Join Talk Quesada
Welcome to Talk Quesada! My name's Alex and this is my website all about Ciudad Quesada in Spain. Talk Quesada is free to sign up and use so register below!
Residency and UK Earnings
Re: Residency and UK Earnings
by Roy Dainty » Tue Jun 26, 2018 9:42 am
As ever Marcliff, thank you for your knowledgeable and useful advice. This past year I have been going through all of the changes to becoming Resedencia and paying tax in Spain on my UK pensions. Yesterday, I returned (via Abaco) my first tax return as a Spanish resident. I am now in the position of paying tax on all of my incomes both in the UK and then again in Spain. This is not a "double whammy" as I can initiate the formal process of informing the UK that I am a 'Fiscal Resident' of Spain and thus recovering the overlapped tax. I will then only be taxed in Spain. This may take a few months. Fortunately, I can afford the temporary double tax but I wanted to forewarn anyone else going through the Resedencia process that they should plan for the possibility of paying tax in both jurisdictions whilst everything proceeds through the required formal processes. It is very possible, though I don't know, that there is an optimum time to minimise this potential overlap. Additionally, I could have initiated obtaining my formal Fiscal Resedencia immediately I had my Resedencia. I would then have been in a position to send everything off to the UK authorities without delay. Thus, I hope this helps others in their deliberations.
-
Roy Dainty - Posts: 93
- Joined: Wed Mar 04, 2015 10:35 am
- Location: Pueblo Bravo
- Which part of Spain are you from?: Dona Pepa
- Gender: Male
Re: Residency and UK Earnings
by Pete31 » Sun Jul 01, 2018 2:08 pm
QUESTION, if I sold my house in the UK and put the money in my UK bank will I have to pay Spanish tax on that if I became Resident, in Spain as I will not have to pay tax on that in the UK banks?
Thanks Pete.
Thanks Pete.
-
Pete31 - Posts: 1620
- Joined: Mon Oct 12, 2015 1:54 pm
- Which part of Spain are you from?: Entra Naranjos
- Gender: Male
Re: Residency and UK Earnings
by marcliff » Sun Jul 01, 2018 3:12 pm
You would be liable to capital gains tax in Spain if you are resident here. Same as you would be liable to inheritance tax if you inherited in UK.
Which is why renting here for 6 months, taking out residency and then selling your UK property is not a good idea.
Best to go back after 6 months, sell your property in UK and then come back and take out residency as you would not be liable to CGT.
We bought a house here, kept going back to UK (avoiding the 183 day rule) and sold it in December then came back to Spain and took out residency in the following January.
With respect to CGT in UK if you are an expat. The rules in UK have recently changed and, if you are an expat in the EU and have property in UK, if you sell it after April 6th 2015 (retrospective as the rules came in this year) then you could be liable to CGT of 28% in UK.
From a solicitors site
The new rule, which came into effect on April 6, 2015, will particularly affect British Expats and non-UK residents with UK property, especially those with buy-to-let agreements which generate an income. This new rule will mean that the sale of a UK property, which currently attracts no UK capital gains tax could incur a UK capital gains tax bill in the region of 28% on any gains made after April 6th 2015, depending on your personal circumstances.
It is recommended that people who own UK property arrange for any properties to be 'officially' valued (either by estate agent or property surveyor) as soon as possible to establish an accurate understanding of any gains which have subsequently been made.
If you are a non-UK resident, or expat, with a UK property it is important that you understand the new Capital Gains Tax Rules and the full array of options which could reduce your exposure to all types of UK and international taxation - now and in the future.
Apart from death there's only one certainly in life, taxes.
Which is why renting here for 6 months, taking out residency and then selling your UK property is not a good idea.
Best to go back after 6 months, sell your property in UK and then come back and take out residency as you would not be liable to CGT.
We bought a house here, kept going back to UK (avoiding the 183 day rule) and sold it in December then came back to Spain and took out residency in the following January.
With respect to CGT in UK if you are an expat. The rules in UK have recently changed and, if you are an expat in the EU and have property in UK, if you sell it after April 6th 2015 (retrospective as the rules came in this year) then you could be liable to CGT of 28% in UK.
From a solicitors site
New Capital Gains Tax rules affecting British expats and non-UK residents with UK property
The UK tax loophole which allowed overseas investors and British Expats to avoid Capital Gains Tax (CGT) on the sale of residential property is now closed.The new rule, which came into effect on April 6, 2015, will particularly affect British Expats and non-UK residents with UK property, especially those with buy-to-let agreements which generate an income. This new rule will mean that the sale of a UK property, which currently attracts no UK capital gains tax could incur a UK capital gains tax bill in the region of 28% on any gains made after April 6th 2015, depending on your personal circumstances.
