# Tax & Red Tape In Spain



## paul44 (May 19, 2009)

I have been reading with both amusement and fear over the last couple of weeks and probably longer regarding new tax rules and the mountains of Red Tape folks have to go through.I'm seriously questioning if moving to Spain full time would be in my interest whilst I don't work I do have a lot of liquid assets that might be at risk and I'm not about to be that stupid looks like it will just be long visits not lasting longer than 3 months for me and that's as a direct result of all I have been reading 

The fact that once you report anything as an asset you are leaving yourself wide open once the rules are changed/bent as they surely will do in the future


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## xabiaxica (Jun 23, 2009)

paul44 said:


> I have been reading with both amusement and fear over the last couple of weeks and probably longer regarding new tax rules and the mountains of Red Tape folks have to go through.I'm seriously questioning if moving to Spain full time would be in my interest whilst I don't work I do have a lot of liquid assets that might be at risk and I'm not about to be that stupid looks like it will just be long visits not lasting longer than 3 months for me and that's as a direct result of all I have been reading
> 
> The fact that once you report anything as an asset you are leaving yourself wide open once the rules are changed/bent as they surely will do in the future


you're not the only one.......


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## CapnBilly (Jun 7, 2011)

Whilst I agree with that, not reporting them doesn't mean you're not liable to any new tax rules they introduce, and you can only can only do two stays of 3 months in a year, otherwise you're a tax resident.

Having said all that, have a read of the new Statutory Residency Test that comes into effect in the UK in April 2013.


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## paul44 (May 19, 2009)

CapnBilly said:


> Whilst I agree with that, not reporting them doesn't mean you're not liable to any new tax rules they introduce, and you can only can only do two stays of 3 months in a year, otherwise you're a tax resident.
> 
> Having said all that, have a read of the new Statutory Residency Test that comes into effect in the UK in April 2013.


Well what happens in the UK doesn't really affect me but what is it and where can we see it do you have a link?


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## Stravinsky (Aug 12, 2007)

paul44 said:


> I have been reading with both amusement and fear over the last couple of weeks and probably longer regarding new tax rules and the mountains of Red Tape folks have to go through.I'm seriously questioning if moving to Spain full time would be in my interest whilst I don't work I do have a lot of liquid assets that might be at risk and I'm not about to be that stupid looks like it will just be long visits not lasting longer than 3 months for me and that's as a direct result of all I have been reading
> 
> The fact that once you report anything as an asset you are leaving yourself wide open once the rules are changed/bent as they surely will do in the future


You're not the only one!


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## CapnBilly (Jun 7, 2011)

paul44 said:


> Well what happens in the UK doesn't really affect me but what is it and where can we see it do you have a link?


Sorry, I didn't notice you were from Ireland. If you're interested, this is the link.

What I would also say, is that if you haven't already, you should read any Double Taxation Agreement between Spain and Ireland.


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## 90199 (Mar 21, 2010)

I asked about the declaration of assets for foreign residents at our local tax office. They have not yet been furnished with details of the new regulations, but told us not to worry because there is plenty of time......................


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## CapnBilly (Jun 7, 2011)

Hepa said:


> I asked about the declaration of assets for foreign residents at our local tax office. They have not yet been furnished with details of the new regulations, but told us not to worry because there is plenty of time......................


Just to be clear, the declaration can only be submitted online, so there is no paper version to complete. The online model has been on the Hacienda website since the end of January.


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## 90199 (Mar 21, 2010)

CapnBilly said:


> Just to be clear, the declaration can only be submitted online, so there is no paper version to complete. The online model has been on the Hacienda website since the end of January.


Does anyone have a link?

I wonder how those who do not use the internet will complete?


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## CapnBilly (Jun 7, 2011)

Hepa said:


> Does anyone have a link?
> 
> I wonder how those who do not use the internet will complete?


They will have to use a gestoria. Also, to access the model you need a digital id. This is the link 

Agencia Tributaria - 720


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## 90199 (Mar 21, 2010)

CapnBilly said:


> They will have to use a gestoria. Also, to access the model you need a digital id. This is the link
> 
> Agencia Tributaria - 720


Thanks for that. Cannot make a lot of sense there.


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## CapnBilly (Jun 7, 2011)

Hepa said:


> Thanks for that. Cannot make a lot of sense there.


The first link *Diseño de registro* is a pdf showing all the differnt boxes. and how to complete them. Its very similar to an IT specification.

The second link* Presentación electrónica* is to the model, but it will only let you access it if you have digital ID installed on your computer. They're quite easy to obtain. Details from here 


The final link *Preguntas frecuentes* is a list of Questions and Answers about the reporting requirements.


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## 90199 (Mar 21, 2010)

CapnBilly said:


> The first link *Diseño de registro* is a pdf showing all the differnt boxes. and how to complete them. Its very similar to an IT specification.
> 
> The second link* Presentación electrónica* is to the model, but it will only let you access it if you have digital ID installed on your computer. They're quite easy to obtain. Details from here
> 
> ...


Thanks once again, I shall have to study this and talk to my friend who works in the local tax office.

I can remember when life was not so complicated


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## gus-lopez (Jan 4, 2010)

CapnBilly said:


> Sorry, I didn't notice you were from Ireland. If you're interested, this is the link.
> 
> What I would also say, is that if you haven't already, you should read any Double Taxation Agreement between Spain and Ireland.


96 pages which could & should be simplified to 
" You work in the UK, you pay tax & soc.sec. here " end of story. 

95 pages saved 00's of trees reprieved, simple. No arguments about where you live, days in country, house, car , etc. You work there you pay there.


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