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Implications for owning a house in both uk and spain

Posted: Tue Feb 19, 2019 9:33am
5 replies174 views3 members subscribed
sjparky

Posts: 3

Location: Los Gallardos

Joined: 13 Jan 2019

Hi

Last year we bought an apartment in Spain.

We intend to move to Spain permanently in March.

My question is, what are the Spanish tax implications if we keep our house in the uk and use it to help finance our life in Spain? We have been told that if the Spanish government find out, they will tax you heavily. Since we are intending to declare the earnings on our uk tax returns, and the amount totals to much less than our joint income allowance, why would it be taxable in Spain?

On arriving in Spain next month, we intend to meet with a Gestor to discuss residentia and our options.

We fully intend to make this move legal, but, if true, can't understand why we would be taxed for property in the uk.

Any help and information on this matter would be very much appreciated and thanks in advance.

BobL

Posted: Tue Feb 19, 2019 10:22am

BobL

Super helpful member

Posts: 2170

1225 helpful points

Location: Mojacar

Joined: 18 Aug 2016

Posted: Tue Feb 19, 2019 10:22am

Hi,

Ah, death & taxes!!!!! Are you in fact declaring for tax in UK as well as in Spain????

Gratefully we don't rent out our UK property so don't have this additional concern although we have to divulge as an asset.

Actually not sure if you have identified a Tax Professional but would really recommend Salvador Gestoria of Paseo Mediterraneo 327.

Why not send an e mail enquiry to Ana in the administration department on ;-

[email protected]

www.gruposalvador.es

Incidentally bit seems as though the Spanish Tax Departments are currently targeting unpaid tax.

Better to be legal although so many aren't.

Saludos,

Dr. Bob and Sandra

Mojacar Playa and Puerto Lumbreras

sjparky

Posted: Tue Feb 19, 2019 10:53am

sjparky

Original Poster

Posts: 3

Location: Los Gallardos

Joined: 13 Jan 2019

Posted: Tue Feb 19, 2019 10:53am

Hi Dr. Bob and Sandra

Thanks for your reply.

We have already been recommended a Gestor in Los Gallardos and have arranged to meet him next month, but if it doesn't work out we will try your recommendation.

Since we are not intending to work in Spain, how would we be liable to tax? Obviously we are paying the local council tax and all charges relevant to living somewhere, these payments were set up when we bought the apartment last year. 

Regards Steve 

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BobL

Posted: Tue Feb 19, 2019 1:15pm

BobL

Super helpful member

Posts: 2170

1225 helpful points

Location: Mojacar

Joined: 18 Aug 2016

Posted: Tue Feb 19, 2019 1:15pm

Hi again,

Now I'm no sage and we are Resident in Spain but with properties in UK, OZ, INDIA & 2 here. I have to admit I pass all such probs to the likes of Salvador.

Up to Brexit one has been aware of Physically Resident or Fiscally Resident for Tax purposes. Currently, & I may be days out, if you are in Spain for 186days or more you are liable for Tax. Also if you have more than 50,000 €s or £s outside Spain you have to declare it or face penalties.

It gets tighter & tighter and think Brexit will bring even more changes like the introduction of the ID Card for foreigners.

As I re-iterate, I tend to leave such complications to advisors.

Saludos,

Bob and Sandra

PuffTheMagicDragon

Posted: Tue Feb 19, 2019 8:16pm

PuffTheMagicDragon

Helpful member

Posts: 304

188 helpful points

Location: Oria

Joined: 22 Sep 2018

Posted: Tue Feb 19, 2019 8:16pm

As a Spanish resident, you have to declare your 'total worldwide income' to the Spanish tax authorities. Speak to a Spanish tax accountant and he/she will make sure you don’t pay tax in both Britain and Spain.

The tax here may not be as drastic as you may have heard.

Good luck with the move

Puff

sjparky

Posted: Tue Feb 19, 2019 9:11pm

sjparky

Original Poster

Posts: 3

Location: Los Gallardos

Joined: 13 Jan 2019

Posted: Tue Feb 19, 2019 9:11pm

Yes, thanks

 I'm hoping that the Gestor we are meeting will have the knowledge and contacts to help us honestly (and legally) move over with as few hassles as possible.

Obviously, since we won't be earning enough from renting our house out in uk to be eligible for tax, we don't think we should have any to pay in Spain. Though perhaps that is rather neive of us, eh. The same could be said for any savings we have in the uk, which again is all legitimate and taxed in the uk if applicable.

Again thanks and any other advice you could give would be gratefully received.

Steve

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