Do you live in Spain for more than 183 days a year?
If so, you are liable to pay tax on all your global income, according to Spanish law.
Many foreigners who live here permanently do not submit annual income tax returns, either out of ignorance or because they are afraid of paying high taxes.
But ignorance of the law is no excuse; a tax return should be submitted annually, and taxes should be paid where applicable by all tax residents. Until now, the Inland Revenue has not been on top of foreigners living permanently in Spain, but in the past year or so, due to the financial crisis things have changed . Now the Spanish Government is tightening things up.
So don’t delay, think about becoming a tax resident and submitting an annual return. This should be done during the months of May and June, and we make appointments to see our Accountant in May each year.
Pensioners with low monthly pensions will probably not have to pay any income tax as a result of their tax return. However, if the living here over 183 days applies to you, you still need to submit one, even if it is a nil return, and even if your pensions or income are taxed in the UK. Contact Ana office@spanishsolutions.net for any help.
Also, please be aware that a green Residencia certificate does not mean you are a fiscal resident, only registering properly for tax means you are a tax resident of Spain. And not having a green certificate does not mean that you do not have to pay taxes, either non resident or resident. Everyone with a property in Spain should be making a tax return, either a non resident one, or a resident one.
20 Comments
Angela Bik
Hello. I work 4 moth a year in norway and get taxed there. Is it possible and if how that i get relieved from paying these taxes in norway and get taxed therefore in spain? I do have my green residency card.
I am looking forward hearing from u.
Thank u
Angela Bik