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Originally Posted by premieji
Hi - We’ve lived in Spain for 2.5 years now. We rent out 2 houses in UK and rent here in Spain - we need advice on UK/Spanish tax and residency issues related to staying here in Spain, becoming fiscally resident and continuing to live on the rental income from our houses in UK - or selling one UK house to buy in Spain. Can anyone recommend a good UK/Spanish tax specialist (preferably near Torrox/Nerja) who won’t charge an arm and a leg up front? We need advice on the best timing, and the most tax efficient ways re income and capital gains for either option. Thanks in advance.
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Hate to tell you this premieji, but you have been a fiscal tax resident of Spain for roughly 2 years by the sounds of it, and have been subject to the Spanish tax system for that time. You are legally bound nowadays to gain a residents certificate within 30 days of arriving here to reside ... this law came into being last March.
So you will be liable for back taxes, maybe fines, you need to talk to a Gestoria who is expert in tax laws, try to avoid using a solicitor. Our Gestoria charges about €60 a year for our tax return. Ypu may now have an issue with double taxation, but have a word with the gestoria and you will probably be able to reclaim it when you make your Spanish returns ..... which are due in May I believe.
You will be liable for:
Income tax on your worldwide income from stocks, shares, property, pensions, etc.
Wealth Tax ... a tax on your worldwide assets including your overseas properties. Good news is that there are quite good allowances on the wealth tax ... for a couple it can be up to €450,000 before tax.
Mortgages are deductable.
And if you sell your property in the UK, as you probably already know, because they are not your principal residence you have to pay CGT.
Sorry I cant recommend anyone down there, but if you google Gestoria Nerja you'll come up with some contacts.