Spanish Tax on UK Employment Income

[chris(madrid)]

Originally Posted by covfan71

I thought you had to have a spanish bank account and NIE number in order to pay bills etc.

You only need the account if you wish to pay by DD.

Many small town halls go one futher - and road tax is a LOCAL TAX. They insist on a bank in the same town.

The bill will be sent to your SPANISH address (so they'll know where you are!) and just about EVERY SPANISH DATABASE is indexed on DNI/NIE as it's UNIQUE

You can escape the bank bit by paying cash naturally - but woe betide you if you're late paying.

[crookesey]

Originally Posted by Stravinsky

Well in theory a Spanish resident cannot drive a UK plated car, because as a Spanish resident you should be matriculating it.

To register our Spanish car in our name we had to produce (this was 12 months ago) our Padron, NIE, passport, and now I have been told people are often being asked for your residence certificate also.

As time goes on, more and more things will require you to produce your resident certificate, and that hopefully will go a long way to flushing out the illegals here.

You have hit the nail firmly on the head as some members of this forum are making me feel like a potential 'illegal'.

I am very familiar with the UK taxation system and am happy to remain within its perimeters, I am not some kind of 'Jack The Lad' who wants to come over and abuse the Spanish taxation system. In the UK I am able to move investment income between my wife and myself in order to utilise all of our tax allowances. I am also familiar with the taxation rules applicable to both on shore and off shore bonds.

One poster intimated that Barclays had been ordered to supply the UK Revenue with details of their clients off shore investments. If this were so there would be no off shore investment houses, Gordon Brown attempted such a move in respect of Isle of Man accounts back in 1997 but was told to go forth and multiply. However all withdrawals that are brought back on shore with the exception of 5% of capital withdrawals per annum in respect of bonds are liable to taxation.

There is also much ambiguity between forum members on the simple matter of car ownership. Are all the car store companies scattered around Spanish airports housing illegally owned Spanish registered vehicles? I think not.

So why would the Spanish authorities not want us in their country? We would pay taxes on the purchase of a property and everything associated with it. We would pay rates, VAT on everything that we purchase and most probably employ Spanish people to maintain our home and service and repair our car etc; etc. I wager that we will bring more into the Spanish economy than some so called legals.

If we have to leave Spain every 182 days to prove that we are not residents then so be it. We will simply book into a hotel in Gibraltar or Portugal for the prescribed period of absence and retain our bill as proof of us leaving Spain.

We are not Colombian drug runners, just a couple of UK pensioners wishing to get out of this over governed hell hole and live out the remaining years of our lives in an area of Spain that we are comfortable with.

[felix]

Hi Ellan
There is no change for the time being so the level is still 60.100 euros

Section 7.p of 35/2006 of General Income Tax Act IRPF and Section 6 of the Regulations of the Personal Income Tax Real Decreto 439/2007 provide rules about this exemption

[Stravinsky]

Originally Posted by crookesey

There is also much ambiguity between forum members on the simple matter of car ownership. Are all the car store companies scattered around Spanish airports housing illegally owned Spanish registered vehicles? I think not.

If we have to leave Spain every 182 days to prove that we are not residents then so be it. We will simply book into a hotel in Gibraltar or Portugal for the prescribed period of absence and retain our bill as proof of us leaving Spain.

We are not Colombian drug runners, just a couple of UK pensioners wishing to get out of this over governed hell hole and live out the remaining years of our lives in an area of Spain that we are comfortable with.

I just tell you the laws as we have discovered them on the gound here Crookesey, from my solicitor, from people who have gone through the system, and from my gestoria.

As I said to someone on another forum, people can either choose to adhere to the laws of the land they reside in, or they can choose to live outside those laws. Its their choice, as long as it doesn't effect me. Car laws effect me, and thats why I am vocal about it

I say it again .... forget 183 days. Thats fiscal residency talk. If you come to Spain to reside then you are required to register as a resident within either 30 or 60 days, depending on which version you prefer of it

The Spanish Police are not stupid. The days of running over the border for a fuel receipt are long gone.

