Annual tax for resident?

[bernipops3]

We have been living here for three years now. We have an empardiomento but are not registered as permanent residents although this would be easy to do.

If we live here all the time with no property in the UK but pay tax on our pensions in the UK do we have to pay any taxes here and, if so, what are they and where can we get the forms from. Are there any websites that can help us? I have done a search on google and can only find property tax for non residents. Would it be beneficial to get our residency?

Any help would be greatly appreciated.

Regards
Bernipops

[annfoto]

If your pension is normal one rather than civil service one then you should contact HMRC an ask for it to be paid gross to you as you should declare it here and pay any tax due in Spain.
See here for Spanish tax information: http://www.andalucia.com/forums/viewtop ... 42&t=27576

You should register as a permanent resident ASAP, once you have done that go to your bank and close your visitors account and open a resident's one.
Relevant laws explained here: http://ukinspain.fco.gov.uk/en/help-for ... in/finance

[Trooperman]

There are some renowned experts on this forum who will put you right in no time - aka El Cid and Beachcomber - but have you checked past threads as most of this stuff has come up before.

Here's my take on what you are asking: whether you register as a resident or not is irrelevant - if you spend more than 183 days per year you are resident by default and must register at the main Police Station governing the place in which you live. You'll get a lovely A4 sheet of paper but still have top carry your passport with you for ID purposes! Then do as annfoto says and change your bank account to that of a resident's status - it confers fewer penal charges!

You must make a tax return, even if it is for zero, and as part of that process (although I had to ask a gestor to make it happen for me) the IR will ne notified and will then NOT tax you in the UK, unless, as annfoto says, you receive a government pension where the double taxation rules will apply.

But, please step in El Cid & Beachcomber as I'm floundering!

[fyfin]

I'm no expert either but my understanding was that if you spend more than 183 days in Spain you are resident by default and should pay taxes to Spain with certain exceptions. The two members mentioned are mines of information and have helped me so I'm sure you will soon have chapter and verse.

[El Cid]

As Annfoto said - it's all covered in the new FAQ section at

viewtopic.php?f=42&t=27576

Sid

[El Cid]

if you spend more than 183 days per year you are resident by default and must register at the main Police Station governing the place in which you live.

No, you must register with the police after 90 days and this has nothing to do with tax residency.

You do not register for tax residency - you are deemed tax resident after spending 183 days in Spain in one calendar year. You effectively "register" when you submit a tax declaration.

Sid

[Julie]

Why register with the police ? Not heard that before

[El Cid]

Why register with the police ? Not heard that before

Because the law says that you can only stay in Spain for 90 days as a tourist. After that time you must register with the police or local foreigners office to be put onto the list of EU foreigners staying in Spain for more than 90 days.

You have always had to do that. Previously they wanted photos and fingerprints and gave you a nice plastic residency card - now they just want to see your passport and they give you a piece of paper to prove that you are registered.

It has nothing to do with your tax residency status.

Sid

[chrissiehope]

Probably a silly question, but is that 90 days consecutive or cumulative ?

[El Cid]

Probably a silly question, but is that 90 days consecutive or cumulative ?

It is consecutive so if you leave Spain, even for a day, the clock restarts.

However this does not apply to tax residency, the 183 days in that case are the total number of days.

From that you can see that it is perfectly possible to be a true tax resident but not be required to sign on the foreigners register.

Confusing isn't it

Sid

[chrissiehope]

Thanks Sid - I might have done 90 days cumulatively, but not continuously, & I doubt I'll ever manage 183 in total, so I should be OK !

[Campo Steve]

With regards to paying tax on your pension in UK:

Some can be paid gross, some can't. Not sure which ones can and which can't.

Mine can't be paid gross so, as resident in Spain, I paid tax on it in UK and in Spain. I subsequently reclaimed the tax paid in UK. Along with the refund came a reassessment of my UK tax code. As a result of being resident in Spain my UK code was amended to NT. My pension provider still has to go through the process of deducting tax but, as the code is NT, the deduction is zero, affectively making it paid gross. If that makes sense.

By the way, it seems as though the UK tax people in Spain and UK are talking to each other more these days. I got a letter from the Spanish tax office detailing the interest I had been paid in UK on my UK building society savings accounts. As the figures didn't tally with reality they are checking it out. According to our gestor a number of people have had these letters with incorrect figures.

[Julie]

Is there a penalty for not doing it ? years ago I knew it was 90 days, aswe used to have to prove we had money in the bank to stay longer, didn't realise it was the same now Spain is in europe.
Think I'll leave things as they are , not sure our local police would know what I was going on about if I did go there to register.

[blueeyes]

Can anyone help with this question.I am resident in Spain and now have an Annuity Pension will I still get my tax free personal allowance here in Spain before I start paying tax
Thanks

[El Cid]

Can anyone help with this question.I am resident in Spain and now have an Annuity Pension will I still get my tax free personal allowance here in Spain before I start paying tax
Thanks

Welcome to the forum.

Yes you will get a Spanish tax allowance and if it is a qualifying annuity you will probably pay little or no tax on it.

Please read my tax article in the FAQ section where all will be revealed!

http://goo.gl/r3K7K

Sid

[blueeyes]

Thanks EL CID