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It is apparent that many expats are unclear
as to where they stand when it comes to
domicile, general and inheritance tax. All EU
nationals have the right to live in Spain if
they wish. However, everyone must be fully
aware of their resident status and tax
situation. The law regarding ‘residencias’
changed in 2007. This has legal and practical
implications for everybody. Obtaining and
proving resident status is vital for Tax.
Obtaining resident status requires you to
present yourself to a local police station
which has a foreigner’s office, not many do!
After filling out various forms, and a lot of
waiting, you will be presented with a
certificate. There are 2 important things to
note. Firstly, the certificate is NOT a form of
identification (it simply confirms you reside in
Spain), and secondly, you’ll probably need to
queue for hours before the office opens!
Those deemed to be resident in Spain
* Students
* EU national dependants of an EU national
* People living and working legally in Spain
and paying Spanish social security.
* Fully declared self-employed workers who
are paying Spanish social security.
*Retired workers who have lived in Spain for
more than 3 years and paid Spanish social
security for the previous 12 months.
as to where they stand when it comes to
domicile, general and inheritance tax. All EU
nationals have the right to live in Spain if
they wish. However, everyone must be fully
aware of their resident status and tax
situation. The law regarding ‘residencias’
changed in 2007. This has legal and practical
implications for everybody. Obtaining and
proving resident status is vital for Tax.
Obtaining resident status requires you to
present yourself to a local police station
which has a foreigner’s office, not many do!
After filling out various forms, and a lot of
waiting, you will be presented with a
certificate. There are 2 important things to
note. Firstly, the certificate is NOT a form of
identification (it simply confirms you reside in
Spain), and secondly, you’ll probably need to
queue for hours before the office opens!
Those deemed to be resident in Spain
* Students
* EU national dependants of an EU national
* People living and working legally in Spain
and paying Spanish social security.
* Fully declared self-employed workers who
are paying Spanish social security.
*Retired workers who have lived in Spain for
more than 3 years and paid Spanish social
security for the previous 12 months.
| Costa Blanca Lawyers - Plain speaking Spanish residency advice in English from English Lawyers |
Those NOT deemed resident in Spain include
* Pensioners retiring to Spain
* Dependants of an EU citizen who are
themselves non-EU citizens
* Anyone living in Spain but do not earn an
income (Living off savings)
You can remain as a tourist in Spain but
become a fiscal resident if you stay for more
than 183 days in the tax/calendar year. This
involves submitting an income tax return. You
will pay tax but won’t receive any of the
benefits associated with being a resident.
If you are resident in Spain, you’ll be liable
for income, capital gains and inheritance tax
(IHT) on worldwide assets. This is in addition
to other tax liabilities such as IVA (VAT) and
gift taxes. Gift and IHT is payable by the
receiver!
If a property is jointly owned and your Will
leaves everything to your spouse, they will
have to pay IHT on your 50% share whilst
Residents are entitled to a 95% reduction of
the inheritance tax payable by non-residents.
Valencia region IHT rules changed in 2007 for
residents, non-residents do not benefit
Our residency experts will help you with all
legal aspects to establish yourself here, we’ll
even stand in the queues for you! Call us now
* Pensioners retiring to Spain
* Dependants of an EU citizen who are
themselves non-EU citizens
* Anyone living in Spain but do not earn an
income (Living off savings)
You can remain as a tourist in Spain but
become a fiscal resident if you stay for more
than 183 days in the tax/calendar year. This
involves submitting an income tax return. You
will pay tax but won’t receive any of the
benefits associated with being a resident.
If you are resident in Spain, you’ll be liable
for income, capital gains and inheritance tax
(IHT) on worldwide assets. This is in addition
to other tax liabilities such as IVA (VAT) and
gift taxes. Gift and IHT is payable by the
receiver!
If a property is jointly owned and your Will
leaves everything to your spouse, they will
have to pay IHT on your 50% share whilst
Residents are entitled to a 95% reduction of
the inheritance tax payable by non-residents.
Valencia region IHT rules changed in 2007 for
residents, non-residents do not benefit
Our residency experts will help you with all
legal aspects to establish yourself here, we’ll
even stand in the queues for you! Call us now
Living, working and paying Tax in Spain -- Are you really resident in Spain?
Do you know if you
need to pay tax
and Social
Security?
Are you liable for
inheritance tax?
The answer is
probably yes!
What are the
implications if
you want to be
self-employed?
How do you legally
become a resident?
Do you have to
become a resident?
Student rights
What is IHT ?
What does it
mean to you?
need to pay tax
and Social
Security?
Are you liable for
inheritance tax?
The answer is
probably yes!
What are the
implications if
you want to be
self-employed?
How do you legally
become a resident?
Do you have to
become a resident?
Student rights
What is IHT ?
What does it
mean to you?
Residency
| NORTH OFFICE ALFAZ DEL PI Tel 966 860 555 Calling From The UK? 3p per minute anytime Tel 08444 257 633 Contact SOUTH OFFICE SAN FULGENCIO Tel 966 727 931 Contact |
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Tel 966 814 506