Avoiding becoming tax resident in Spain

Information and questions about the Law in Spain and Andalucia.
booms81
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Avoiding becoming tax resident in Spain

Postby booms81 » Fri Jun 19, 2020 9:35 pm

I talked to a professional about how tax works in Spain and it seems like a complete mess. There's lots of uncertainty e.g. around whether the value of private pensions is relevant for the calculation of wealth tax.

How do people do it who just never actually register for an NIE number? I think if you plan to be here for more than three months you're meant to do a 720 form, but do people just not do that? Avoid flying into Spanish airports or having any contact with the Spanish authorities? Never get an NIE number? How do people actually cope wih this who spend a lot of time in different countries for example?

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costakid
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Re: Avoiding becoming tax resident in Spain

Postby costakid » Fri Jun 19, 2020 9:46 pm

All the expats who live in Spain under the radar and have done so for years will have to get into the system before the end of this year. If not they will be on the 180 day rule and will not be able to stay

elusive
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Re: Avoiding becoming tax resident in Spain

Postby elusive » Sat Jun 20, 2020 9:37 am

How do people do it who just never actually register for an NIE number? I think if you plan to be here for more than three months you're meant to do a 720 form
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You need an NIE to do most big things. Buy a house/car. Rent if its a legit contract. Open a bank account. Having a NIE has nothing to do with been a tax resident. Buy a holiday home here you need one.

720's are for residents if you are here on a four month holiday (eu member) you dont apply for residency. You can stay in the country offically 6 months before you are deemed to be a tax resident

Many under the radars and those out of ignorance have been caught out because of the exchange of info act that came in around 2016 hmrc share info with hacienda

El Cid
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Re: Avoiding becoming tax resident in Spain

Postby El Cid » Sat Jun 20, 2020 11:31 am

Next year you will only be allowed to stay for 90 days in any 180 day period.
That is actually the law now and has been for years, but it's usually ignored as it is difficult to prove an overstay. Next year UK passports will be stamped on entry and exit, which make it easy to enforce.

Whether the Spanish will ignore it is a possibility, but other countries are likely to be stricter.

Sid

katy
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Re: Avoiding becoming tax resident in Spain

Postby katy » Sat Jun 20, 2020 2:02 pm

I know someone who has lived in Spain for approx. 30 years. They have an NIE and have bought and sold a couple of properties. However they have never held a Spanish bank account and keep money in Gibraltar and withdraw cash as needed. I assume they do not pay tax anywhere but don't know their financial affairs. They survived like that pre Spain joining the EU too.

I certainly wouldn't want to live with that hanging over me though. Just imagine being kicked out of Spain and having to leave an expensive home that maybe will take ages to sell.

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spanish_lad
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Re: Avoiding becoming tax resident in Spain

Postby spanish_lad » Sat Jul 11, 2020 2:45 pm

El Cid wrote:
Sat Jun 20, 2020 11:31 am
Next year you will only be allowed to stay for 90 days in any 180 day period.
That is actually the law now and has been for years, but it's usually ignored as it is difficult to prove an overstay. Next year UK passports will be stamped on entry and exit, which make it easy to enforce.

Whether the Spanish will ignore it is a possibility, but other countries are likely to be stricter.

Sid
Many thousands will just stay in the campo.. go to lidl once a week for their beer and gin (but not deoderant) wearing their muddy hippy campo clothes, drive their uk car or rusty old uk transit van.. and still not register.. "cos we dont wanna". Sad but its what spain has become.

And they are the first to moan about spain, or the potholes in the road, or the cost of this and that.. and not being able to see a doctor that speaks english... :problem: :problem:
Alhaurin el Grande since ´99, working at the airport since 2011.


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