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Taxes - Page 2

marcliff

Posted: Thu Jun 1, 2023 3:12pm

marcliff

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Location: Rojales

Joined: 5 Jan 2023

Posted: Thu Jun 1, 2023 3:12pm

Batchy28 wrote on Thu Jun 1, 2023 2:55pm:

Me and my wife have stopped working now and we're both 56.we are both edging towards staying in the UK.maybe buying a appartment and going for the 180 maximum stay in spain.i know we can't be double taxed.thanks batchy28

Getting a bit confused. Are you a UK citizen or a EU (including Irish) citizen? 

Are you taking out residency in Spain and, if so, what visa will you be using if you are from UK?

If not taking out residency then the 180 days is split with no stay being more than 90 days and that applies (officially) to everyone. You only become a tax paying residency if you stay in Spain for more than 183 days in a year so the dual taxation bit wouldn't even come into play as you'd remain a tax resident in your own country. The only taxes you'd pay would be non resident tax and council tax. 

if you do become resident and are from UK, you can't leave Spain for more than 6 months in one  year or a maximum of 1 year in the first 5 years so you couldn't split your time between UK and Spain.

Bee2

Posted: Thu Jun 1, 2023 5:24pm

Bee2

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Joined: 19 Oct 2019

Posted: Thu Jun 1, 2023 5:24pm

It would appear you are simply going to be a holiday home owner in Spain. In which case you will pay non-resident income  tax which will be levied on the cadastral value registered for your property. This normally works out at approx 50% of the purchase value of the property. You then pay your tax at 24% (if non EU) on 2% of this value to Spanish Revenue. The cadastral value will also be used for your annual Town Hall rates bill. I think the  Torrevieja multiplier is around the 60c in Euro.  So if you bought a property for say €130000. The cadastral value would be approx €60,000. €60000×2% = €1200x 24% = €288 non-resident tax. If 2 people on the deeds each pays €144. The Spanish Revenue has no interest in any other income  unless you earn income from renting your property in Spain which must also be declared in Spain.

Bee

Batchy28

Posted: Thu Jun 1, 2023 5:37pm

Batchy28

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Posts: 8

Location: Torrevieja

Joined: 28 May 2023

Posted: Thu Jun 1, 2023 5:37pm

Bee2 wrote on Thu Jun 1, 2023 5:24pm:

It would appear you are simply going to be a holiday home owner in Spain. In which case you will pay non-resident income  tax which will be levied on the cadastral value registered for your property. This normally works out at approx 50% of the purchase value of the property. You then pay yo...

...ur tax at 24% (if non EU) on 2% of this value to Spanish Revenue. The cadastral value will also be used for your annual Town Hall rates bill. I think the  Torrevieja multiplier is around the 60c in Euro.  So if you bought a property for say €130000. The cadastral value would be approx €60,000. €60000×2% = €1200x 24% = €288 non-resident tax. If 2 people on the deeds each pays €144. The Spanish Revenue has no interest in any other income  unless you earn income from renting your property in Spain which must also be declared in Spain.

Bee

Thanks bee that does help.

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