Leaving spain
Leaving spain
I am leaving Spain to stay in UK house hunting around 1st July and staying in a relatives house and informing HMRC of temporary address and for tax purposes, my wife will be staying till we exchange then I will be going back to sign probably around mid August for 1 or 2 days, will I have to submit a tax return to declare income as I would be in Spain just over 183 days but bearing in mind I was out of Spain from Jan 1st till Jan 21st, will this then not require a declaration thanks.
Re: Leaving spain
If you were out of the spain for more than 183 days then offically no. I guess is up to you to decide.
-
- Andalucia Guru
- Posts: 16076
- Joined: Sun Oct 24, 2004 10:42 pm
- Location: La Herradura, Costa Tropical, Granada
Re: Leaving spain
Also, if your wife remains in Spain your absence will be ignored, so unless you both leave before your 183 days, you will remain tax resident for the whole of 2020.
Sid
Sid
-
- Andalucia Guru
- Posts: 3584
- Joined: Tue Feb 27, 2007 8:20 pm
- Location: Merseyside, formally Torremolinos
Re: Leaving spain
I think (just my opinion, don't quote me!) that if you want to ensure that you can safely avoid submitting a tax return for 2020, all you need to do is declare yourself (and your wife) to be tax resident in the UK by June 30th, i.e. by notifying HMRC of your UK address. The authorities are probably unlikely to check the exact number of days you were physically in Spain.
Of course, if you effectively declare yourselves UK residents for 2020, then your purchaser will have to retain 3% from the sale as you will officially be non-resident sellers in Spain. This is actually the choice we made, (easier for us because we did physically & permanently leave in June) because we wanted to avoid having to pay tax in Spain for the year we left. We were able to reclaim the 3% despite showing a capital gain on paper, because we were able to claim that the property we sold in Spain had in fact been our principle residence, and that we had re-invested the proceeds in our new principle residence in another EU country within the specified time (therby exempting us from CGT).
Hope this helps.
Of course, if you effectively declare yourselves UK residents for 2020, then your purchaser will have to retain 3% from the sale as you will officially be non-resident sellers in Spain. This is actually the choice we made, (easier for us because we did physically & permanently leave in June) because we wanted to avoid having to pay tax in Spain for the year we left. We were able to reclaim the 3% despite showing a capital gain on paper, because we were able to claim that the property we sold in Spain had in fact been our principle residence, and that we had re-invested the proceeds in our new principle residence in another EU country within the specified time (therby exempting us from CGT).
Hope this helps.
Don't worry about what people think, they don't do it very often
"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.
"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.
Re: Leaving spain
Cheers guys that's a lot clearer now thanks.
Who is online
Users browsing this forum: No registered users and 31 guests