Join the Torre de la Horadada forum
My name's Alex and this is my website all about Torre de la Horadada in Spain. Register now for free to talk about Banking and finances in Torre de la Horadada and much more!
We have recently completed our Residencies, and have received our TIE cards. Are we also required to change our Tax Residency status from the UK to Spain . We have Bank Accounts both in Spain and the UK, and receive UK pensions
Posted: Thu Apr 29, 2021 11:17pm
Super helpful member
If you gained Residency between 1/1/21 and now, you are effectively tax-resident in Spain this year.
The Spanish tax year is Jan-Dec.
You need to talk to a tax gestor early next year.
You will need to complete a modelo 720 (declaration of worldwide assets) in Feb 2022.
In June 2022 you will need to submit income tax returns for Jan-Dec 21.
You will pay your income tax to Spain (for 2021) in 2 chunks - in June and November 2022.
Late in 2022 you can start the process to leave the UK tax system. Until this is complete, you continue to pay tax paye in the UK. So, for a period of time, you will pay tax in both places concurrently.
(FWIW, my wife and I started our process to leave the UK tax system last October. We are still paying UK tax paye. This year is probably worse than usual - Covid delays - but the UK owes us a tax refund from 1/1/19).
Most UK income is taxable in Spain (private sector company pensions, UK state pensions, dividends, ISA income).
A few categories of income remain taxable in the UK - most commonly, Crown pensions.
Posted: Fri Apr 30, 2021 8:38am
Super helpful member
As a resident you are liable to disclose and pay taxes in Spain on your world income and financial assets. However, as my wife says, never put all eggs in the same basket. When handling six digit amounts it can be worthwhile to talk to the specialists, preferably with offshore branches..
Find more Banking and finances topics from a particular area:
Or view all Banking and finances topics in all of Costa Blanca.