It is recommended that people who own UK property arrange for any properties to be 'officially' valued (either by estate agent or property surveyor) as soon as possible to establish an accurate understanding of any gains which have subsequently been made.
If you are a non-UK resident, or expat, with a UK property it is important that you understand the new Capital Gains Tax Rules and the full array of options which could reduce your exposure to all types of UK and international taxation - now and in the future.
Apart from death there's only one certainly in life, taxes.
-
marcliff - Posts: 9694
- Joined: Sat Mar 03, 2012 4:41 pm
- Location: Doña Pepa 2
- Which part of Spain are you from?: Dona Pepa 2
- Gender: Male
Page 2 of 2 • 1, 2
13 posts
• Page 2 of 2 • 1, 2
Related topics
-
- Similar Topics
- Replies
- Views
- Last post
-
-
Residency
by rainbow54 » Tue Apr 02, 2024 1:07 pm in Quesada general discussion - 4
- 329
-
by Barry martyn
Tue Apr 02, 2024 5:09 pm
-
Residency
-
-
Leaving Spain during Temporary Residency
by marcliff » Tue Aug 01, 2023 7:44 pm in After Brexit and the EU: Living, holidaying and moving to Spain - 1
- 521
-
by Darro
Wed Aug 02, 2023 4:40 am
-
Leaving Spain during Temporary Residency
-
-
EU Update to TCN Long Term Residency Rules.
by Darro » Wed Dec 13, 2023 8:20 pm in Off topic - 0
- 204
-
by Darro
Wed Dec 13, 2023 8:20 pm
-
EU Update to TCN Long Term Residency Rules.
Return to Residency in Spain: padron, residencia and passport advice
Who is online
Users browsing this forum: No registered users and 1 guest
Login
Find in Quesada
Quesada pages
Quesada discussion
- Quesada general discussion
- Banking and finances
- Broadband, Wifi, Phone and TV
- Buses and public transport in and around Quesada
- Driving to Spain / Car hire in Spain / Buying and owning a car in Spain
- Fiestas in Quesada
- Flights, baggage and airports
- Health services in Quesada
- Insurances and wills in Spain
- Items for sale and wanted in and around Quesada
- Interesting articles about Spain
- Jobs and careers in Quesada
- Lost and found in Quesada
- Market days
- Places to go for free Wi-Fi
- Recommended restaurants / cafes / bars
- Recommended Tradesmen and Companies
- Residency in Spain: padron, residencia and passport advice
- Safety / security information and property in Spain hints and tips
- Taxes in Spain: Suma, NIE and general tax advice
- Taxis in Quesada
- Things to do and places to go in and around Quesada
- Utilities in Spain: Electric, gas and water recommendations and advice
- Weather in Quesada
- Where to buy things in and around Quesada
- Where to hire things in and around Quesada
Properties discussion
Businesses and places in Quesada
- Bars and pubs in Quesada
- Beaches near Quesada
- Beauticians / Beauty salons in Quesada
- Bedding and soft furnishings shops in Quesada
- Butchers in Quesada
- Car dealers in Quesada: new and used car dealers
- Car garages, mechanics, tyre fitter centres in Quesada
- Car hire in Quesada
- DIY / Bricolage / Ferreteria stores in Quesada
- Equipment hire centers in Quesada
- Estate agents in Quesada
- Furniture shops in Quesada
- Garden centres and garden furniture shops in Quesada
- Golf Courses in Quesada
- Grills / gates / metal items shops in Quesada
- Hairdressers in Quesada
- Hotels, guest houses and bed and breakfasts in Quesada and nearby
- Internet service providers that cover Quesada
- Launderettes / dry cleaners in Quesada
- Markets in Quesada
- Medical / Health centers in Quesada
- Pet shops in Quesada
- Pharmacies / Chemist shops in Quesada
- Restaurants in Quesada
- Shopping centres in Quesada
- Sports centres and gyms in Quesada
- Supermarkets in Quesada
- Swimming pool services in Quesada
- Town Halls (Ayuntamientos) in Quesada
- Waterparks/Aquaparks in Quesada
- TalkQuesada » Board index
- The team • Delete all board cookies • All times are UTC [ DST ]
- Our other websites:
- Costa Blanca forum
- Costa Calida forum
- Costa del Sol forum
- Costa de Almeria forum
- Costa de la Luz forum
- Costa Dorada forum
- Costa Brava forum
- UK forum
- Jobs in the UK
- Our policies:
- Privacy policy
- User agreement
- Content policy
- Website created and operated by JSM Forum Websites