Working in the UK and having shares' dividends in Spain

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05 Feb 2012 12:00 AM by barlolvas Star rating. 2 posts Send private message

Hello to all. I have recently found this website and I am writing to see whether anyone can throw in any light on this matter. Thank you very much beforehand.

A friend of mine, who is Spanish, has worked in the UK for the last 15 years, as an employee in an English company. Her salary is £32,000 gross per year. This is her only source of income in the UK, for which she pays taxes through PAYE.

At the same time, she also has some shares with Banco Santander which she bought in Spain. The shares produced 9,900 euros in dividends last year. Tax for this dividends was paid at source in Spain.

I would like to ask this:

1) is this ok, the fact that she pays the tax for her salary in the UK, and the tax for the shares' dividends in Spain?
2) should she pay the tax for the dividends in the UK (and not in Spain)?

Many thanks for any help, very much appreciated.





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06 Feb 2012 3:45 AM by johnzx Star rating in Spain. 5242 posts Send private message

I suggest she calls her UK tax office and asks for advice from the dept which deals with income derived in another country.

 

I am sure they will give her instant advice.

 

I have done the same, in reverse.  Interest on a UK bank account when I am tax resident in Spain (albeit that I have to pay tax on a pension I get in UK as a former government employee). 

 

In my case:  UK bank interest,  if the bank will pay gross, is taxed in Spain.  If, like Nationwide, they will not pay gross, I get 8% refuned by the HMRC, of the 20% withwheld.   I can use the 12% not refunded, to off-set against my Spanish tax liablities.

 

The HMRC were very helpful.





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