Declaration for Tax as a RESIDENT of SPAIN - Page 2

Peter3473 wrote on Tue Feb 2, 2021 11:53am:

Hi Kelvin1960, thank you for your post, I am exactly the same as you, but gaining residency August 2020, I paid non residence tax for year ending 2019 = December 2020, Any idea what type of tax/taxes I should have to pay for tax year 2020 = non resident up to August 2020 and thereafter a resident...

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... = what tax for that 4 month period? reading your post I am liable for resident tax from the 1/1/21 and then February 2022 submit a 720, then submit tax returns for January to December 2021 in June 2022 paying in 2 chunks in June and November 2022, I hope I am correct in reading your post, very helpful, but what to do for the year 2020 as mentioned? thank you, stay safe and healthy my friend.  

Kimmy11 wrote on Mon Jan 4, 2021 11:44pm:

Hi MORF,

I'm fiscally resident in Spain and, as others have said, not complying with Spanish tax law could end up being far more costly.

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The Modelo 720 is a declaration of your worldwide assets - it's for information purposes only and has to be presented during the first quarter (1 January to 31 March) in the year after you first become tax resident in Spain.  The form is divided into three different groups:

Group 1: accounts held abroad where the total balance of all the accounts exceeds €50,000 (balance is not divided between the holders).Group 2: private and works pensions, annuities, investments, shares, bonds, life insurances and other assets held abroad exceeding €50,000 in value.Group 3: property or business premises abroad with a purchase value of €50,000 or more.
Once you've completed your first Modelo 720 (assuming that you have sufficient assets to warrant doing so), you only have to submit another if:
There has been an alteration in your circumstances.Your assets have increased by €20,000 or more of total assets in any of the groups previously declared.Your assets have increased in value to €50,000 or more in a new group not previously declared.

If you're a UK citizen, it's also worth noting that ISA savings, which are tax-free in the UK, are not tax-free in Spain.

Kind regards,
Kim

Kimmy11 wrote on Mon Jan 4, 2021 11:44pm:

Hi MORF,

I'm fiscally resident in Spain and, as others have said, not complying with Spanish tax law could end up being far more costly.

Read more...

The Modelo 720 is a declaration of your worldwide assets - it's for information purposes only and has to be presented during the first quarter (1 January to 31 March) in the year after you first become tax resident in Spain.  The form is divided into three different groups:

Group 1: accounts held abroad where the total balance of all the accounts exceeds €50,000 (balance is not divided between the holders).Group 2: private and works pensions, annuities, investments, shares, bonds, life insurances and other assets held abroad exceeding €50,000 in value.Group 3: property or business premises abroad with a purchase value of €50,000 or more.
Once you've completed your first Modelo 720 (assuming that you have sufficient assets to warrant doing so), you only have to submit another if:
There has been an alteration in your circumstances.Your assets have increased by €20,000 or more of total assets in any of the groups previously declared.Your assets have increased in value to €50,000 or more in a new group not previously declared.

If you're a UK citizen, it's also worth noting that ISA savings, which are tax-free in the UK, are not tax-free in Spain.

Kind regards,
Kim

Mags03169 wrote on Tue Feb 23, 2021 8:29pm:

Hi Kim, we arrived permanently in Spain in September 2020 , when do we have to fill in modelo 720 please ?

Regards,

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Mags

Stevec61 wrote on Tue Feb 23, 2021 8:53pm:

Hi Mags, have a read through the following link, it may be of help to you in understanding the tax laws in Spain?

Mags03169 wrote on Tue Feb 23, 2021 9:40pm:

Hi Steve, thank you but I’m not seeing a link at the moment .

Peter3473 wrote on Tue Feb 2, 2021 11:53am:

Hi Kelvin1960, thank you for your post, I am exactly the same as you, but gaining residency August 2020, I paid non residence tax for year ending 2019 = December 2020, Any idea what type of tax/taxes I should have to pay for tax year 2020 = non resident up to August 2020 and thereafter a resident...

Read more...

... = what tax for that 4 month period? reading your post I am liable for resident tax from the 1/1/21 and then February 2022 submit a 720, then submit tax returns for January to December 2021 in June 2022 paying in 2 chunks in June and November 2022, I hope I am correct in reading your post, very helpful, but what to do for the year 2020 as mentioned? thank you, stay safe and healthy my friend.  

Stevec61 wrote on Tue Feb 23, 2021 10:12pm:

Hi Mags

I thought id sent one on previous e-mail, I'll send it again here - if it doesn't appear then it must have been automatically removed by either the moderator or an automatic task?

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https://www.blevinsfranks.com/news/blevinsfranks/article/spain-modelo-720-deadline-rules-tax-penalties

765 wrote on Wed Feb 24, 2021 12:11pm:

Hello

I have a second home in Spain,i was not made aware of any residency tax that i have to pay,how do i go about paying this tax and also what would the amount be,we purchased our house in Spain may 2017,we also have a property in the U.K. which is our main residence.

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Any help with this would be helpful.

Thankyou

Stevec61 wrote on Wed Feb 24, 2021 2:28pm:

Have you paid any non-resident tax or Suma since your purchased your home on 2017?