in tax this year ( as against 64 cents last) because Zappy has withdrawn a €400 gift he made to all tax payers last year, does this make sense to the tax aware on this forum? My total income has only changed by inflation from last years' return.Seems a bit harsh

[El Cid]

Correct me if I am wrong (I'm sure Beach or Cid will know), but as residents, and if you do things correctly, the Renta should show all of your world wide income whether taxed elsewhere or not. Like you, my main pensions are UK Gov related, but I still have to declare them, and the tax paid on them.

No you should not declare your UK Government pension in Spain. The double Taxation treaty between the UK and Spain clearly states that UK government pensions can ONLY be taxed in the UK.

By declaring it on your Spanish tax declaration it will be taxed in Spain. The fact that you can offset the UK tax does not change that.

It is also going to cost you money as the tax rate in Spain is higher than the UK so you are paying the difference. Also, if your total taxable income is over €17 then you will be pushed up into the next tax band which will cost you even more tax.

Sid

[El Cid]

Bit of a shock for us this year, I have to pay almost €400 in tax this year ( as against 64 cents last) because Zappy has withdrawn a €400 gift he made to all tax payers last year, does this make sense to the tax aware on this forum? My total income has only changed by inflation from last years' return.Seems a bit harsh

It never made sense to me why he gave a €400 gift to every tax payer in Spain at a time when the country couldn't afford it.

Common sense has prevailed and it has been scrapped (well almost, lower income earners may still get some of it).

Sid

[Jool]

confused again now (sorry) - OH only gets a UK govt pension and State pension, HAS to pay tax in UK, thought he HAD to file a nil Renta return here to qualify as tax resident even though tax paid elsewhere for IHT purposes etc?

Has that rule changed now?

[El Cid]

confused again now (sorry) - OH only gets a UK govt pension and State pension, HAS to pay tax in UK, thought he HAD to file a nil Renta return here to qualify as tax resident even though tax paid elsewhere for IHT purposes etc?

Has that rule changed now?

No. He HAS to pay tax in the UK on his government pension and he has to pay (or at least declare it) tax on his UK state pension in Spain.

Financially it is advantageous to do this as he will get all the allowances in both countries.

Sid

[irismary]

[quote="El Cid"][quote="irismary"]


No you should not declare your UK Government pension in Spain. The double Taxation treaty between the UK and Spain clearly states that UK government pensions can ONLY be taxed in the UK.
quote]

Thank you Sid. We were obviously advised badly by our gestor here and have been declaring everything for years. My pensions are NHS and University, and I believe they are both judged Gov type pensions. I guess it is too late to do next years return without all the UK stuff as the tax office will wonder where our income went!

[El Cid]

Thank you Sid. We were obviously advised badly by our gestor here and have been declaring everything for years. My pensions are NHS and University, and I believe they are both judged Gov type pensions. I guess it is too late to do next years return without all the UK stuff as the tax office will wonder where our income went!

I can't see a problem with you just not declaring it next time you declare. If they bother to notice the drop in income they should also notice that you are no longer claiming back the UK tax.

Sid