Capital gains tax and local tax return

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?

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.

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.

Y

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

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!

F

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

[

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?