Posted: Tue Feb 2, 2021 4:15pm
Hi Linda,
The Spanish tax year runs from 1 January to 31 December. As you moved permanently to Spain in February 2020, you were living here for at least 183 days (6 months + 1 day) last year, which is the point at which you become tax resident in Spain, irrespective of whether you have formalised your Spanish residency.
On this basis, you will need to complete a Modelo 720 Declaration of (global) Assets, i.e. your assets outside of Spain, by the end of February this year and submit your first Modelo 100 Tax return by end June this year.
Your Modelo 720 will include your UK property because you still owned it last January, when the 2020 Spanish tax year had started and for which you became tax resident. (If you'd moved permanently to Spain in the second half of last year, you would have been here for less than 183 days and, therefore, would not have been tax resident in 2020.)
Your advisor is asking for your Deeds to see when you bought the UK property and how much you paid for it. If I remember correctly, the UK stopped issuing paper Deeds about 6 years ago, but you should be able to download the information from the UK land registry, or provide a copy of your solicitor's completion statement following your purchase. Similarly, your advisor will want proof of how much you sold the property for, in order to calculate the capital gain; again, your solicitor's completion statement following the sale should suffice. However, there are a number of things that can be offset from the 'profit' you've made, such as your legal costs, so your tax advisor should be asking you for that information too.
Kind regards,
Kim
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