Posted: Fri Jul 23, 2021 12:02am
Yes. The non-double-taxation treaty endures.
BUT ... it applies to income tax, not completely to CGT. We recently sold a UK rental property. We declared/paid CGT to HMRC. We also declared to Spain; we had to pay the Spanish CGT (with the value previously paid to the UK deducted).
Also ... beware ... there is a period of double taxation to be planned for. If (as an example from above) you become tax-Resident on 1/1/23, you will submit your modelo 720 form in Feb 24. In June 24 you will submit your income tax return for Jan-Dec 23. You will pay your 2023 tax in 2 chunks ... June/early July and November 2024. BUT you carry on paying UK tax PAYE.
In Sept 2024 you will be able to submit forms to the Spanish tax authorities (2 identical forms, one in English, one in Spanish). They will check your tax status and then issue you a certificate. You send the certificate and the English version of the form to HMRC, who will zero-rate your tax code and reimburse tax paid in the UK since 1/1/23. This may not complete until 2025, so you will have >2 years of double taxation to deal with.
https://www.gov.uk/government/publications/double-taxation-united-kingdomspain-si-1976-number-1919-form-spain-individual
Some forms of income remain taxable in the UK (Crown Pensions - military, Civil Service, Police, Local Authority, some nurses, etc.) but must still be reported in Spain.