New Spanish laws......

Casper    . ......   say I had a very modest UK house .. valued at £250, 000 and say £2000 in my UK account and am living on a pension or income of £12,000 per year,  what would be my tax payable in Spain if I stayed over the six months

 

If you are tax resident in Spain (that might mean immediately if you came to live here, i.e. the 183 rule would be over-ridden by the other qualifications) you would not pay any tax on owning that house in the UK nor having that amount in the bank. You would pay some tax (maybe a few hundred) on the pension income and any other worldwide income.

 Spam post or abuse? Please let us know

Based on the current exchange rate, and assuming you are over 65 ( but under 75) and single, or your partner has their own income , you would pay income tax of around €1300 (under 65 €1575). If you have a partner with no income of their own ( or below €3400), you can declare jointly. You then receive a further allowance of €3400, so with no income this would reduce the tax payable by €840.

In addition, assuming you are resident here, and assuming there is no rental income from from your UK property ( which is taxable in both the UK and Spain, but tax paid in the UK can be offset against spanish tax due). You will also be liable for the second homes tax. This is commonly known as the non-resident tax, but in fact is also payable by all fiscal residents in Spain on second properties.

 Spam post or abuse? Please let us know

Based on the current exchange rate, and assuming you are over 65 ( but under 75) and single, or your partner has their own income , you would pay income tax of around €1300 (under 65 €1575). If you have a partner with no income of their own ( or below €3400), you can declare jointly. You then receive a further allowance of €3400, so with no income this would reduce the tax payable by €840.

In addition, assuming you are resident here, and assuming there is no rental income from from your UK property ( which is taxable in both the UK and Spain, but tax paid in the UK can be offset against spanish tax due). You will also be liable for the second homes tax. This is commonly known as the non-resident tax, but in fact is also payable by all fiscal residents in Spain on second properties.

 Spam post or abuse? Please let us know

Yes Kathyslad I forgot the second homes tax. 

Based on what we paid this year for a property in Philippines, a £250,000 would be about 450 euros.

On my UK OAP (single person plus a dependent allowance - wife) of about 12,000 euros I paid 770 euros having made a joint return

 

This message was last edited by johnzx on 17/11/2013.

 Spam post or abuse? Please let us know

Thank you for your help in tax liability all said and done for all the benefits of living in spain then the tax burden is not worth living in the uk for over the six months for I'll pay the tax I would save double the tax in heating costs and umbrellas

 Spam post or abuse? Please let us know