Tax Residency Certificate - Process?

[globetrottingcat]

Hi,

I would appreciate some help about how I go about getting a tax residency certificate. I have only lived in Spain for the last 6 months (British citizen but was previously living in El Salvador) and will be moving to the Philippines in July. I live in Estepona at the moment. From the information I gathered so far I would be required to do a tax return, is that correct? And if so, can this be done earlier than July?

Any help would be grateful.

[El Cid]

The Spanish tax year is the calendar year and if you spend 183 days or more in Spain in one calendar year you are deemed tax resident.

Not knowing the exact dates involved, but on the assumption that you moved to Spain only 6 months ago, you would not be tax resident in 2016. If you stay here past the end of June, you will become tax resident.

No, you cannot submit tax returns early, in fact, you will not be able to submit one for 2017 until April 2018.

If you want to be sure that you are not tax resident, just leave Spain before the beginning of July, or have a few days out of the country between now and then.

Sid

[globetrottingcat]

Hi Sid,

Thanks for your response, but not sure you understood what I was asking. I require a tax residency certificate for the Philippine government for my next move in order to process my working visa application.

Being out the country will not help me, as it will mean I was not a tax resident anywhere in the world!

Thanks

[globetrottingcat]

Just to clarify as well I am working in a school and have been paying taxes since September.

[Miro]

Hi,
From the information I gathered so far I would be required to do a tax return, is that correct?

Just to clarify as well I am working in a school and have been paying taxes since September.

I think (but Sid will confirm) that as long as you're earning less than €22k, if your employer is deducting tax at source (PAYE), you don't have to submit a tax return. Since you've been paying tax already, I would have thought AEAT would issue you with a fiscal residency certificate - but I wouldn't bet on anything. I've submitted tax returns (and paid tax) for 20 odd years, but a few years ago, with no explanation or apology, they simply refused to give me one. After a lot of hassle I got one, so be prepared for a fight and stick to your guns. Go to their office (I think they have one in Estepona?) and try. Good luck.

[El Cid]

Hi Sid,

Thanks for your response, but not sure you understood what I was asking. I require a tax residency certificate for the Philippine government for my next move in order to process my working visa application.

Being out the country will not help me, as it will mean I was not a tax resident anywhere in the world!

Thanks

OK, perhaps you should have made that clear initially. Probably 95% of the members of this forum are not employed on contracts.

As Miro said, contact Hacienda and request a certificate. The only problem that I can see is that until July, you are not actually tax resident. Also, if you do become tax resident you will be liable for tax on your world wide income, which means that you would pay tax in Spain on your income in your new job as you are tax resident for the whole year, even if you leave in July.

Sid

[globetrottingcat]

Hi Sid,

Thanks for your response, but not sure you understood what I was asking. I require a tax residency certificate for the Philippine government for my next move in order to process my working visa application.

Being out the country will not help me, as it will mean I was not a tax resident anywhere in the world!

Thanks

OK, perhaps you should have made that clear initially. Probably 95% of the members of this forum are not employed on contracts.

As Miro said, contact Hacienda and request a certificate. The only problem that I can see is that until July, you are not actually tax resident. Also, if you do become tax resident you will be liable for tax on your world wide income, which means that you would pay tax in Spain on your income in your new job as you are tax resident for the whole year, even if you leave in July.

Sid

Until December I paid a tax rate of 24% for non resident and this has gone down to the local rate since January which I believe from what I understood from my employment meant I was a resident from this point.

Could you direct me how I go locating the Hacienda, is this the actual name?

Yes this is why I need tax resident certificate as it will identify the country I should be completing my tax for the rest of the year. My next job pay my taxes so this is not an issue, I just really need the certificate for the working visa.

[globetrottingcat]

Hi,
From the information I gathered so far I would be required to do a tax return, is that correct?

Just to clarify as well I am working in a school and have been paying taxes since September.

I think (but Sid will confirm) that as long as you're earning less than €22k, if your employer is deducting tax at source (PAYE), you don't have to submit a tax return. Since you've been paying tax already, I would have thought AEAT would issue you with a fiscal residency certificate - but I wouldn't bet on anything. I've submitted tax returns (and paid tax) for 20 odd years, but a few years ago, with no explanation or apology, they simply refused to give me one. After a lot of hassle I got one, so be prepared for a fight and stick to your guns. Go to their office (I think they have one in Estepona?) and try. Good luck.

Thanks, unfortunately I am earning more than 22K, could you explain what AEAT is? Apologies for the questions, but I haven't really been here long enough to deal with all the Spanish laws and policies.

[Miro]

Funny, I don't actaully know what AEAT stands for. It's the Agencia Tributaria, the tax office, also known colloquially as Hacienda, although again, I don't actually know why!
Sorry, thought there was an office in Estepona, looks like you may have to go to Marbella:
https://www.agenciatributaria.gob.es/AE ... ones.shtml

[El Cid]

AEAT - Agencia Estatal de Administración Tributaria. Part of Ministerio de Hacienda y Administraciones Publicas - Ministry of Finance and Public Administration

It's a bit like HMRC in the UK which is effectively part of the UK Treasury.

Sid

[wollie]

I hope the original poster not mind me asking but i am curious.
How is the 183 day rule monitored?

[El Cid]

It is not, but if for some reason the authorities take issue with your tax status, it will be up to you to prove that you have not exceeded the limits. Basically guilty until proved innocent.

Sid