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Old 27th April 2008, 03:37 PM
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Quote:
Originally Posted by mrypg9 View Post
I said in an earlier post that it's a LHD vehicle. We'll sell it through the UK company we purchased it from so won't lose any more than we would in the UK.
We will continue paying tax in the UK as our income comes entirely from UK investments. We have off-shore euro bank accounts so won't be operating an acount in Spain - at least, I don't see the need for one as yet. Maybe later....
Your information is very helpful - thanks again.
Oh sorry, I read so many posts I missed that

Regret to inform though that after you have been living here for 6 months you will become a Spanish Tax resident and will be liable for taxes here in Spain, not in the UK. Offshore, UK, wherever ... it does not matter. Your taxes will have to be paid in your country of residence, i.e. Spain.

That will include

Income tax: On any income from investments, rents, bonds etc etc
Wealth tax: On your worldwide assets

There are stiff fines for non payment

You can, if you wish, continue paying in the UK but when the Spanish catch up with you (they are actually working with the UK authorities now on this, and actually have exchange staff in each country) they will want their two penneth also .... you wont have to pay twice as there is a reciprocal arrangement, but you may have to pay twice and then reclaim.

It can actually be beneficial to be a tax resident here, especially now the 10p tax rate has gone.
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