[Ellan_Vannin]

Originally Posted by felix

Hi Ellan
There is no change for the time being so the level is still 60.100 euros

Section 7.p of 35/2006 of General Income Tax Act IRPF and Section 6 of the Regulations of the Personal Income Tax Real Decreto 439/2007 provide rules about this exemption

Hi Felix,

Thanks very much for your reply and the info, I was beginning to think that this thread had been hijacked!

[Big Pete]

Originally Posted by crookesey

You have hit the nail firmly on the head as some members of this forum are making me feel like a potential 'illegal'.

I am very familiar with the UK taxation system and am happy to remain within its perimeters, I am not some kind of 'Jack The Lad' who wants to come over and abuse the Spanish taxation system. In the UK I am able to move investment income between my wife and myself in order to utilise all of our tax allowances. I am also familiar with the taxation rules applicable to both on shore and off shore bonds.

One poster intimated that Barclays had been ordered to supply the UK Revenue with details of their clients off shore investments. If this were so there would be no off shore investment houses, Gordon Brown attempted such a move in respect of Isle of Man accounts back in 1997 but was told to go forth and multiply. However all withdrawals that are brought back on shore with the exception of 5% of capital withdrawals per annum in respect of bonds are liable to taxation.

There is also much ambiguity between forum members on the simple matter of car ownership. Are all the car store companies scattered around Spanish airports housing illegally owned Spanish registered vehicles? I think not.

So why would the Spanish authorities not want us in their country? We would pay taxes on the purchase of a property and everything associated with it. We would pay rates, VAT on everything that we purchase and most probably employ Spanish people to maintain our home and service and repair our car etc; etc. I wager that we will bring more into the Spanish economy than some so called legals.

If we have to leave Spain every 182 days to prove that we are not residents then so be it. We will simply book into a hotel in Gibraltar or Portugal for the prescribed period of absence and retain our bill as proof of us leaving Spain.

We are not Colombian drug runners, just a couple of UK pensioners wishing to get out of this over governed hell hole and live out the remaining years of our lives in an area of Spain that we are comfortable with.

Good on you , well put

he he hell hole

[Ellan_Vannin]

Originally Posted by crookesey

If we have to leave Spain every 182 days to prove that we are not residents then so be it. We will simply book into a hotel in Gibraltar or Portugal for the prescribed period of absence and retain our bill as proof of us leaving Spain.

The 183 day rule is for a calandar year i.e 1 January to 31st of December and doesn't have to be consecutive days. Temporary days absences from Spain can be ignored unless it can be proved that the individual has an habitual residence in another country for more than 183 days of the year.

EV

[felix]

Individuals are deemed to be residents in Spain when they are under any of the following circumstances:
• They remain in Spain for more than 183 days during a complete tax year (i.e. 1 January to 31 December). In order to determine the period of stay, sporadic absences are taken in the count, except those where the tax residence in another country is proved. In the case of countries or territories considered as tax havens, the Tax Administration can demand proof of stay in that 'tax haven' over a period of 183 days in a calendar year.
• Their main base or centre of activities or economic interests is, directly or indirectly, in Spain. Also, it is presumed, except if proved otherwise, that a taxpayer has his tax residence in Spain when, using the above criteria, his spouse -not legally separated- and underage dependent children are permanent residents in Spain.
An individual will be considered either as resident or nonresident for the whole calendar year, because a change of residency does not
interrupt the taxable period.
Accreditation of fiscal residence
Tax residence is proved by a certificate issued by the competent Tax Authority of the country concerned. The period of validity of
these certificates is one year. A person may have a residence permit or administrative residence in a State and not be considered a resident therein for tax purposes.

[covfan71]

Can someone answer me this then I plan to move to Spain next year and declare as a resident. I may well have to go back to UK once a month to work as it's a better wage back home. As i understand it my wage will be taxed in UK but What taxes will i have to pay in Spain?

[Stravinsky]

Originally Posted by covfan71

Can someone answer me this then I plan to move to Spain next year and declare as a resident. I may well have to go back to UK once a month to work as it's a better wage back home. As i understand it my wage will be taxed in UK but What taxes will i have to pay in Spain?

What do you mean by "once a month" (a couple of days, a month?) and when you mean work do you mean building, teaching, i.e. self employed or contracted