resident or non resident tax

The tax was only reinstated for two years as an "emergency measure". Also, it is based on individual wealth..so....couples will be assessed for wealth tax separately, and jointly held assets are treated as belonging to each individual on a 50:50 basis, so the threshold for a married couple is therefore €1.4 million. Therefore if a property is held in joint names the exempt threshold value of the property increases to 600'000 Euros.

The primary residence is treated as exempt, for an individual, up to a value of €300,000. Double for a jointly held residence.

 66d35 said:  "The tax was only reinstated for two years as an "emergency measure".

This is true but recently the Government announced that although the initital intention was for the tax to be reinstated for only two years (2012 and 2013), the economic situation has made it necessary to add another two years (2014 and 2015).  Let's just hope it doesn't get extended any further, but I am not betting on it.  The same goes for the increased Personal Income Tax rates.

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

Please let us know if you have any question/s.

 The OP had a question - he still hasn't got an answer!

OK, now I admit I'm bored!!

 OK, Roberto, although I agree with you that the OP is no longer following the thread.

The tax rates and tax allowances are completely different for resident and non-resident taxpayers.  The tax base is also different.  The rates and allowance vary from year to year.  They are available in the website of the AEAT (Agencia Estatal de Administracion Tributaria), the Spanish Tax Revenue service.

One can only choose to be a resident or non-resident taxpayer by altering the circumstances, mainly changing the length of time one stays in Spain in each calendar year.  It has nothing to do with having a "residencia or being registered in the EU Residents Registry". These latter issues are administrative issues and not tax relevant except to say that if one has residencia or is registered in the EU Registry the tax authorities will assume one is also tax resident.

This assumption can be overcome, possibly with some difficulty, if one is able to prove that either due to the length of time of one's stay in Spain or by application of the tie breaker clause in an applicable Tax Treaty with the other country, one is not a tax resident of Spain.  This would not be an easy task as under the tax rules, one is taxed as a resident if one stays more than 183 days in a calendar year or has the intention of staying in this country more than that period of time.  Negating the intention when one is registered or has a residencia is very difficult although at least in pure theory, not impossible.

Good answer  

Hi, I am  very new to this forum and was taken aback by the rude bully boy tactics adopted by  johnzx. It is said "that he who shouts has nothing to say".

Ignoring him I am most grateful for the remaining posts which I found friendly,constructive and helpful. 

Apologies that my original question was not clear. I have an NIE number and do not own property in spain. I do not have residencia

but pay spanish income tax upon my uk income. From what you guys have said it would appear that I should not be paying tax without firstly obtaining residencia. 

I was under the impresion that spanish income tax can be paid by both resiidents and non residents. Hence my badly phrased question

whether the percentage of  tax and allowances applied to income is different  between residents and non residents.

It looks like I should hurry down to my national police station and get residencia. Should I still have the situation wrapped well and truly round my neck I would appreciate being told by one of you guys who is not given to" shouting." Thanks.

There is no such thing as residencia any more. It was abolished years ago.

Please see other (extensive) threads on this topic. There is an "EU Citizens Register". This is not 'residencia' and actually has zero to do with your tax situation. You become liable for Spanish (and worldwide) income taxes in Spain if you spend more than 183 days in any 12 month period here.

Spanish income tax is not payable by non (fiscal) residents. Only by fiscal residents. You are fiscally resident if you spend 183 or more days here. If you are still confused about this, I would suggest seeking professional advice from a qualified tax advisor who will look at your personal situation and be able to determine your precise status. Obvously, if you are not a fiscal resident of Spain I have no idea why you would be even registered for Spanish income tax.

 Oh dear, the swivel-eyed loons are taking over again, banging on about the literal meaning of the word residencia. It is quite clear that in this (and pretty much any other) context it merely refers to the state of being classed as a resident in Spain. Whether that status is recorded on a credit card sized ID card, or a green sheet of A4, is irrelevant. None of this drivel about what is acceptable ID at a supermarket is helping the OP understand his tax situation.

Jeryf, it might help us if you could explain when and why you obtained an NIE? Unless you did at one time register as a resident, or you bought a property here, it's hard to see why you even have one. Perhaps you work(ed) here, but in that case you would normally have had to register as a resident first also. And could you elaborate a little on exactly what type of "UK income" you pay tax on in Spain? pensions? Savings interest? And how do you pay it? It seems unlkely that you are filing a Spanish tax return on your own (no offence meant) so who does it for you? If you have a gestor doing it, surely they are the people to advise you on this matter.

I did say,  "Before ‘some of my friends’ here come to shoot me down"

But one of them could not  resist the opportunity to be critical. Bless him.

Using the term  'resident' is fine when describing a person who lives in a certain place but using a term which has a specific mean such as  'Residencia' which does relate to certain groups but not to others,  can be totally misleading. especially for those who are not as knowledge as some 'of my friends.'    Hence 66d saying "There is no such thing as Residencia any more"  is relevant.

Which part of your post(s) refers to tax? Please, if you have no advice for the OP and nothing constructive to contribute, ** EDITED - Inciting **.

 Let's please keep this thread polite at all times, before it gets out of hand and completely off topic

Apologies as this may appear a stupid question but can you be tax resident in Spain but still keep your UK nationality.

We have just bought a property in spain and intend spending a few weeks a year in Spain until we retire in a couple of years time. We are planning to sell our UK property and leaving the money in the bank.

We plan to spend around 6 months or longer in Spain along with 3 months per year in Florida and perhaps 3 months travelling.(all outside UK)

My question is without a UK property, and if we spent more than 6 months per year in Spain, I realise we would become tax resident but would we also lose our UK nationality and passport.

We will probably return to the UK eventually when grandchildren hopefully come along in the future.

thanks for help as always

regards

Kerry

thanks bobaol

off on a slight tangent.. would we lose our right on UK healthcare when we finally return to the UK?

I realise that as we are not of pensionable age we would need to take out private healthcare in Spain and Florida, etc. certainly until we state pensionable age (66 in our case). But I am not sure whether if we eventually return to the UK before aged 66 whether our NI contributions paid in for around 35 years to date would cover us for healthcare.

Kerry 
 

Healthcare in the UK is not contribution based but residency based. Therefore once the UK  becomes your usual place of residence you would be entitled to NHS treatment after a qualifying period of (I think) 6 months. Although in practice, once you have a UK address most GP surgeries do not ask too many questions and would accept you on their list. That may change in the future!

Have a look at the Government website and on this forum as the question has been asked before.

 Wife & I are Non-Resident in Spain and thinking of renting out our property. There is an outstanding mortgage. Would there be deductible allowances for this and other expenses associated with the property and what rate of tax would be payable on the rent after deductions? I understand the tax rate is 24.75% for 2012/2013. Would it be the same for 2014? If anyone has any knowledge on this, would apprecaite advice. Thanks. valtay