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Tax situation

Posted: Sun Jun 5, 2022 7:08pm
7 replies307 views7 members subscribed
Marie71

Posts: 3

Location: Altea

Joined: 15 May 2022

I am a retiree from the UK and have lived in Spain for over 5 years and am living in Altea.  I have an NIE number and have told the tax authorities that I am a UK resident and use my son's UK address for tax purposes as I want to preserve the advantage of my UK state pension which increases with inflation.  Is this allowed and could I be prosecuted for tax avoidance by the Spanish tax authorities?  Any advice would be helpful, thank you

tebo53

Posted: Sun Jun 5, 2022 7:15pm

tebo53

Legendary helpful member

Posts: 4829

5031 helpful points

Location: Benidorm

Joined: 29 May 2018

Posted: Sun Jun 5, 2022 7:15pm

Marie71 wrote on Sun Jun 5, 2022 7:08pm:

I am a retiree from the UK and have lived in Spain for over 5 years and am living in Altea.  I have an NIE number and have told the tax authorities that I am a UK resident and use my son's UK address for tax purposes as I want to preserve the advantage of my UK state pension which increases ...

...with inflation.  Is this allowed and could I be prosecuted for tax avoidance by the Spanish tax authorities?  Any advice would be helpful, thank you

Hi,

You will get all the rises in your uk government pension here in Spain. I have had all the increases in all the 8 years living here in Benidorm. 

You need desperately to get your tax situation sorted immediately. You should be paying your taxes here in Spain. You can get dual taxation forms so you don't pay taxes in both countries. You may owe some back taxes. If the authorities find out you may be in serious trouble.

Steve

Aikidoamigo

Posted: Sun Jun 5, 2022 7:17pm

Aikidoamigo

Helpful member

Posts: 463

296 helpful points

Joined: 3 Apr 2022

Posted: Sun Jun 5, 2022 7:17pm

How are you now staying more than 90 days as a non resident? 

I would not only worry about tax but also immigration 🥺

Marie71

Posted: Sun Jun 5, 2022 8:26pm

Marie71

Original Poster

Posts: 3

Location: Altea

Joined: 15 May 2022

Posted: Sun Jun 5, 2022 8:26pm

tebo53 wrote on Sun Jun 5, 2022 7:15pm:

Hi,

You will get all the rises in your uk government pension here in Spain. I have had all the increases in all the 8 years living here in Benidorm. 

You need desperately to get your tax situation sorted immediately. You should be paying your taxes here in Spain. You can get dual taxation forms so you don't pay taxes in both countries. You may owe some back taxes. If the authorities find out you may be in serious trouble.

Steve

Thank you so much for your reply when I get dual taxation forms and I pay taxes in Spain only how will I still get British state pension increases?  I understood paying taxes in Spain would mean British state pension increases would not be paid to me. I must look into my immigration status also. 

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tebo53

Posted: Sun Jun 5, 2022 8:37pm

tebo53

Legendary helpful member

Posts: 4829

5031 helpful points

Location: Benidorm

Joined: 29 May 2018

Posted: Sun Jun 5, 2022 8:37pm

Marie71 wrote on Sun Jun 5, 2022 8:26pm:

Thank you so much for your reply when I get dual taxation forms and I pay taxes in Spain only how will I still get British state pension increases?  I understood paying taxes in Spain would mean British state pension increases would not be paid to me. I must look into my immigration status a...

...lso. 

I have been a full resident in Spain for 8 years and paid my taxes to the Spanish tax man for about 8 years too. I do not pay a penny tax to HMRC. 

I and you will get the UK government pension increases every year, trust me.....

I got the full 3.5% pension increase in April as did my wife.

You might find that you will need to apply for a non lucrative visa and meet the income and healthcare requirements to be able to continue to live in Spain. 

Steve 

Marie71

Posted: Sun Jun 5, 2022 9:49pm

Marie71

Original Poster

Posts: 3

Location: Altea

Joined: 15 May 2022

Posted: Sun Jun 5, 2022 9:49pm

tebo53 wrote on Sun Jun 5, 2022 8:37pm:

I have been a full resident in Spain for 8 years and paid my taxes to the Spanish tax man for about 8 years too. I do not pay a penny tax to HMRC. 

I and you will get the UK government pension increases every year, trust me.....

I got the full 3.5% pension increase in April as did my wife.

You might find that you will need to apply for a non lucrative visa and meet the income and healthcare requirements to be able to continue to live in Spain. 

Steve 

Dear Steve,

Thank you  so much you have helped me understand my tax problem. I will now definitely do something about my precarious situation.

Marie

Kelvin1960

Posted: Tue Jun 7, 2022 3:19pm

Kelvin1960

Super helpful member

Posts: 1486

1769 helpful points

Joined: 5 Mar 2017

Posted: Tue Jun 7, 2022 3:19pm

You need to think seriously. You are in peril. You need legal advice.

If you seek Residency now, the Spanish authorities can seek back-tax from you.

You might not have sufficient qualifying income for a visa application, in which case you might be forced to leave Spain.

Bsbrokers

Posted: Mon Jun 13, 2022 1:12am

Posts: 51

9 helpful points

Location: Altea

Joined: 1 Aug 2019

Posted: Mon Jun 13, 2022 1:12am

You can have your UK pensions paid anywhere in the world other than Sanctioned nations. The terms of your pension are the terms and increases if part of it cant be denied because of where you are residing.

As others have said sort your tax and residency issues out as quickly as possible to avoid much worse trouble.

Alan

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