Information and questions about the Law in Spain and Andalucia.
Posts: 18
Joined: Mon Dec 29, 2014 12:55 pm
Location: Galera near Baza


Postby Daisymay1 » Wed Nov 30, 2016 8:27 pm

We have just become resident and now want to sort out our Tax, we have paid our 210 non resident tax but are very confused on our obligations re our tax.

Before we became resident We had an appointment with what we thought was an accountant but in fact turned out to be a Gestor and we are not sure the advice was correct, we were told that we should pay our tax in the uk as we have a house that we rent out, this provides our income we also have some savings but earn no money here in Spain, the Gestor gave us HMRC forms in both English & Spanish to complete and told us to return to her once we were resident to then become fiscal resident.

Is any of this correct ? We have been told we can chose to become fiscal or non fiscal, really don't want to get this wrong and get in trouble, I have tried to look back on previous post but have not found anything similar.

It appears that it is very difficult to find an accountant for one and impossible to find an accountant that understands both uk & Spanish tax, any advice would be really helpful or recommendations for such accountants would be great, we would travel if needs be. Thanks in advance

El Cid
Andalucia Guru
Posts: 13926
Joined: Sun Oct 24, 2004 10:42 pm
Location: La Herradura, Costa Tropical, Granada

Re: Tax

Postby El Cid » Wed Nov 30, 2016 8:47 pm

Firstly, you should read the section in the FAQs that covers tax.


If you are letting a property in the UK you will have to pay UK tax on the rental profit made. However, if you are a fiscal resident in Spain, that rental is also liable to tax in Spain. You cannot pay tax twice on the same income, so you would be able to deduct any tax paid in the UK from the tax paid in Spain.

Any other income you may have, including interest and gains from investments, anywhere in the world will be taxable in Spain. There are some exceptions such as UK government pensions.

Fiscal residency is not a matter of choice, it is a matter of fact. If you spend more than 183 days in Spain in one calendar year, you become tax resident.

Finding a gestor or accountant who really understands all the aspects of the UK /Spain tax treaty is not easy, but there are some who do. Incidentally some personell at the tax office don't understand it either! I don't know of any in your area, but other members may have recommendations. You are not living in an obvious expat area, so finding one will be more difficult than if you lived somewhere like Nerja.


Posts: 1238
Joined: Sat Apr 07, 2012 11:49 am
Location: The Earth

Re: Tax

Postby elusive » Wed Nov 30, 2016 9:00 pm

Get a non resident landlord form from hmrc.if you fill that in you will get you rental income tax free but will have to do a self assesment at the end of the year and depending if the income is above your uk allownces you might have to pay some tax.

Also theres another form from hmrc to get your uk savings intrest paid tax free. cant remember the name sorry.but if you fill that in and give it to your bank they will pay it tax free although some banks dont except it and you will have to claim it back later

User avatar
Andalucia Guru
Posts: 7965
Joined: Tue Mar 24, 2009 9:47 am
Location: Camberley/Alcala La Real

Re: Tax

Postby Enrique » Wed Nov 30, 2016 9:59 pm

Hi elusive,

Your last paragraph doesn't sit too well with the following info on the Web............ :?:

"A crucial difference after April 2016 is that your savings interest will be paid gross, i.e. without tax having been deducted. It is now down to the individual saver to settle any tax payments they need to pay."

Some light reading.............. ... en-off-r85
UNIX is basically a simple operating system, but you have to be a genius to understand the simplicity.

Posts: 1238
Joined: Sat Apr 07, 2012 11:49 am
Location: The Earth

Re: Tax

Postby elusive » Thu Dec 01, 2016 9:28 am

Yeah thats true. New change in the law. had forgotten about the £1000 savings allowance.obviously depending on how much intrest they make they might still have to pay uk tax on that though. whether theres anything they can do diff as a non resident is maybe something to check but it seems the R85 form has now been finished with.

Return to “You & the Law in Spain”

Who is online

Users browsing this forum: No registered users and 6 guests