| The Comments |
The thing about the 22k threshold is that it only applies to:
Income from one source, where tax has already been deducted; it does not apply to anyone eligible for the double taxation treaty, in other words, the majority of expats.
Ex pats are often told the tax threshold is 22k, misled by accountants, and go happily on their way thinking how generous the Spanish tax allowances are-if only! We were given this misleading information when we first came here, and even now, Expats are still given the wrong information.
0
Like
|
You have to make an initial declaration. In subsequent years, if your earning have tax deducted at source you do not have to make a declaration if your taxable earnings are below €22,000. (Unless you are being paid by more than one employer in which case it is reduced to 10,200).
Bob: I understood that to be unless the income is from MORE than one source. So one employment (taxed at source) and some other income, say interest on a small bank account would mean a tax return is required.
That is how my tax adviser interprets it, and why on my, declarable income in Spain, of less that 22,000, I make a return each year
This message was last edited by johnzx on 29/04/2014.
0
Like
|
Yes Bob, the computation can be quite challenging at times, I wouldn't want to do it without professional help.
If both partners are earning, it may be better to submit two individual returns (you cannot do that if only one person is earning).
I ask our accountant to simulate two single returns aganst a joint declaration and then submit whichever is best for us. Soon be that time again unfortunately!
_______________________
0
Like
|
Right im completely confused now. Say I have a pension of 3k per anum and draw down say 3k per anum from savings in the uk of 50k. I have a property ofsay 50k euro Iin spain and a business property of 300k in the uk my wife would also have the same income and of course own half of both properties 1. Would it be expensive to be a tax resident in spain or stay the 183 side. 2. If I sold my business property which would incur no uk tax and bought another house am I allowed to carry over to the new property without incuring tax. 3. If I die my estate would not incur any inheritance tax as it would probably fall below the threshold would I have to pay or my estate pay some 50% tax on money that would never go to spain anyway, I agree tax would be liable on spanish property.
0
Like
|
Casper,
do the math or better still get a tax accountant. If you run a business then you or s(he) will have access to a professional that run the numbers.
Rossetti
0
Like
|
If you are tax resident in Spain, when you die, your wife will pay inheritance tax on the value of your worldwide assets, which from what you say, sound considerable; i cannot understand why you think they would be under the threshold. They might be for UK IHT, but not for Spain.If you are unfortunate enough to live in Murcia, where they have abolished regional tax allowances, and only have just below 16,000 k, the surviving spouse would have a hefty bill.
Remember there isn't a double taxation treaty for IHT as there is for income tax between Spain and UK
Wouldn't the sale of your business property incur cgt in Spain?
0
Like
|
Rosseti. Yes think I will but there lies the problem finding one who's a. Straight b. Tells the truth c. Admits liability when their wrong
0
Like
|
As with accountants in UK once the client has signed the tax return the onus is on the client. Would suggest everyone employs a Spanish tax official because it is not as cut and dried as people are posting on here suggest. There are variables which a good accountant can legally use to lower tax.
0
Like
|
As with accountants in UK once the client has signed the tax return the onus is on the client. Would suggest everyone employs a Spanish tax official because it is not as cut and dried as people are posting on here suggest. There are variables which a good accountant can legally use to lower tax.
0
Like
|
As with accountants in UK once the client has signed the tax return the onus is on the client. Would suggest everyone employs a Spanish tax official because it is not as cut and dried as people are posting on here suggest. There are variables which a good accountant can legally use to lower tax.
0
Like
|
As with accountants in UK once the client has signed the tax return the onus is on the client. Would suggest everyone employs a Spanish aesoria because it is not as cut and dried as people are posting on here suggest. There are variables which a good accountant can legally use to lower tax.
0
Like
|
Sorry folks for multiple postings. Homer said he had messed up !!!!
0
Like
|
I have forgotten what the thread was was it not the end to mediterranean dream. When did we jump to taxation computations and back room accountants. Rules is rules. You cant always get what you want. MJ said that back in the 60s. There was a dream. A fishing village with local people willing to help. In keeping accomodation sun and sea and Sangria. Its all still there. But it was not civilized enough and it all started to change some people call that civilization and thats when the dream stopped and reality has taken over. We are where we are today. In a great big melting pot with our hands tied behind our backs in the best possible taste for fear of rebuffle. Its all over now. Welcome to the 21st Centuary.
Anton P
_______________________
Antonp
1
Like
|
All countries progress but I feel Spain is very slow in catching up bureaucracy wise and their legal/government routes and processes seem very difficult to use and sometimes nigh on impossible to deal with !
I suppose you either take Spain or leave it as it is and don't want for a miracle to happen to change things for the better !
1
Like
|
|