Effect of leaving EU on Non-resident income tax

Information and questions about the Law in Spain and Andalucia.
Beachcomber
Andalucia Guru
Posts: 9381
Joined: Tue Jun 15, 2004 11:11 pm
Location: Guadalhorce Valley

Effect of leaving EU on Non-resident income tax

Postby Beachcomber » Sun Jun 26, 2016 6:21 pm

Non-residents (at least those who pay their non-resident taxes) may well be affected by the UK's departure from the EU depending on the terms of the exit because, as the law stands at the moment, the tax rate for people whose fiscal domicile is other than that of an EU member state is 24% (19% in 2016 for people with tax domicile in an EU member state including Iceland and Norway).

Also non-residents who rent out their property will not be able to claim expenses on the tax they pay in respect of their actual rental income.

I'm not sure of the legality of this but that is what the law currently states.

Pamela1
Resident
Posts: 607
Joined: Wed Jan 08, 2014 3:30 am
Location: Co Durham/ Granada Province

Re: Effect of leaving EU on Non-resident income tax

Postby Pamela1 » Sun Jun 26, 2016 6:55 pm

Benidorm, what about those who live under the radar?..i'm referring to the ethic card and people who seem to retain an address in the UK and renew their cards while all the time living in Spain...personally i wouldn't be comfortable living in Spain in that way, i'd always be expecting a knock on the door but for those who are will an EU exit mean end of ethic card?..if that be the case, should they not have more to be worried about?
Not only that, as they are obviously not living in Spain as residents would i be right to imply they could be in a real mess? This could be an interesting answer for those watching the forum in this situation. :problem:

Pamela1
Resident
Posts: 607
Joined: Wed Jan 08, 2014 3:30 am
Location: Co Durham/ Granada Province

Re: Effect of leaving EU on Non-resident income tax

Postby Pamela1 » Sun Jun 26, 2016 6:57 pm

Sorry i meant to say Beachcomber :oops:

User avatar
Enrique
Andalucia Guru
Posts: 7715
Joined: Tue Mar 24, 2009 9:47 am
Location: Camberley/Alcala La Real

Re: Effect of leaving EU on Non-resident income tax

Postby Enrique » Sun Jun 26, 2016 7:45 pm

Hi Pamela1,
To save you making corrective Posts just Edit your Post you wish to change/update............ :!:
UNIX is basically a simple operating system, but you have to be a genius to understand the simplicity.

Beachcomber
Andalucia Guru
Posts: 9381
Joined: Tue Jun 15, 2004 11:11 pm
Location: Guadalhorce Valley

Re: Effect of leaving EU on Non-resident income tax

Postby Beachcomber » Sun Jun 26, 2016 8:00 pm

It is difficult to track those people down and if they are paying their non-resident taxes they probably will not be targeted. The result of the referendum would make no difference to the situation of those who are paying no taxes in Spain whatsoever.

These people are now being target by AEAT which is in the process of correlating property purchases and ownership against payment of taxes, either resident or non-resident, with the presumption being, when they are caught, that they are resident and should be paying resident taxes with all its implications including non-submission of the 720 asset declaration where applicable. Fines and penalties for this alone could run into hundreds of thousands of euros. This correlation is far easier with the updating and regularisation of Catastro records because AEAT has direct access to the information without having to resort to obtaining details of property ownership from a third party in the form of the property registries.

I am not sure if passports of non-EU citizens are still stamped at Spanish borders but if they are this could make life doubly difficult for those who think they are living here under the radar.

These are completely subjective views on my part whereas my initial post in this thread about the tax rates is black and white and totally objective.

elusive
Resident
Posts: 1006
Joined: Sat Apr 07, 2012 11:49 am
Location: frigiliana

Re: Effect of leaving EU on Non-resident income tax

Postby elusive » Mon Jun 27, 2016 10:55 am

Re the ETHIC card,personally i think there wont be much difference as they will probably just have some kind of agreement. Not exactly the same but when we used to go on hols to croatia before they joined the EU you could still use your blue card if needed due to an agreement between the two countries.


Return to “You & the Law in Spain”

Who is online

Users browsing this forum: No registered users and 4 guests