To register or not to register this is the question!

[Buzy Bee]

Hi Everbody

Any advice on this topic would be very helpful:

1. We moved to Spain in Nov 05 but actually got our residency card in March 04 so it is due to run out.
2. We do not own any property in UK but have savings and pension income taxed over there.
3. We intend to move back to UK in next 2 years when we can sell up.
4. We have never registered for tax in Spain believing the double taxation covered us (but now we know different).
5. We have owned a house here since 2004 although it is not registered yet due to planning probelms!!!!

Is it better to get a brand new residency certificate or just renew it? and will this cause us any problems if we sell our Spanish home later?
Trying to do the right thing is proving to be impossible as we cannot even be put on the padron at the moment.

[Stravinsky]

Originally Posted by Buzy Bee

Hi Everbody

Any advice on this topic would be very helpful:

1. We moved to Spain in Nov 05 but actually got our residency card in March 04 so it is due to run out.
2. We do not own any property in UK but have savings and pension income taxed over there.
3. We intend to move back to UK in next 2 years when we can sell up.
4. We have never registered for tax in Spain believing the double taxation covered us (but now we know different).
5. We have owned a house here since 2004 although it is not registered yet due to planning probelms!!!!

Is it better to get a brand new residency certificate or just renew it? and will this cause us any problems if we sell our Spanish home later?
Trying to do the right thing is proving to be impossible as we cannot even be put on the padron at the moment.

Wont you have to show your NIE & passport if you register again ..... in which case they will know who you are immediately.

I cant give you any info that would be against the law on here, but you obviously know your pension & income should have been taxed here ..... do you know that you can earn up to about €13k as a couple before you are taxed here - dont suppose your pension is a Civil Service Public one is it?

When you come to sell the property the authorities will want proof that you have been residents ..... is there a possibility the house will be made legal eventually?

[Buzy Bee]

Hi, Yes it is a public service pension and has to be taxed in the UK, we have a residents bank acct as well. My partner does not have any income.
There is a chance that we will get the house legal within the next year (hopefully) what would we need to provide to prove we have been resident and do you think it will cause us any problems regarding tax as this is our main home we do not have any other homes in UK or Spain. I don't want anybody to think we are trying to be avasive but if we are notliable for taxes (as we pay it in the UK) why do we need to go to all the bother of registering.
My email address is: simpsonvalerie@hotmail.co.uk if you can send me anyinfo thathelpsI would really appreciate it.
Regards
Val

[Stravinsky]

Originally Posted by Buzy Bee

Hi, Yes it is a public service pension and has to be taxed in the UK, we have a residents bank acct as well. My partner does not have any income.
There is a chance that we will get the house legal within the next year (hopefully) what would we need to provide to prove we have been resident and do you think it will cause us any problems regarding tax as this is our main home we do not have any other homes in UK or Spain. I don't want anybody to think we are trying to be avasive but if we are notliable for taxes (as we pay it in the UK) why do we need to go to all the bother of registering.
My email address is: simpsonvalerie@hotmail.co.uk if you can send me anyinfo thathelpsI would really appreciate it.
Regards
Val

Well you can put in a nil tax return here, which shows beyond doubt that you have been a tax resident here. Your PS pension is taxed in the UK so you can ignore that anyway, so you shouldn't have a tax resident. When you sell your home, as a non resident tax will be witheld. CGT however is the same now for residents or non residents since Spain was taken to task over the different rates.

Its up to you really. In law you should be declaring for tax here. You may not be able to sell for many years, who knows. Being a non resident living full time in Spain may cause a problem when you come to sell ........ it may not I'd rather personally to be on the right side of the law

[chris(madrid)]

Originally Posted by Buzy Bee

I don't want anybody to think we are trying to be avasive but if we are notliable for taxes (as we pay it in the UK) why do we need to go to all the bother of registering.

Basically - because it's the law.