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I live in Spain and have a Spanish bank account and also a bank account in the UK that has savings in that I don’t use. I have recently had a letter from my UK bank asking me where I will be paying tax, UK or Spain.
Which would be my best option?
Posted: Mon Dec 28, 2020 9:04pm
Super helpful member
You don't have a choice.
You pay income tax to the country in which you live.
If you "live in Spain" for >182 days/year, you must have legal Residency, and declare/pay income tax here.
There are a few caveats around this, but in general bank interest, pension, dividends, etc., are liable for income tax in Spain.
There are some forms of employment-based pension (civil service, military, local authority, some types of NHS) which remain taxable in the UK, but which still must be declared in Spain.
Posted: Mon Dec 28, 2020 9:07pm
Kelvin1960 wrote on Mon Dec 28, 2020 9:04pm:
You don't have a choice.
You pay income tax to the country in which you live.
Read more...
If you "live in Spain" for >182 days/year, you must have legal Residency, and declare/pay income tax here.
There are a few caveats around this, but in general bank interest, pension, dividends, etc., are liable for income tax in Spain.
There are some forms of employment-based pension (civil service, military, local authority, some types of NHS) which remain taxable in the UK, but which still must be declared in Spain.
Thank you for your advice, 2021 will be our first year to pay tax here.
Posted: Mon Dec 28, 2020 9:09pm
Super helpful member
Yvonne53 wrote on Mon Dec 28, 2020 9:07pm:
Thank you for your advice, 2021 will be our first year to pay tax here.
In that case, your Spanish tax adviser will explain what you need to do.
