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Discussion Starter #3
Thanks. Just getting more info on it. Apparently you are correct. Those under €8000 need only register for tax but thereafter do not heed to complete an annual return.

My own income is a Crown pension taxed in UK. I know I must of course register for tax but do I have to complete a return every year even though I have no other income other than this exempt source?
 

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Thanks. Just getting more info on it. Apparently you are correct. Those under €8000 need only register for tax but thereafter do not heed to complete an annual return.

My own income is a Crown pension taxed in UK. I know I must of course register for tax but do I have to complete a return every year even though I have no other income other than this exempt source?
The tax office here insists that one is completed, however they will complete the return.
 

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Discussion Starter #5
That's interesting Hepa as I thought tax rules generally would have been the same across Spain. I live and learn

Filing your Spanish tax return
In the first year of your tax residency, everyone has to make a tax declaration. After the first year, you don’t have to file a return if your income from all sources is under EUR 8,000 and you have less than EUR 1,600 of bank interest or investment income. Furthermore, the same applies if your rental income is less than EUR 1,000 or you earn less than EUR 22,000 as an employee as your income tax will have been deducted at source.
 

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That's interesting Hepa as I thought tax rules generally would have been the same across Spain. I live and learn

Filing your Spanish tax return
In the first year of your tax residency, everyone has to make a tax declaration. After the first year, you don’t have to file a return if your income from all sources is under EUR 8,000 and you have less than EUR 1,600 of bank interest or investment income. Furthermore, the same applies if your rental income is less than EUR 1,000 or you earn less than EUR 22,000 as an employee as your income tax will have been deducted at source.
They probably are the same,It is my financial situation that differs from the margins stated so I have to complete. I too have a U.K. govt pension taxed at source, which I have always had to declare.

Strangely now I no longer have to complete a U.K. tax return.
 

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That's interesting Hepa as I thought tax rules generally would have been the same across Spain. I live and learn

Filing your Spanish tax return
In the first year of your tax residency, everyone has to make a tax declaration. After the first year, you don’t have to file a return if your income from all sources is under EUR 8,000 and you have less than EUR 1,600 of bank interest or investment income. Furthermore, the same applies if your rental income is less than EUR 1,000 or you earn less than EUR 22,000 as an employee as your income tax will have been deducted at source.
The advice I would give is to submit a return every year (needn't cost you a cent). The main reasons are for future IHT. One needs to be a five year tax resident to claim the best relief's, and to send a tax return annually albeit resulting in nil due, would be the best way forward.
 

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Discussion Starter #9
Sound advice. I reckon I need to man up, cease being so lazy and fill a form in each year. Thanks, much appreciated
 

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You really need to be careful when you are looking for stuff in the net, as a lot of it is out of date and old.

So, for example, the article you linked is dated May 2013, yet the limit it quotes -€8,000 - was the limit up to 31st December 2006. It changed on 1st January 2007 to €11,200, and again on the 1st January 2015 to €12,000.

Having said that I would endorse Snikpohs comment about submitting a return each year, even if it is a nil return. It is easy to submit your own return.
 

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Discussion Starter #11
Thanks for that. So the amount that can be earned without the need for annual returns is now €12000- even better.
 

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Two more good reasons for doing a tax return:

If you are a pensioner using the Spanish healthcare system, and you need regular medicines, there will be no monthly limit or discount on prescription charges unless you have done a tax return. For example if your income is less than €18k a month you get a 90% discount, capped at €8 per month.

If you are on a low income below the threshold, and have a Spanish bank account that pays interest, they will refund the tax withheld on the interest.

In addition, though this may be just rumour, I've heard that not having a Spanish tax record can cause problems if you sell your house and return to the UK.
 

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Thanks folks.

Just got a bit more info from /SNIP/

Bottom line is for a situ like mine- ie only income is from an exempt source (UK Crown Pension) because its subject to the double taxation agreement I MUST submit a return each year even though its a " nil" return and even though my circumstances will not have changed

After receiving the excellent advice on here as to the benefit of submitting a return I had decided to submit one regardless of whether it was mandatory.

Thanks again folks
 

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For example if your income is less than €18k a month you get a 90% discount, capped at €8 per month.
Wow, that's some income!



Thanks folks.

Just got a bit more info from /SNIP/

Bottom line is for a situ like mine- ie only income is from an exempt source (UK Crown Pension) because its subject to the double taxation agreement I MUST submit a return each year even though its a " nil" return and even though my circumstances will not have changed

After receiving the excellent advice on here as to the benefit of submitting a return I had decided to submit one regardless of whether it was mandatory.

Thanks again folks
This has already been mentioned on here even before you went to the other 'people'. However, the jury is still out as to whether it applies to this tax year or next. Even Spanish tax advisers are not sure.

As you say though, there are so many reasons for doing it and I can't think of one for not doing it - so, simples!!
 

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Discussion Starter #15
Yes I reckon it is the right way to go and I thank you for offering to fill it in for me

( I sometimes read things between the lines which aren't really there!!!)
 

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The way to (almost) guarantee a correct answer about tax problems is by going to the tax offices directly. Arrange a meeting and get them to write it down for you.
If you don't have good enough Spanish, invest some money and get a translator.
The Spanish Citizens Advice Bureau, if it's the one I'm thinking of, isn't an official body.
 

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Thanks folks.

Just got a bit more info from /SNIP/

Bottom line is for a situ like mine- ie only income is from an exempt source (UK Crown Pension) because its subject to the double taxation agreement I MUST submit a return each year even though its a " nil" return and even though my circumstances will not have changed

After receiving the excellent advice on here as to the benefit of submitting a return I had decided to submit one regardless of whether it was mandatory.

Thanks again folks
why would advice on another forum be any better than on here? (that's what I snipped from your post ) I do believe, as snikpoh says, that's the advice given on here

yes it's certainly best to submit one every year regardless - & as Pesky says, the best place for advice would be the Hacienda office
 

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Discussion Starter #18
Ahh wasn't just the advice.

They didn't just answer my tax query- they offered to fill in my form, pay my tax for me, bring me to Javea for the day and pick up my bar tab.

What a forum!!!
 

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Ahh wasn't just the advice.

They didn't just answer my tax query- they offered to fill in my form, pay my tax for me, bring me to Javea for the day and pick up my bar tab.

What a forum!!!
Perhaps you should stick with that forum then!:D
:bolt:
 
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