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!
Capital gains tax and local tax return
Capital gains tax and local tax return
by Luckjockey » Wed Jan 24, 2024 5:21 am
Hi. As with many of you on here, I am expected to submit a tax return in Spain every year. At the moment I have a private pension which is exempt from taxation in Spain as the tax is paid in the UK. However, has anyone experienced how the interest made on savings in the UK is potentially affected when submitting a Spanish tax return? Obviously capital gains tax is expected to be paid on any interest made on UK investments in the UK. But is it exempt in Spain once the tax has been deducted in Britain?
- Luckjockey
- Posts: 43
- Joined: Wed Dec 20, 2023 11:38 pm
- Which part of Spain are you from?: Quesada
Re: Capital gains tax and local tax return
by Shiva » Wed Jan 24, 2024 7:24 am
Tax is due in Spain on all your worldwide income ( the exception being UK government pensions which are always taxed in UK, although even then the total income from these still counts towards determining your tax band in Spain). Your private pension is not actually exempt from taxation in Spain, although under the double taxation agreement between UK and Spain you may ask the Spanish authorities for relief on this if tax already paid in UK. The same with income on interest on savings and investments. If you have paid uk tax you can ask for relief in Spain on tax paid in UK. Also remember that all such income should be declared, even if tax free in UK ( income through ISAs , premium bond wins etc are tax free in uk but tax still needs to be paid on these in Spain.) Or you can pay all the tax in Spain and claim tax paid in the UK back from the UK, again under the dual tax agreement.
-
Shiva - Posts: 1569
- Joined: Sat May 16, 2015 12:46 pm
- Gender: Female
Re: Capital gains tax and local tax return
by Shiva » Wed Jan 24, 2024 7:31 am
And if this is your first year doing tax in Spain, while the annual Spanish tax return not due until June, if you have more than 50k euros worth of assets in UK ( or anywhere outside of Spain - savings, investments, property etc) don't forget you'll need to declare all these and submit the modelo 720 by the end of March.
-
Shiva - Posts: 1569
- Joined: Sat May 16, 2015 12:46 pm
- Gender: Female
Re: Capital gains tax and local tax return
by marcliff » Wed Jan 24, 2024 7:32 am
Y
Last edited by marcliff on Fri Mar 08, 2024 8:09 am, edited 1 time in total.
-
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
Re: Capital gains tax and local tax return
by Luckjockey » Wed Jan 24, 2024 9:25 am
Thanks. Can I break this down for more information please?
1. My UK pension is a government pension. I am not of retirement age yet and therefore do not receive a state pension. Under ‘Schengen’, and although I understand I need to declare it in Spain, will I be taxed on it in Spain?
2. I have UK premium bonds. again, I understand there declarative, however, will I likely be taxed in Spain on any win even though tax is exempt in the UK?
3. Bank interest. I have a regular income from bank interest from the UK. Declarable in Spain-yes. Likelihood of being taxed in Spain?
Thanks
1. My UK pension is a government pension. I am not of retirement age yet and therefore do not receive a state pension. Under ‘Schengen’, and although I understand I need to declare it in Spain, will I be taxed on it in Spain?
2. I have UK premium bonds. again, I understand there declarative, however, will I likely be taxed in Spain on any win even though tax is exempt in the UK?
3. Bank interest. I have a regular income from bank interest from the UK. Declarable in Spain-yes. Likelihood of being taxed in Spain?
Thanks
- Luckjockey
- Posts: 43
- Joined: Wed Dec 20, 2023 11:38 pm
- Which part of Spain are you from?: Quesada
Re: Capital gains tax and local tax return
by Philipb1407 » Wed Jan 24, 2024 9:39 am
I am not a resident in Spain, I own a property in Spain. I also have a reasonable bank balance both in Spain and the UK.
I pay 45% tax on my interest in the UK. My pay and dividends are UK taxed as is my private pension.
