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Tax advisors in Playa Flamenca/La Zenia

Posted: Thu Feb 23, 2023 11:04am
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Hi,

We are in the final process of obtaining our NLV, awaiting pick up of NIE card at Alicante.

We are therefore looking for recommendations for Tax Advisors near Playa Flamenca. Has anyone used Cove down by Surfers?

I`m aware we don`t become tax residents until 183 day after arrival in Spain(14/11/22) but I`d like to engage a company now as I have a few questions.

Main question: If I take a tax free lump sum from a UK pension within my 183 days will I be exempt from Spanish tax..

If after I become a Spanish tax resident would I still pay tax on a tax free amount from my UK pension if I took the amount next year.

TIA

Posted: Thu Feb 23, 2023 3:27pm

jimbo1234

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Posted: Thu Feb 23, 2023 3:27pm

Spanish Solutions La Zenia do multiple services. Haven't used them for Tax but found them reasonable and efficient on other matters. Website at 

https://www.spanishsolutions.net/

Posted: Thu Feb 23, 2023 4:17pm

Herefordjack

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Posted: Thu Feb 23, 2023 4:17pm

I think you have a misapprehension about when you become tax resident. First of all, the Spanish tax year is the calendar year, not April to March as in the UK.

If your first arrival date is in the second half of a calendar year, you are not classed as tax resident in that year. You are tax resident from 1st of Jan of the following year. All of your income from that date onwards has to be declared to the Spanish tax authority.

So if I'm reading your post correctly and you arrived in November 2022, you are tax resident from January 1st this year.

Posted: Thu Feb 23, 2023 8:52pm

Darro

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Posted: Thu Feb 23, 2023 8:52pm

Jack is correct but to put it another way, as you were resident on Jan 1st 2023 you will be submitting your first tax return in 2024 and in it declaring ALL income received during the year 2023-24.
To have avoided tax on a lump sum you should have taken it before Jan 1st.Don't forget your Modelo 720 which needs to be done by the end of March this year!

Posted: Thu Feb 23, 2023 9:29pm

Herefordjack

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Posted: Thu Feb 23, 2023 9:29pm

Darro wrote on Thu Feb 23, 2023 8:52pm:

Jack is correct but to put it another way, as you were resident on Jan 1st 2023 you will be submitting your first tax return in 2024 and in it declaring ALL income received during the year 2023-24.
To have avoided tax on a lump sum you should have taken it before Jan 1st.Don't forget your Modelo...
 

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... 720 which needs to be done by the end of March this year!

Slightly misleading, Darro, if you don't mind me saying. He won't be declaring all income for 2023-24 in his first return, 2023-24 is incorrect terminology and doesn't mean anything.

The tax return to be made in 2024 will list all income in 2023 (and only 2023).

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Posted: Fri Feb 24, 2023 7:05am

the ashes 40

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Posted: Fri Feb 24, 2023 7:05am

Speak to Manuel at Cove, very knowledgable and speaks perfect English. Very reasonably priced. 

Posted: Fri Feb 24, 2023 8:44am

Darro

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Posted: Fri Feb 24, 2023 8:44am

Herefordjack wrote on Thu Feb 23, 2023 9:29pm:

Slightly misleading, Darro, if you don't mind me saying. He won't be declaring all income for 2023-24 in his first return, 2023-24 is incorrect terminology and doesn't mean anything.

The tax return to be made in 2024 will list all income in 2023 (and only 2023).


I don't mind you saying but I don't get your point, it's only potentially misleading only if you choose to read 2023-24 to mean 2023 AND 2024 but I'm not sure many would have read it that way.

Posted: Fri Feb 24, 2023 9:50am

Herefordjack

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Posted: Fri Feb 24, 2023 9:50am

Darro wrote on Fri Feb 24, 2023 8:44am:


I don't mind you saying but I don't get your point, it's only potentially misleading only if you choose to read 2023-24 to mean 2023 AND 2024 but I'm not sure many would have read it that way.

But why mention 2024 at all? It's not relevant to the return for 2023. That's my point. Why did you say 2023-24?

I'm guessing you worded it that way because the 2023 return has to be submitted between April and June 2024, but I think that terminology could potentially be confusing to a newcomer to Spanish tax affairs asking for advice.

Posted: Fri Feb 24, 2023 10:22am

William 58

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Posted: Fri Feb 24, 2023 10:22am

Herefordjack wrote on Fri Feb 24, 2023 9:50am:

But why mention 2024 at all? It's not relevant to the return for 2023. That's my point. Why did you say 2023-24?

I'm guessing you worded it that way because the 2023 return has to be submitted between April and June 2024, but I think that terminology could potentially be confusing to a newcomer to Spanish tax affairs asking for advice....

 

Read more...

...

Thanks for all the responses. I`ve contacted Cove and await their reply.

Posted: Wed Mar 1, 2023 6:23pm

beckfordburger

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Posted: Wed Mar 1, 2023 6:23pm

Darro wrote on Fri Feb 24, 2023 8:44am:


I don't mind you saying but I don't get your point, it's only potentially misleading only if you choose to read 2023-24 to mean 2023 AND 2024 but I'm not sure many would have read it that way.

I don't think anyone would take 2023-24 to mean 2023 AND 2024. Whether you're in the UK or Spain, a tax year is a 12-month period. In Spain, that 12-month period is a calendar year, 01 Jan-31 Dec. As Jack said, 2023-24 is meanless, as it implies a UK-style (Apr-Apr) tax-year.

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