Renta Practice

[Curiouse]

I know its to late for this year but i did mine in May however i would like to look at what my tax will be next year as i could have a drastic change of circumstances and would like to know the situation before the end of the year while i still have the options . There used to be a way you could input your information and it would calculate your tax , it could be done as a couple or individually then when you know which is the better one for your particular circumstances you could submit it ,until then you would not be committed .

Is that still available or is it only for someone who has not already submitted their Renta this year .

[El Cid]

You can still access the last simulator. The tax rates etc are not changing much for the 2022 RENTA.

https://www2.agenciatributaria.gob.es/w ... &EJER=2021

Sid

[Curiouse]

Thanks El Cid , exactly what i was looking for . Seems the Personel allowance for 70 and over for the year 2022 is still 6700 euros , same as 2021

[fyfin]

Yes, very useful. I've got a spreadsheet but it doesn't do tax calculation. Not much change except if the exchange rate changes dramatically.
One thing did cause my wife to pay substantially more tax one year was when she had a large online bingo win. She plays regularly on Botemania and spends around €20 per week and was lucky enough to win over €20,000. She got a statement showing profit for the year and when it was declared it went in as if she was a self-employed gambler lol. This means it is added as income so the tax rate can be very high but she never declares the normal losses every other year. It's not like UK where I think winnings are tax free as tax is paid at source.
I'm wondering now about Premium Bonds and if you had a large win on those, how it would be taxed as it's probably seen as an investment and not a lottery as it is in UK. Not that it's likely lol

[El Cid]

Any wins arising from foreign games, lotteries, bonds are taxed in full as a "ganancia patrimonio". The rate is 19%.

Wins on Spanish state lotteries are only taxed above €40k and the tax is withheld at source.

Sid

[fyfin]

Any wins arising from foreign games, lotteries, bonds are taxed in full as a "ganancia patrimonio". The rate is 19%.

Wins on Spanish state lotteries are only taxed above €40k and the tax is withheld at source.

Sid

Interesting so I won't worry as much if I win a million on Premium Bonds but it seems the win online on the Spanish bingo site was treated differently and added to income.

[El Cid]

To quote AEAT "Prizes won through State, Autonomous Community, Spanish National Organisation for the Blind and Spanish Red Cross lotteries" are the only ones that get the tax free allowance.

Sid

[bbobandannie]

Hi good morning all, I am considering completing my own Income Tax Return as for some reason my accountant seems to be ignoring my request for an appointment -although I understand I have until the 30 June to complete so maybe I'm starting to panic too early!

I have looked through this forum trying to find relevant info and have picked up on this thread - apologies to the original poster for jumping on your post, I will happily create a different thread elsewhere if needs be.

We receive UK Government Pensions which are taxable only in the UK and we receive rent from UK properties. People on here have been very helpful in the past with completing the non-residents tax etc and this is the first time we will declare our income, having completed the Modelo F720 earlier in the year, so, so far so good.

I have found the Renta Web practice page and will give that a go once I have found my cadastral reference number as it won't let me go any further.
Before I get ahead of myself though, is there a general advice thread on here on how to complete the Renta, pitfalls to avoid etc. I have read horror stories in the past where accountants have included UK Gov Pensions in the income and the individual has ended up with a huge tax bill and a huge fight on their hand to rectify it. That said, I know how much (ish) we will be expected to pay in Spain, so if the practice calculator brings up a stupid figure then I wouldn't submit it!

I understand there are personal allowances, deductions for expenses, exchange rate issues etc. Also any advice whether to complete a tax return as husband and wife or individually - does it really matter etc (I assume it would be advisable if one person was receiving substantially less than the other and not reaching the allowance threshold but not sure if I am correct in that assumption).

Any advice, be it not to bother and go and find another accountant or not - all input gratefully received.

[Wicksey]

I'm sure others will give full advice but I think that the online form calculates whether it is better to do joint or individual returns, whichever is most advantageous.

I've not been brave enough to try myself whilst we have a rental property in the UK. I do know there is a large discount on rental income but once when the kitchen was refitted, our gestoria said the expenses had to be split over 4 years, so I leave it up to her to deal with until we sell up next year and only have pensions to declare.

[fyfin]

I thought I had replied but seems not. Briefly I considered €40 per year for a Spanish accountant to do my return a good investment lol. I was a factory accountant and did tax returns for self employed friends and my own of course, but when I looked at the Spanish system I gave it a miss.
You just need to do your homework and guide them through the first return e.g. make sure they understand your pension is a "Crown Pension" etc as many of them are not au fait with the UK income and how it should be treated. You'll probably still have to declare your rental income to UK tax authority.

[bbobandannie]

Thanks Wicksey and Fyfin - yes I'm kind of erring on the side of caution but keep having moments of madness thinking it will be ok if I do it myself. Like you Fyfin, I have experience in the UK side of tax returns and will continue to complete them until we sell but the Spanish side keeps scaring me and I don't want to make a mistake.

Hmm, maybe I will just look for another accountant and then maybe next year I could follow their example.

[peteroldracer]

Crown pensions? declare them as "exenta" in Box 525 when doing your return. It somehow alters how much tax they charge although they are exempt, but less than if you simply lump them with your state pension income. My partner gets more than I do with her state and crown pensions, but pays €10 less than me this year. Previous years I have paid nothing and her about €20 so something has changed for 2022!

[Curiouse]

Has anyone found an English version of the Renta that you fill in online , i know can select English but that doesnt give it for the sections and boxs on the form , Google also is not really a satisfactory way of understanding either .

I have done my Renta now for at least 10 years but al i need to input is the figures for my UK State Pension and Private pension , these all go into the same box as income so just a matter of converting the GBP to Euros on the private pension ( UK Pension paid to Spanish account in Euros ) .

This year i need to include Attendance Allowance but unsure where , i am aware that it is taxable but wondering if there is a different box for it as its a unlike pensions or earned income so might be treated differently in some way .

Another issue i wil have is my Wise account , it pays interest but its not interest earned in the same way as it would be i a bank , Wise use a 3rd party who invest it and pay a monthly sum into both our GPB and Euro accounts and tax the at 30% ( Belgium ) together with the fees charged by the 3rd party are already deducted at source but im sure it still has to be declared but again where .

Many thanks for anyone who can assist in any of the above .

[El Cid]

The Renta manual is available in English here:-

https://sede.agenciatributaria.gob.es/S ... l/100.html

Sid

[Curiouse]

Thank you El Cid , the manual will be helpful reference .