Taking into account the consequences that any omission or error implies, the correct taxation and the payment of taxes has become a key issue for any person with economic ties in Spain.
For reasons that are not well understood, it is a matter in which, too often, non-nationals, residents or not, are guided more by 'friends' comments than by the advice of professionals.
Our job is to make sure our clients have no problems. To achieve this we, on your behalf, will pay the right amount of tax at the right time. So you don't worry.
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Resident Tax
If you live in Spain for more than 183 days in a calendar year you are deemed to be a tax resident. This means that you must pay your taxes in Spain and not the UK or any other country you have lived.
There are only a few exceptions to this which are described in the Personal Income Tax Law (IRPF) or in the international double taxation conventions.If you are told differently it is not true.
Every year between April and June you must make your tax declaration.
So that you comply with this we ask our clients for information regarding their income and we prepare the details and have them confirmed by our clients before sending the declaration by internet to the State Tax Administration Agency (AEAT).
You are informed that any property or investment abroad with a value of more than 50,000 Euro must be declared.
Very important, do not forget that residents for tax purposes are ALL of us who reside in Spain.
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Non-Resident Tax
If it is usual for a resident to believe that he does not have to pay taxes in Spain because he pays them in his country, more often a non-resident believes that he does not have to pay taxes. But the truth is that yes, you have to pay taxes. The most general assumption that gives rise to the obligation to declare this tax is given by the fact of owning a property in Spain.
Every non-resident person who owns a property is obliged to present a declaration between January 1 and December 31 corresponding to the previous year. It is the same case of the income of residents but in this tax the term to present the declaration is the following year.We think that the money is better in the pocket of our clients than in the pocket of the Government and for that reason we make the presentations of the declarations of our clients between November and December every year. Except in exceptional cases the copy of the deed of purchase and the receipt of the Tax on Real Estate (IBI) is enough to prepare the model.
First we send a draft of the tax return to the client by e-mail and we ask the client to agree the figures.
Once they have been confirmed the declaration is prepared and submitted to the AEAT.