My Tax Return

Hi Patrick

You're doing the right thing by asking, as I've never yet seen a tax return that's been prepared properly. (Sorry - I'm not volunteering - too much to do).

A couple of questions - is this your first resident tax return?

If so, have you previously submitted non-resident returns?

The reason for asking is to find out if you're already registered with Agencia Tributaria. If not, then you'll need to do so, or get someone to do it.

I'd also ask if you've read the various posts I've done about residents' tax, giving all the theory apart from actually doing the return.

When the system goes live in a few weeks, I'll be doing returns for Margaret and myself, and from that I intend to post a 'how to' topic, telling you exactly what to do to prepare and submit your return. I could do that based on what the system was for last year, but it changes a bit every year, or has done so far. Last year was a totally new system, and I expect there will be some tweaks to that for this year. What I post won't require any knowledge of the Spanish language.

Even if you get someone else to do it for you, I hope to put you in a position where you'll be able to at least do the calculation yourself, so you'll know if the return's been done properly. With that in mind, I suggest you ask for the bottom line result of a tax return, so you can verify its accuracy,  before allowing that someone else to submit your return.

Hi Jim 

As always your advice is invaluable.    You did give me some good advice after I had sent you details of our income (state pensions) and you figured I probably would not pay tax although this will only be determined after a tax return is submitted.   Unfortunately I seem to have lost that text.     I'm just a bit wary of some accountant saying "you owe 1000 euros"as happened with friends of ours and when they had a friend,a UK trained accountant query it the bill was 150 eurns.    You should charge for all this good advice.   You'd be a milion aire lol

Regards

Patrick

Hi Patrick

I thought I'd done some calculations for you, but couldn't remember for sure. I've just found it:

TaXmas for Residents

As I said above, you need to be registered with Agencia Tributaria. 

When I post about how to do your returns, send me a PM if you want and I'll see if I've got time to help.

In the meantime, get your figures ready. You need to get together totals for all income received in calendar year 2017 (pensions, savings interest, share dividends, premium bond winnings, etc) - and by received I mean when it actually arrived at your bank. For anything not paid into Spain, but received in the UK, you need to apply the exchange rate I've already posted. Keep the government pension figure separate from the rest.

You'll also need a figure for any tax paid in the UK, which means you'll have to wait for the P60 for 2017/2018. You take one-quarter of the 2016/17 P60 tax paid figure, and add three-quarters of the 2017/2018 P60 tax paid figure. You can offset that amount against any tax due in Spain. Obviously, if you didn't pay any tax in the UK, there's no need to wait for the P60.

Hopefully there won't be any tax to pay, but you've got to submit returns for your first year of tax residency. And once the tax returns filter through the system, you'll get prescriptions free instead of paying 10%.

Hi Jim

Many thanks.

Patrick