This is a question we often get asked and it is a tricky one when it comes to taxes in Spain! Everybody's circumstances are different but here we will try to simplify the general tax rates and rules (this is for the year 2020 ):
The income and earnings to be declared are:
If your income is equal to or greater than €22,000.00 from a single payer/ employment/source of funding;
Or you have received over €14,000.00 from two or more payers/employments( and have received more than €1,500.00 from a second payer/employment). This means for example if you have had several payers/employments/sources of funds based on these amounts in the same year, you will need to file a return.
PERSONAL ALLOWANCES :
Deductions per taxpayer = €5,500.00
Deductions per taxpayer over 65 years = €6,400.00
Deductions per taxpayer over 75 years = €8,100.00
Deductible expenses from net work income = €2,000.00
GENERAL TAXABLE BASE TAX RATES 2020:
From
€0 to €12,450 = 19%
€12,450 to €20,200 = 24%
€20,200 to €35,200 = 30%
€35,200 to €60,000 = 37%
€60,000 to €300,000 = 45%
€300,000 + = 47%
TAX RATE PERCENTAGES FOR TAXABLE SAVINGS/INVESTMENTS :
From
€0 to €6,000 = 19%
€6,000 to €50,000 = 21%
€50,000 and Onwards = 23%
Answer: Yes, you should. The Spanish laws are different from the UK laws in this area but it is possible to require in your Spanish Will that your wishes under your English Will take precedence.
Answer: Yes, if you have any income not taxed at source but arising in Spain you need to make a Return to the Spanish Tax authorities. Any tax arising in Spain on rental profits, is offset in full against your UK tax by making the appropriate claim within your UK Tax Return.
Answer: Income tax is payable usually in 2 installments: 60% on 30th June after the calendar year to which it relates and 40% on 31st October. For those taxpayers who also have a Wealth Tax liability, that payment is due in full on 30th June.
The easiest way to pay this is to advise the Tax Office of your Spanish bank account details and they will take the money on the due dates.
Answer: Despite the many and various views of experts you will read, the simple answer is that nobody knows precisely how this will affect UK Nationals who are resident in Spain and UK Nationals who are not resident in Spain but have Spanish assets with Spanish income arising. The one thing that is certain is that life will still go on, probably with very little obvious change i.e. the present tax laws are still likely to apply both as to whether or not you are classed as Spanish Tax resident and on how your Spanish income is taxed.... watch this space!
Answer: Yes we can! Your property agent should have dealt with this for you but, if anything has been overlooked, we are happy to help. See our section on ' Translation Services'.
Answer: If you are a Spanish Tax resident, yes you do as part of your Spanish Income Tax Return Modelo 100, which declares your world income. Any tax paid in Gibraltar should be credited on your Spanish Return. A Tax Return must be submitted in Gibraltar and tax is paid there as a Non-resident Landlord. (17% on the first £16000 of rental income, 39% thereover). The equivalent value in Euros of the cost of your Gibraltar property also needs declaration as part of your Spanish Wealth Tax Return Modelo 714.
If you are Non-Spanish Tax resident, you have no requirement to declare the income to the Spanish tax authorities even if you have a further Spanish investment property with income arising for which you already make a Return. However, the Gibraltar rentals should be declared as part of your UK Tax Return of world income.
Answer: If your letting is for more than two months, the new rules do not apply and you can begin as soon as you are ready without further permit. If your letting is for less than two months, it is classed as holiday lettings and the new rules apply. You will need the licence BEFORE you commence letting.
Answer: We aim to be a 'helping hand' to you in any way we can. If you receive any communication in Spanish, or have any other circumstance that requires attendance with Spanish as the spoken language, get in touch with us and we will help, research, and advise as to what you should do.
Answer: No we don't but we can certainly recommend a reputable long established firm of Spanish Chartered Accountants to assist in this respect with whom we have worked for 16 years.
Answer: Despite what certain experts tell you, there is no requirement in Spain for conveyancing to be conducted solely by a Spanish Abogado. It is much more important to engage someone who not only is fully aware of the conveyancing regulations in Spain, as we are, and fully able to conduct all transactions in English with you to avoid misunderstanding. We have speedy access to local Notary services and are professionally insured for all our work for your complete reassurance.
Answer: See our section on Fees. No two person's tax affairs are the same but, for simple cases, the likely cost will be the figure quoted in that section. If your affairs are more complicated, we will always agree a price with you first so that you have certainty of cost.
