Paying taxes in UK/Spain

Hi Caron,

As a resident in Spain you don’t have a option, you must pay your taxes in Spain. Taxes in Spain seem to be higher than the UK. But you only pay your tax in Spain, your Accountant will get back your tax paid in the UK. Hope that helps. 

Thank you for your quick response. My husbands 2 private pensions are still paid into our English bank account so obviously we are going to pay taxes in UK and I also do accept that we also have to pay taxes in Spain but I don't understand why our solicitor is advising us to give up paying taxes in the UK does he think it would be beneficial for us? 

Regards Caron 

It doesn’t matter we’re his pensions are paid, that is your choice. But you have to pay tax in the country you are resident. I am very surprised the person who has completed your tax return has not told you this. The tax office in Spain can be very strict, and if they feel you havent paid the correct tax they can just take it out of your bank account. I really don’t want to frighten you, but got caught through no fault of my own, by giving the wrong information. 

Get in touch with the HMRC in the Uk and inform them of your change of circumstances and that you are now resident in Spain and come under the Spanish taxation law and this is the first year of being taxed in Spain, you may automatically get a tax refund from the HMRC if entitled, although the Spanish tax year runs from January to December and the Uk from April to April, which may cause a delay in any refund. The HMRC and Spanish tax office did work together before brexit.

Some UK "Crown Pensions" remain taxable in the UK (Military, Civil Service, Police, Some NHS/local authority).

They must still be reported in Spain.

Otherwise, all income is taxable in Spain.

I have an appointment with them tomorrow so I will see what advise they give us. 

Many thanks Gez. 

Caron 

Thanks for your advice. I will certainly do that. Will it be more beneficial to us if we did that. 

Caron 

It’s always best to inform the HMRC and they can be very helpful. I am on the understanding that you can sign up online to notify them, @ gov.uk/HMRC , good luck.

Many thanks Pete. I think I will get my husband to ring them as it is he's pensions about this matter to see what they say. 

Caron