Posted: Fri May 5, 2017 4:54pm
I'm always willing to try and help someone who wants to do the job properly.
The transition year when becoming a tax resident can be a bit messy to understand, and without going into details, my recommendation is that you file your first tax return here for 2017.
What you need to do is submit a Modelo 030 to register for tax, and I suggest you do that asap.
Once you've (in twelve months) submitted a tax return here, you can the follow the necessary procedure to get out of the Inland Revenue system. They'll still issue a Notice of Coding, but the code will be NT - no tax (unless you've been in Government employment, in which case that income will still be taxed in the UK, but taken into account in calculating your tax rate here).
For the first tax return, you'll have paid tax in the UK, but this is declared in your Spanish tax return, and the tax paid is offset against the tax due here.
I very strongly suggest that you bring yourself up to speed on the tax system here. I've been doing tax returns for ourselves and for friends for some years. During that time, the friends have given me details of previous tax returns prepared by 'experts', and every one I've seen has been wrong in at least one aspect.
Doing your own tax return is now quite easy. In the early days you used to have to buy a paper 100 from a newsagent and fill it in; or if you wanted to do it online you needed an electronic certificate. However, over the last few years it's got a lot easier. If you've got what I call normal income, in the form of pensions, and annuities and/or savings, there are actually only two boxes on the tax return that you need to enter figures into.
The Spanish Ministry of Finance don't publish the exchange rate to be used for converting sterling to euros. I recently spoke to Agencia Tributaria and they confirmed that one needs to take the average figure for the year, but this isn't published in Spain. For a few years I've been using the average for the year rate published by the European Central Bank, and AEAT agree with this.
As an aside, I do tax returns for friends in exchange for a menu del dia for my wife and myself, and the value of that meal should be declared in my tax return as a payment in kind. For some reason, I always forget to declare it!
I always submit our tax returns as soon as the system goes live early in April, and whilst doing so I do write up of what you need to do and what the relevant AEAT links are. When the time comes, ask and I'll post the procedure.
Also, if you wish to next year send me a PM giving your income details, I can work out the tax that will be due.