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Taxes

Posted: Fri May 15, 2020 4:42pm
4 replies169 views3 members subscribed
cathejoh

Posts: 9

2 helpful points

Location: Mojacar

Joined: 14 Apr 2020

Hi All,

I have read & read & read.

My head is fried,

We are hopefully retiring to Mojacar next year, renting a property, will will have a home at home with savings also a bank account in Mojacar.

Will we have to pay tax on these or does the dual tax cover us only paying once.

I know this is a hard topic to answer.

Thanks Cath & Ray

DarioMartin

Posted: Fri May 15, 2020 9:35pm

DarioMartin

Super helpful member

Posts: 1595

1608 helpful points

Location: Vera

Joined: 16 Aug 2017

Posted: Fri May 15, 2020 9:35pm

If you are retiring here, then I assume that means you will live here?  When you take Residencia - or if after 31/12/20, TIE, you are a resident of this country and will be obliged to pay your taxes here.

cathejoh

Posted: Sat May 16, 2020 11:55am

cathejoh

Original Poster

Posts: 9

2 helpful points

Location: Mojacar

Joined: 14 Apr 2020

Posted: Sat May 16, 2020 11:55am

DarioMartin wrote on Fri May 15, 2020 9:35pm:

If you are retiring here, then I assume that means you will live here?  When you take Residencia - or if after 31/12/20, TIE, you are a resident of this country and will be obliged to pay your taxes here.

Hi,

Thanks for the reply, are we still paying tax then in the UK, as I understand Spain & the UK have a dual tax treaty, so you only pay tax once. This is my understand?

Regards Cath & Ray

DarioMartin

Posted: Sat May 16, 2020 12:08pm

DarioMartin

Super helpful member

Posts: 1595

1608 helpful points

Location: Vera

Joined: 16 Aug 2017

Posted: Sat May 16, 2020 12:08pm

cathejoh wrote on Sat May 16, 2020 11:55am:

Hi,

Thanks for the reply, are we still paying tax then in the UK, as I understand Spain & the UK have a dual tax treaty, so you only pay tax once. This is my understand?

Regards Cath & Ray

That is correct, you will not be taxed twice; however seek assistance from an asesora when you get here, because the Spanish tax system is ... complex and you are obliged to make a declaration on overseas assets

Alicia 11

Posted: Sat May 16, 2020 4:40pm

Alicia 11

Helpful member

Posts: 212

127 helpful points

Location: Mojacar

Joined: 30 Sep 2019

Posted: Sat May 16, 2020 4:40pm

cathejoh wrote on Fri May 15, 2020 4:42pm:

Hi All,

I have read & read & read.

My head is fried,

We are hopefully retiring to Mojacar next year, renting a property, will will have a home at home with savings also a bank account in Mojacar.

Will we have to pay tax on these or does the dual tax cover us only paying once.

I know this is a hard topic to answer.

Thanks Cath & Ray

if you have a home in both countries you must be a resident for tax purposes in the one you spend 183 days of more in a year in and you'll need residencia in Spain.  You will pay tax on all your income including what would be tax free in the UK like any premium bond winnings or isa interest and all interest on any savings accounts.  every year you at the moment must declare any assets worth more than 50 thousand euros house, savings, life insurances etc.  you do not pay tax on these at the moment but you never know?  you will not pay tax on any Civil service pension, forces pension but you have to declare it as income.   You pay tax on state pension as well.  Tax is calculated differently here so you need the assistance of a good person used to dealing with the process.

Tax year in Spain is 1 jan to 31 Dec and obviously it doesn't match with UKs 6 April to 5 april.  Also if you get any rental income from your UK property that is income to be declared.

  

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