TAX INFO Please

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04 Dec 2011 12:00 AM by totallyconfused Star rating. 2 posts Send private message

This is my first post, so please be gentle with me.
This is a tax domain question and a bit long winded, sorry.

I am based in the Canary Islands, and bought my house at the beginning of this year (2011).

I already  have Empadramiento, but because I am spending more than 3 months a year, it seems I am obliged to register and obtain a Certificado de Extranjeros at my local National Police Station.  I plan to do this in the next couple of weeks.

I am told this is sufficient for me to visit my house for up to 183 days a year without further tax issues.

Next year I will be declaring my “non residents tax, La Renta” for the first time on form 210 - not a problem.( my house is my second home and will never be rented out to others)

However, during 2012 it is possible I will spend even more time there which after 183 days, I am told I will automatically become a tax resident, and will be OBLIGED to present a tax declaration(in addition to my “non rental tax declaration)

BUT all my income is derived in the UK and I still have a home , medical registration etc. and want to maintain my UK Tax status under the terms set out by the dual taxation treaty.

How do I go about this?  Do I just declare to the Spanish tax authorities on the appropriate form that I have no Spanish income.  ? Do I need a special form from the UK Inland Revenue to show my UK Tax Status?   Do I need to submit a Spanish Tax declaration at all as I have nothing to declare?

Any serious and knowledgable help will be much appreciated.




 





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04 Dec 2011 12:35 PM by johnzx Star rating in Spain. 5242 posts Send private message

The Empadron does not affect your tax status.  It is the register of people who live in a municipality and is a legal requirement. That said, some municipalities allow or even encourage everyone who owns a property to register even if they spend only holidays here, as the town hall receive allowances from central government based on the number of citizens registered on the Empadron.
 
However (and I have confirmed this with the Spanish tax office, although I know people will disagree) once one has registered on the EU Citizens Register with the National Police (and got the certificate on green paper) they are tax resident in Spain.  An example is that my friend’s bank froze her non-resident’s account when they were internally informed she had registered.
 
The183 day rule, says if one is physically present in Spain for a total of  that period in a year,  they are automatically tax resident and liable to pay tax on their worldwide assets (excluding any which are included in Double Taxation Agreements). That means; if does one register, say because they are not permanently here for 90 days, i.e. they leave after 85 days for a day or two, they automatically become tax liable.





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05 Dec 2011 12:06 AM by SMYTHIE Star rating. 145 posts Send private message

 TOTALLY CON DONT U THINK U NEED AN ACCOUNTANT?





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05 Dec 2011 12:33 PM by totallyconfused Star rating. 2 posts Send private message

Yes you are right and will be doing so in next few weeks, but had hoped for some real live experiences from members here so I could be armed with some knowledge before I see the Accountant. 





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