Anyone spending more than 183 days a year in Spain is considered to be tax resident, however if you only have income from one source of less than 22.000€ you do not need to submit a Spanish tax return. If you receive income from two or more sources and earn more than 12.000€ you are obliged to declare, if you receive interest from investments, deposits etc you will also have to comply regardless of the amount.
The Spanish tax year is the same as the calendar year, the deadline to submit is June the 30th and if you are liable for tax and wish to pay by direct debit from your bank account it must be filed by June the 25th, you can even split the payment by paying 60% in June and the rest in November.
Many people are under the impression that by taking up residency in Spain they will automatically be contacted by the tax authorities in order to comply with a declaration… but no, the onus is on you! Once in the Spanish tax system, it is possible to apply for a “certificate of fiscal residence” which is needed in order to receive UK pensions without deduction of tax at source and to sell a property without suffering a retention of 3% of the selling price.
Now is the time to make the declaration for the calendar year 2015. Apart from income you are also obliged to declare rental income from properties and sales of property during the calendar year 2015. The Spanish Government is exchanging information with other authorities so they will be aware if you are receiving a pension in the UK and not declaring it, if they do you will receive a communication with the amount of tax to be paid plus a fine.
If you have any doubts on what needs declaring, we offer friendly and efficient help together with professional advice to make the tax process as hassle-free as possible. Remember our first consultation is free.