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Taxes and residency

Posted: Sat Jan 26, 2019 9:59am
2 replies108 views2 members subscribed
Deborah13

Posts: 81

4 helpful points

Location: Algorfa

Joined: 30 Oct 2017

Every time I travel back and forth to Spain I meet people who are either resident in the UK, with a house they live in for 6 months in Spain, or vice versa. Is there an advantage to residency in one country or another? I understand that Spain taxes 20% of world wide income - but curious about what the advantage would be of being taxed in the UK... 

John56

Posted: Sat Jan 26, 2019 10:16am

John56

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Posts: 2995

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Location: La Zenia

Joined: 7 Jul 2016

Posted: Sat Jan 26, 2019 10:16am

If you are resident in Spain there is not an opt in opt out option, you would be legally and fiscally subject to Spanish laws. Many of the requirements and obligations of Spanish Residencia are explained in Jim Taylor's series of Jims Guides that the Forum Admin Team have grouped together for ease of reference.

Jim's guides - your complete guide to Spain

jimtaylor

Posted: Sat Jan 26, 2019 5:06pm

jimtaylor

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Joined: 2 Feb 2017

Posted: Sat Jan 26, 2019 5:06pm

As John has said, work through my guides. The only way you can legally choose where to be fiscally resident, and which tax regime you come under, its determined by the number of days you spend in Spain.

There isn't a simple answer as to which is the best country to pay tax in, as that it determined by the amount of your income and the taxable categories into which that fits.

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