Join the La Marina forum
My name's Alex and this is my website all about La Marina in Spain. Register now for free to talk about Introduce yourselves in La Marina and much more!
Posted: Tue Aug 18, 2020 11:46am
Legendary helpful member
nicholajames1 wrote on Tue Aug 18, 2020 11:29am:
Hi
We won't be working, we will be retired.
Read more...
Thanks
Nic
Hi Nic,
I'm not working either, but I still have to submit a tax return each year. I assume you guys have some form of income, or sufficient savings in order to qualify for residency? I appreciate you may not want to discuss your personal circumstances on an open forum, but if you would like to discuss in more detail, please don't hesitate to Private Message me.
Kind regards,
Kim
Posted: Tue Aug 18, 2020 12:08pm
Kimmy11 wrote on Tue Aug 18, 2020 11:46am:
Hi Nic,
I'm not working either, but I still have to submit a tax return each year. I assume you guys have some form of income, or sufficient savings in order to qualify for residency? I appreciate you may not want to discuss your personal circumstances on an open forum, but if you would ...
Read more...
...like to discuss in more detail, please don't hesitate to Private Message me.
Kind regards,
Kim
Hi Kim
Yes we have private pensions and savings, we would also have income from rental properties. Would we pay tax on that please?
Thanks
Nic
Posted: Tue Aug 18, 2020 12:39pm
Legendary helpful member
nicholajames1 wrote on Tue Aug 18, 2020 11:29am:
Hi
We won't be working, we will be retired.
Read more...
Thanks
Nic
Whatever your income, you will have to submit a tax return for your first year of fiscal residency, even if no tax is due.
If you have income in the form of interest on savings from which UK tax is presently deducted, you will be entitled to have that income paid gross.
All covered in my tax guides.
Posted: Tue Aug 18, 2020 12:47pm
jimtaylor wrote on Tue Aug 18, 2020 12:39pm:
Whatever your income, you will have to submit a tax return for your first year of fiscal residency, even if no tax is due.
If you have income in the form of interest on savings from which UK tax is presently deducted, you will be entitled to have that income paid gross.
Read more...
All covered in my tax guides.
OK thank you Jim I understand now.
Cheers
Nic
Posted: Tue Aug 18, 2020 1:23pm
Very helpful member
nicholajames1 wrote on Tue Aug 18, 2020 12:08pm:
Hi Kim
Yes we have private pensions and savings, we would also have income from rental properties. Would we pay tax on that please?
Read more...
Thanks
Nic
Presumably any monies accrued via rental income (even in the UK) would also have to be declared & appropriate taxation paid in Spain if you are legally registered as a permanent resident, unless I'm mistaken?
Or would the tax be liability rest in the UK?
Advertisement - posts continue below
Posted: Tue Aug 18, 2020 1:44pm
Legendary helpful member
Stan Bartolome wrote on Tue Aug 18, 2020 1:23pm:
Presumably any monies accrued via rental income (even in the UK) would also have to be declared & appropriate taxation paid in Spain if you are legally registered as a permanent resident, unless I'm mistaken?
Or would the tax be liability rest in the UK?
Initially, tax would be paid in the UK, as normal. One would also be taxable in Spain for rental income in the UK, but tax paid in the UK could be deducted from any tax due in Spain.
Once a first tax return has been submitted here, one can apply to HMRC to be treated as a non-resident landlord, and the rental income would only be taxed in Spain.
If UK rental properties are unlet at any time, there is a liability here for 'imputed' tax on those UK properties.
Posted: Tue Aug 18, 2020 1:51pm
Very helpful member
jimtaylor wrote on Tue Aug 18, 2020 1:44pm:
Initially, tax would be paid in the UK, as normal. One would also be taxable in Spain for rental income in the UK, but tax paid in the UK could be deducted from any tax due in Spain.
Once a first tax return has been submitted here, one can apply to HMRC to be treated as a non-resident landlord, and the rental income would only be taxed in Spain....
Read more...
...
If UK rental properties are unlet at any time, there is a liability here for 'imputed' tax on those UK properties.
Cheers, Ray...as ever.
So I was right then? Any earnings from rental properties in the UK would be taxable in Spain.
I asked this as the OP appeared to think they wouldn't be liable, given one of their earlier responses to another poster.
Unless, of course, they're planning on paying all their tax in the UK, hence why I wondered where this left them liability-wise with the Spanish authorities, given that it's a legal requirement for gaining perm resident status to be registered for tax in Spain.
Dave
Posted: Tue Aug 18, 2020 2:12pm
Legendary helpful member
Stan Bartolome wrote on Tue Aug 18, 2020 1:51pm:
Cheers, Ray...as ever.
So I was right then? Any earnings from rental properties in the UK would be taxable in Spain.
Read more...
I asked this as the OP appeared to think they wouldn't be liable, given one of their earlier responses to another poster.
Unless, of course, they're planning on paying all their tax in the UK, hence why I wondered where this left them liability-wise with the Spanish authorities, given that it's a legal requirement for gaining perm resident status to be registered for tax in Spain.
Dave
Ray?
A resident in Spain is taxable on his worldwide income. The only form of income that is exempt from direct taxation here is a pension in respect of UK government employment, and even that has to be declared here.
The rules are all set out in the double taxation treaty but, the way that is written, it gives the tax authorities in both the UK and Spain the opportunity to get their sticky fingers on several forms of income.
Posted: Tue Aug 18, 2020 2:32pm
Stan Bartolome wrote on Tue Aug 18, 2020 1:23pm:
Presumably any monies accrued via rental income (even in the UK) would also have to be declared & appropriate taxation paid in Spain if you are legally registered as a permanent resident, unless I'm mistaken?
Or would the tax be liability rest in the UK?
Yes I think you are right there Kim. I think it would have to declare it to the Spanish tax authorities.
Posted: Tue Aug 18, 2020 2:35pm
jimtaylor wrote on Tue Aug 18, 2020 1:44pm:
Initially, tax would be paid in the UK, as normal. One would also be taxable in Spain for rental income in the UK, but tax paid in the UK could be deducted from any tax due in Spain.
Once a first tax return has been submitted here, one can apply to HMRC to be treated as a non-resident landlord, and the rental income would only be taxed in Spain....
Read more...
...
If UK rental properties are unlet at any time, there is a liability here for 'imputed' tax on those UK properties.
That you Jim that's very informative. It's a lot to take in 👍
Find more Introduce yourselves topics from a particular area:
Or view all Introduce yourselves topics in all of Costa Blanca.
