Tax Residency

Fill in the "Double taxation agreement forms " and send it to HMRC and state that you wish to pay your taxes in Spain. It would be easier tk get an accountant to assist you.

I'm not 100% on tax questions but they gauge where your economic home is by how long you live in your home per year ie 183 days and if your family live in that home too. So if you and your family live together in Spain for a full 183 days (6 months) and that period doesn't necessarily mean in one lump you will be considered Spanish tax residents.  Best get advice from an accountant. 

Bottom line - if you spend 183 days or more in Spain, then you're tax resident here, and not in the UK.

I covered the DTA here:

https://www.costablancaforum.com/area/almorad%C3%AD-spain-11/taxes-suma-nie-tax-advice-in-almorad%C3%AD-25/the-double-taxation-agreement--its-implications-35738/

Many thanks for your help, much appreciated

Many thanks, this has given me something more to consider!

Tax information 

I have lived and worked in Spain since August 2020. When and how do I become a tax resident. I want to get a mortgage but think I need to be a tax resident? 

My work told me I don’t need to do anything until next year- after being in the country 183 days within a tax year. But this doesn’t help with the mortgage situation.

Any information, especially about declaring tax - where and how, appreciated.

Rhanks

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 

Did you apply for residency last year as you should have none?

If not you ('may' as I don't know your position) have overstayed in Spain and are consider an illegal.

I would not rely on assurances of your employer

Hi yes

I have TIE and work for a company who take tax from my wage. But where does it go if I’m supposed to pay it to the UK?

I sold my house in the UK in August 2020 and plan to live here permanently. 

We wanted to get a resident mortgage for the more favourable conditions but doesn’t seem I can without this tax declaration. Will I have to wait for another full year?

Thanks for your help