I get no interest on my Spanish bank savings
As a non resident do I pay tax on my wealth? Do I even have to declare it in Spain? Do I have to declare my cash in Spain!
I pay 45% tax on my interest in the UK. My pay and dividends are UK taxed as is my private pension.
I get no interest on my Spanish bank savings
As a non resident do I pay tax on my wealth? Do I even have to declare it in Spain? Do I have to declare my cash in Spain!
- Philipb1407
- Posts: 444
- Images: 0
- Joined: Sat Jun 04, 2016 9:08 am
Re: Capital gains tax and local tax return
by marcliff » Wed Jan 24, 2024 10:25 am
F
Last edited by marcliff on Fri Mar 08, 2024 8:10 am, edited 1 time in total.
-
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
Re: Capital gains tax and local tax return
by Bee » Wed Jan 24, 2024 10:57 am
Philipb1407 wrote:I am not a resident in Spain, I own a property in Spain. I also have a reasonable bank balance both in Spain and the UK.
I pay 45% tax on my interest in the UK. My pay and dividends are UK taxed as is my private pension.
I get no interest on my Spanish bank savings
As a non resident do I pay tax on my wealth? Do I even have to declare it in Spain? Do I have to declare my cash in Spain!
Years ago all non-residents had to pay income tax and wealth tax on our properties and any other assets in Spain. Then the Spanish Government decided that only those non-residents with assets over a certain figure would pay Wealth tax. The figure now is €700,000.
Bee
- Bee
- Posts: 3346
- Joined: Sun Dec 10, 2017 1:07 am
- Which part of Spain are you from?: Torrevieja
- Gender: Female
Re: Capital gains tax and local tax return
by marcliff » Wed Jan 24, 2024 11:25 am
[
Last edited by marcliff on Fri Mar 08, 2024 8:11 am, edited 1 time in total.
-
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
Re: Capital gains tax and local tax return
by Angela17 » Wed Jan 24, 2024 11:32 am
Really interesting thread. Can I just ask a related question please? We have premium bonds, is there an amount of winnings that you need to declare anything over ie even if we win £25?
- Angela17
- Posts: 458
- Joined: Sun Jun 11, 2017 9:03 pm
- Which part of Spain are you from?: Quesada
- Gender: Female
Page 1 of 3 • 1, 2, 3
25 posts
• Page 1 of 3 • 1, 2, 3
Related topics
-
- Similar Topics
- Replies
- Views
- Last post
-
-
Capital Gains Tax
by JustGinger » Fri Feb 09, 2024 5:13 pm in Quesada general discussion - 6
- 280
-
by MALTHOM
Sat Feb 10, 2024 9:12 am
-
Capital Gains Tax
-
-
CAPITAL GAINS TAX ON SALE OF UK FAMILY HOME
by EdOD » Thu Feb 22, 2024 2:16 pm in Taxes in Spain: Suma, NIE and general tax advice - 1
- 253
-
by Bee
Tue Mar 26, 2024 11:58 am
-
CAPITAL GAINS TAX ON SALE OF UK FAMILY HOME
-
-
Torrevieja to Benidorm return
by faolteam » Tue Jan 16, 2024 12:22 pm in Quesada general discussion - 2
- 267
-
by jpeg
Tue Jan 16, 2024 1:59 pm
-
Torrevieja to Benidorm return
-
-
PSI consultants - tax return Q4 2023
by pjdkca » Sat Feb 03, 2024 4:56 pm in Quesada general discussion - 1
- 220
-
by jpeg
Sat Feb 03, 2024 4:57 pm
-
PSI consultants - tax return Q4 2023
-
-
Local school
by Quesadacurious » Mon May 22, 2023 1:56 pm in Quesada general discussion - 0
- 210
-
by Quesadacurious
Mon May 22, 2023 1:56 pm
-
Local school
Return to Quesada general discussion
Who is online
Users browsing this forum: Bing [Bot], Darro and 35 guests
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