Residentia obligations.

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30 Apr 2013 9:15 PM by Acapulco Star rating in Costa Blanca South.. 342 posts Send private message

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 I know you have to have a Residentia to sign on to the Spanish health system etc but obviously signing on to the health system is optional. When ouy have the Residentia are there any things that you have to do by law ( e.g.pay Spanish Tax) or can you just carry on being like a holiday maker.

Also are there any legal obligations you should comply with if you live in Spain 11 months of the year.?

i have been a resident for 5 years now and have gone as "Spanish" as possible, these questions are to clarify points that cam e up in conversation recently, there seems to be considerable confusion.



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01 May 2013 8:17 AM by johnzx Star rating in Spain. 5242 posts Send private message

Just to avoid confusion.      Residencia for EU citizens was abolished in April 2007, however it still exists for non-EU citizens, thus say a Filipino or a American must get one.  
 
Since 2007 EU citizens who spend, or intend to spend,  3 months permanently in Spain have been  required to  register on the EU Citizens Registration (some people albeit in correctly, continue to call this Residencia).  It is valid indefinitely.
    
The Hacienda will tell you that once you have so registered you are also tax resident, however, some posters are certain that is incorrect, but let’s not go there as most who will register will probably have come to live in Spain and thus will spend over 183 days in Spain.
 
Those who do spend 183 or more in any year, or have their centre of economic activities, main home, family residing,  in Spain,  must not only register but also automatically become Tax Resident and are thus liable to pay tax on their  worldwide income, in accordance with any Double Taxation Agreement their country has with Spain.  NB Each Agreement is different, so check the internet for that which applies to you.
 
Those who own a property in Spain, but  are not living here, must pay an annual tax on their holiday/second home, and Patrimonio tax if it has a Catastral Value (see IBI notice) of more than 300,000 euros,
 
Those who are tax resident and are not employed must make a tax return each year in May/June even if their income is below the tax threshold. (See the regulation for tax declarations of you are employed, as of your earnings are below a certain figure you may not need to make a tax return).
 
Those tax resident also must pay Patrimonio Tax if they have a second property in Spain, or if the value of their main home is over 300,000 euros and/or their assets, worldwide, are over 700,000 euros.





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01 May 2013 8:49 AM by Acapulco Star rating in Costa Blanca South.. 342 posts Send private message

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 Thanks John,that clears things up a bit. The Resdidencia I referred to is indeed the registration you mentioned.Only difference is my friend rents over here 365 days a year, should he be on the Spanish tax system? 



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01 May 2013 8:55 AM by johnzx Star rating in Spain. 5242 posts Send private message

...........................................   my friend rents over here 365 days a year, should he be on the Spanish tax system?

 

Yes, Acapulco,   as I said:-  
 

Those who spend 183 or more in any year, (or have their centre of economic activities, main home, family residing, )  in Spain,  must not only register but also automatically become Tax Resident and are thus liable to pay tax on their  worldwide income, in accordance with any Double Taxation Agreement their country has with Spain





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01 May 2013 9:07 AM by Acapulco Star rating in Costa Blanca South.. 342 posts Send private message

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 My friend has lived over here for 6 years, rented for 5, still does not pay Spanish tax.He thinks because he still has a property in the UK he is o.k. to do this. I hope they don't catch up with him as he is a good friend and I would be sorry to see him panic and go back to the u.k.

Thanks again, John.



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01 May 2013 3:52 PM by camposol Star rating in Camposol. 1406 posts Send private message

Sorry Acapulco-if your friend hasn't been paying his taxes in Spain for years he deserves to be caught-why didn't he go to an accountant for advice?





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01 May 2013 5:22 PM by El alamillo Star rating in Nottingham & El Alam.... 221 posts Send private message

 Question for John x

Those who own a property in Spain, but  are not living here, must pay an annual tax on their holiday/second home, and Patrimonio tax if it has a Catastral Value (see IBI notice) of more than 300,000 euros,

Hi John

I am a non resident with a property in Spain that has a Catastral Value under 300,000 euros.

I paid €398 in tax December last year. For 2011

What tax did I pay.

I have been a non-resident for 11 years now and have paid tax each year.

They used to call it Wealth Tax.

JB



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01 May 2013 5:47 PM by johnzx Star rating in Spain. 5242 posts Send private message

Hi.Alamillo
 
You used to pay two taxes, which were shown on one form. That was Patrimonio (Wealth Tax) which was calculated from the first euro of value,  and the ‘Second home tax’ (foreign owner's property tax).    
 
There was a change in the law, which said Patrimonio Tax would forthwith be calculated on the value over 300,000 euros.    
 
 The ‘second home tax’ is calculated on the whole value. 
 
Thus you probably now pay just the ‘second home’ tax, unless the property has a catastral value over 300,000 euros.
 





