Posted: Sun May 9, 2021 11:55pm
Hi Sharon,
If you've been living and working in Spain since August 2020, I assume you have legal residency, i.e. a TIE? Also, if you're working, do you have a contract with your employer, or are you "autonomo" (self-employed)? In either of these cases, you would already be paying into the Spanish social security system, paying tax and national insurance contributions.
If you are working casually, without a contract, or even if you were not working at all, you become tax resident in Spain once you have lived here for 183 days or more in each tax year - in Spain, the tax year runs from 1 January to 31 December - and you must declare all your worldwide assets and income in Spain.
As you didn't move to Spain until August last year, you would be considered tax resident in your former location (UK?) for 2020, but as you exceeded 90 days in Spain last year, you would have to pay Non-resident tax by the deadline of end December 2021. If it's your intention to remain permanently in Spain, you will become tax resident this year and will have to submit your first Resident tax return, in respect of 2021, no later than the deadline of end June 2022.
The documentation required for a mortgage application in Spain does include your latest tax return, but some financial institutions do lend to Non-residents (usually with greater conditions), so I don't believe a Resident's tax return would necessarily be required, although a Non-resident tax return would be required as a minimum; additional requirements may vary from one financial institution to another.
Kind regards,
Kim