Accounting Consultant in Spain

Spanish Tax Obligation System

You have actually stayed in Spain for 6 years, your attorney told you that you did not require to pay tax obligations, when you acquired your home “because you get a pension from the UK”. Incorrect!!

The Spanish Tax Regulations, which have actually not altered, state CATEGORICALLY that if you invest greater than 183 days per calendar year in Spain, you need to sign up in the Spanish Tax system. Set Up a Company in Spain “Double taxation arrangement” does not imply that you can CHOOSE where you pay your taxes.

There are exemptions, as an example if you have actually helped the British Federal government as a civil servant or member of the armed solutions, you can just be taxed in the UK on that revenue. If you obtain a state pension plan as well as various other private pensions from professions you may have had after leaving government solution, then those earnings have to be proclaimed and also strained in Spain

Failure to register can result, not only in fines for non-submission of tax obligation statements, however the tax itself. The Spanish Tax Authorities presume that if you haven’t registered, you are “non-resident” consequently should be paying “wide range tax obligation” (which our company believe was eliminated in January 2008, though you will certainly still need to pay it for 2007).


This might become an issue, if you are fortunate adequate to sell your residence in the present market location, as the notaries will just approve proof from the Agencia Tributaria that you are registered as a tax obligation resident. If you can not confirm it, Accounting Consultant in Spain they will certainly not just withhold 3% to cover resources gains tax (from which you would certainly be exempt if you have been a tax obligation citizen for 3 years and also more than 65), but they will certainly ask if you have paid riches tax obligation. If your response is “no” then they will determine 5 years worth of wide range tax obligation and also deduct from your web sale proceeds

Tax residency likewise gives you greater Succession Tax allowances, as soon as you have been in the system 3 years and in the very same home, which should be your main home for 2 years.