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01 May 2013 5:52 PM by El alamillo Star rating in Nottingham & El Alam.... 221 posts Send private message

Thank You John zx



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01 May 2013 7:02 PM by Acapulco Star rating in Costa Blanca South.. 342 posts Send private message

Acapulco´s avatar

 Sorry Acapulco-if your friend hasn't been paying his taxes in Spain for years he deserves to be caught-why didn't he go to an accountant for advice?


I guess like so many Brits he found it easier to leave well alone.Either that or he thought he would get away with it and so far he has.What are the consequences if he gets caught now?


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02 May 2013 1:00 PM by mariadecastro Star rating in Algeciras (Cadiz). 9402 posts Send private message

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This guide on taxes might be of help:

 http://www.costaluzlawyers.es/images/guides/spanish_taxes_free_guide.pdf

Please contact us if you have any question/s.

Kindest,

Maria

 


This message was last edited by mariadecastro on 02/05/2013.

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02 May 2013 1:56 PM by Acapulco Star rating in Costa Blanca South.. 342 posts Send private message

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 Thanks for the tax info Maria.Is there an allowance we are allowed tax free ? Like most people I think I am paying to much tax



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02 May 2013 2:08 PM by camposol Star rating in Camposol. 1406 posts Send private message

He should expect fines and payment of back taxes. An accountant will sort it out.





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02 May 2013 2:12 PM by johnzx Star rating in Spain. 5242 posts Send private message

 

 Acapulco
 
From:-          http://www.advoco.es/hot-topics/102-spanish-income-tax-rates.html
 
Personal allowances
Individual €5.151
65 and over €6.069
75 and over €7.191

 

 


This message was last edited by johnzx on 02/05/2013.



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03 May 2013 3:40 PM by Acapulco Star rating in Costa Blanca South.. 342 posts Send private message

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 Thanks again.



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03 May 2013 10:04 PM by baz1946 Star rating. 2327 posts Send private message

Sorry Acapulco-if your friend hasn't been paying his taxes in Spain for years he deserves to be caught-why didn't he go to an accountant for advice?


I guess like so many Brits he found it easier to leave well alone.Either that or he thought he would get away with it and so far he has.What are the consequences if he gets caught now?

 

Surely if your "Friend" is over 30 years old and British born he knows the consequences of not paying tax when it should be paid, after all everyone in England has grown up with the knowledge of what will happen if tax is avoided....And most tax laws are pretty much the same all over.

I think some believe that if everyone who don't pay tax suddenly started to pay tax, then the country would get out of the rut it's in,  (UK, Spain, any country) and the honest tax paying people would have lower tax bills...Deluded for sure,  whats your friend avoided? 5 years, say 300€ a year..1500€ unpaid tax, ministers, big business owners fiddle this every week one way or another, truth is like it or not, you pay more tax only means more money for them to fiddle and waste,

You have heard this every time in the UK with road tax, TV license, car insurance and more, still waiting for it all to come down.

Suppose whats good for the Goose is good for the Gander as well, when it comes to not paying tax.

 





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04 May 2013 10:54 AM by Acapulco Star rating in Costa Blanca South.. 342 posts Send private message

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 I see your point Baz but I think 300 euros is a bit of a low estimate for annual tax. If you are paying that maybe I should ask the name of your accountant. . i am paying over 1,000 a year on an pension income of about 13,000 euros. My friend has a bit bigger income than I but he would get a renters allowance i suppose that i do not.

 



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04 May 2013 11:28 AM by camposol Star rating in Camposol. 1406 posts Send private message

Acapulco- you ARE paying too much tax; we are in a similar position and pay much less tax. Have you got a qualified tax accountant, familiar with UK/Spain taxas? Or do you just go to a gestor. We have had several accountants, with one, we did pay over 1000 euros tax, but with the one we have now, now it's under half that!





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04 May 2013 12:34 PM by baz1946 Star rating. 2327 posts Send private message

 I see your point Baz but I think 300 euros is a bit of a low estimate for annual tax. If you are paying that maybe I should ask the name of your accountant. . i am paying over 1,000 a year on an pension income of about 13,000 euros. My friend has a bit bigger income than I but he would get a renters allowance i suppose that i do not.

 

Sorry Acapulco but don't get misled i don't pay any tax in Spain right now as i sold my house a few months back, and as you know that tax was very low, i do still retain the same accountant i have had for about twenty years in Spain and if you do want their name/address i will send it via private email, they are in Torrevieja and i think they are okay, but that's only my opinion.

To date i have never ever had any problems with them, unlike the many on here who seem to have problems every other day. But it's worth remembering..Pay cheap...Pay twice.

I presume your euro pension is transferred from the UK, could you find out the amount of £££'s tax you would pay if this was still in the UK...Perhaps then 1000€ is not so bad, but on the face of it sounds a lot, and if it were me i most certainly would be having a word with another accountant.   

 





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