19 Jun 2020 10:39 PM:

Is it the case that many people just don't fill in their 720 forms? If there's a million (or more) UK citizens here, I can't believe they're all filling this thing out.

Are most people just not bothering?

Thread: 720 and other forms

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15 Oct 2017 8:01 PM:

Thanks Bob,

Yup, I'm aware of all of that, thanks.

What I'm specifically after is the interplay between IRPF and IP.

In the Blevins Franks guide:

blevinsfranks. com /news/blevinsfranks/article/spanish-wealth-tax-how-does-it-affect-expatriates

There's this reference:

For a start, your cumulative wealth and income taxes cannot exceed 60% of the ‘general and savings taxable income bases’ of residents (but still excluding from savings income any gains on assets held for more than one year, and the associated tax rates). This is subject to paying a minimum of 20% of the full wealth tax calculation. 

This reads as saying the cumulative IRPF and IP can't exceed 60% of the general/saving tax base. How exactly is that base defined? Has anyone used this?

Thread: Detail on Wealth Tax -

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11 Oct 2017 10:33 PM:

Haha, I was a bit put out by the response to my post from the accountants that seemed to say "Pay us, we'll tell you"

So I was spurred on to find out the answer and reply to myself. As I can't find this written down anywhere else in English I'll put it down here. Here, we go, someone tell me if you think I'm wrong. It's here in Spanish:

https://planificacionfiscalypatrimonial. com/tag/limite-conjunto-irpf-ip/

Cuota*_IRPF + C_IP ≤ 60% x BaseImponible*_IRPF

Basically the fee for Impuesto Patrimonio + income tax can't exceed 60% of the income tax alone, but you always have to pay at least 20% of the Patrimonio charge.

This seems pretty good news for retirees that might be income poor but cash rich.

I'm pretty sure that the graph in the link I provided is the wrong way round - anyone agree?

Anyone have any thoughts on this? Would love to get any corrections or extra detail!

 

 

 

Thread: Detail on Wealth Tax -

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10 Oct 2017 1:12 PM:

Hi all,

Thinking of moving to Spain and trying to get my head around exactly how the Wealth Tax works. I've read around it, I think I understand the detail in terms of the exemptions, exemptions for housing, what's included and what isn't, how form 720 works, etc.

What I don't understand is this line that I've seen on a few tax advice websites:

"Your cumulative wealth and income taxes cannot exceed 60% of the ‘general and savings taxable income bases’ of residents (but still excluding from savings income any gains on assets held for more than one year, and the associated tax rates). This is subject to paying a minimum of 20% of the full wealth tax calculation."

What exactly does this mean in practice? It sounds like you calculate the wealth tax payment, but that your total wealth and income tax is capped by something called the 'general and savings taxable income bases', but also that the wealth tax is floored at 20% of the calculated charge.

Could someone give me an example of this? What exactly does 'general and savings taxable income bases' mean?

Thanks!

 

Thread: Detail on Wealth Tax -

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