Talk Quesada forum

we have friends who own a house here, but are non residemt. She is an ex teacher so her teachers pension is taxed at source in the UK, is there any advantage in her having her state pension sent directly to her Spanish bank then paying tax on it here in Spain, at the moment it is added to her UK teachers pension and she pays tax on the whole amount

If she's non resident how can she pay tax here? If she becomes resident then she will not have tax deducted at source in UK as it's not a government pension (teacher's pensions are a private scheme) but she will then get taxed on both here in Spain.
Only exceptional circumstances allow you to be tax resident in two countries and I don't believe that counts.

Is it possible to have residencia but not, fiscal residencia?

I am tax resident in the UK and in Spain, my teachers pension is taxed in the UK, no other option, and my state pension is taxed in Spain, but I am fiscal reident here.

donaduo wrote:Is it possible to have residencia but not, fiscal residencia?

No, you become a fiscal resident in Spain by default once you have lived here for 183 days in any one tax year.

Spannygranny wrote:I am tax resident in the UK and in Spain, my teachers pension is taxed in the UK, no other option, and my state pension is taxed in Spain, but I am fiscal reident here.

I think we're in danger of debating semantics here. As you say, you're a fiscal resident in Spain, as am I. I have a military pension which has to be taxed in the UK, but I don't submit tax returns in the UK. I receive an annual statement of tax deducted at source on my military pension from HMRC and I pass this to the Spanish tax authorities, who take into account the tax I've paid in the UK when calculating my Spanish tax liability when I submit my tax return here.

Paulr wrote:

donaduo wrote:Is it possible to have residencia but not, fiscal residencia?

No, you become a fiscal resident in Spain by default once you have lived here for 183 days in any one tax year.

That is not correct you only become a Fiscal Resident when you have completed and entered a Tax Return to the Tax Office otherwise you are just a Resident

jpeg wrote:

Paulr wrote:

donaduo wrote:Is it possible to have residencia but not, fiscal residencia?

No, you become a fiscal resident in Spain by default once you have lived here for 183 days in any one tax year.

That is not correct you only become a Fiscal Resident when you have completed and entered a Tax Return to the Tax Office otherwise you are just a Resident

I'm afraid you are not correct jpeg: see extract below from Blevins Franks' website, international tax advisors, and note the sentence I have highlighted in bold text:

"Before you can start your tax planning, you need to be aware of Spain’s domestic rules for tax residency. This also applies for those who have not necessarily moved here, but spend much time or have a home here. You may be liable for Spanish tax without realising it.

If you fulfil Spain’s resident rules, you are liable to Spanish income, capital gains and wealth taxes on your worldwide assets, as well as subject to Spanishsuccession tax (inheritance and gifts tax) rules. You are also liable for incidental tax liabilities such as IVA (VAT) and local taxes.

You are resident in Spain for tax purposes if any of the following apply:

1. You spend more than 183 days in Spain in one calendar year. This is whether or not you take out a formal residence permit. These days do not have to be consecutive. Temporary absences from Spain are ignored for the purpose of the 183-day rule unless it can be proved that you are habitually resident in another country for more than 183 days a calendar year,

2. Your “centre of economic interests” is in Spain, i.e. the base for your economic or professional activities is in Spain.

3. Your “centre of vital interests” is in Spain – i.e. your spouse lives here (and you are not legally separated), and/or your dependent minor children do. In this case you are presumed Spanish resident, unless proven otherwise, even though you may spend less than 183 days per year in Spain."

Of course that statement is correct but it does not make you a Fiscal Resident until you have filed a tax return that's what I said also unless you file the return you will not be eligible for the advantages if you sell your property ( Its what I do as an IFA )

http://www.abacoadvisers.com/spain-expl ... y-in-spain

Abaco are my tax advisers and explained to me the point of the 183 day rule. If you've lived here more than 183 days in any tax year and do not file a Spanish tax return for that tax year, you're potentially evading tax - punishment for which I think would be far more punitive than not being "eligible for the advantages if you sell your property". You make it sound like filing a Spanish tax return is optional - it isn't, if you meet any of the criteria in my previous post.