Tax returns for resident pensioner

So much half baked and downright dodgy advice there it's difficult to know where to start.

Particularly aggregious is -

"They may at some point ask what your worldly holdings are, but didn't this time here, and it isn't taxed upon, they just want to know"

That refers to the infamous Modelo 720 which MUST be completed if you have assets outside of Spain which total in excess of €50,000, that may include pensions for which you have drawdown options.

The onus is on you to submit the 720 NOT the taxman to ask for it!

Penalties for failure to submit on time or submitting incorrect or incomplete information can be harsh.

Unfortunately for you the deadline for the 720 was March 30th. so if you do have declarable assets you are already out of compliance and unknowingly potentially liable to a penalty.

There is no "filing fee", submitting the Modelo 100 tax return is completely free. Fees demanded by Gestors or Lawers are just that but not a penny of it goes to the tax man or to pay for the submission.

You do not need your TIE nor a copy of your passport for the Modelo 100, a Gestor or lawyer might want the TIE but only for your NIE and support number which you can just as easily give them verbally and no clue as to why they would want a copy of a passport, neither play any part whatsoever in completing the actual return.

The best advice I can give you is to go and see a reputable lawyer, and the sooner the better.

Hi Joanie,

Your UK State Retirement pensions and Local Authority pension are taxable in Spain, but your Teacher's pension may be one of those regarded as a "Crown" pension, in which case it has to continue being taxed at source in the UK - you should check with that pension provider.  Under the terms of the Dual Taxation Agreement between Spain and the UK, you will only pay tax on each pension in one country, as the DTA prevents you being taxed on the same income in both countries.

I wouldn't recommend a lawyer and certainly not a gestor to complete your tax returns (the first will be unnecessarily expensive and the latter is unlikely to be qualified) - you need an Asesor Fiscal.  We use Abaco Advisers in Torrevieja, who charge a fee of €77 per person:

https://www.abacoadvisers.com/

The Spanish tax calendar runs from 1 January to 31 December each year, with the filing periods for the Modelo 720 Declaration of (worldwide) Assets between January and March, and for the Modelo 100 Income Tax Return between April and June.  So I agree with Darro, you need to seek professional help as soon as possible.  As you only became resident in December 2021, a tax expert is the best person to advise whether they can handle a late filing with the Agencia Tributaria that doesn't result in a penalty against you.

Kind regards,

Kim

Thank you this is extreme helpful 

Thankyou really appreciate your help 

Thanks Dave is your lawyer local to this area? The one we used is too far away and not totally happy with him so would appreciate a recommendation. 

Hi,

For professional advice we used Angela in Hondon de los Frailes, so fairly local.. AP Abogados [email protected] and 868 053 061

English speaking too.

They have done a lot of work for us and we are pleased.

Kind regards,

D

Hi all 

Regarding income tax return - since Joanie only became resident in December 2021, she is unlikely to have been fiscally resident for the year 2021, so she has a full year to come before having to do a tax return, giving her plenty of time to gather advice? I'm sure somebody will correct me if I'm wrong.

Re Modelo 720 - does the same apply? i.e. it doesn't need to be done until next year?

Cheers 

Steve 

Sorry everyone we’ve been resident since December 2020 not 2021 . I realise we’re probably a bit late but been dealing with my husbands illness  for 6 months .

Hi Joanie,

In that case, you should have submitted the Modelo 720 in the first quarter of this year and you must do your Modelo 100 tax return ASAP.

Good luck 👍 

Kind regards, 

Kim