# Non owner, non worker!!



## Rabbitcat (Aug 31, 2014)

Amongst the wealth of info and advice I have found on here is the recurring suggestion that one should definitely rent for a while before even considering buying.

For someone doing just that , renting for say 12 months and not working what would be their tax liability?

I realise that a declaration would have to be made after day 183 but with no property or job is one still somehow taxed? Thanks.


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## snikpoh (Nov 19, 2007)

Taxed on what .. ?

You will still have to fill out a tax form but will, in all probability, not pay any tax.


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## Rabbitcat (Aug 31, 2014)

Well I thought that might be the case. It's just my income is a Civil Service pension ( not state) and it has to be taxed in UK so was guessing I wouldn't pay anything in Spain


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## snikpoh (Nov 19, 2007)

Rabbitcat said:


> Well I thought that might be the case. It's just my income is a Civil Service pension ( not state) and it has to be taxed in UK so was guessing I wouldn't pay anything in Spain


I may be wrong but I think it still has to be declared here and you then offset any tax already paid in UK.

Others may know better ...


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## thrax (Nov 13, 2008)

You won't and cannot pay any tax on a UK Civil Service pension here in Spain. It must be offset against any other earnings you might have but if you don't have any other income you won't pay any tax. Period.


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## alborino (Dec 13, 2014)

snikpoh said:


> I may be wrong but I think it still has to be declared here and you then offset any tax already paid in UK.
> 
> Others may know better ...


Rabbitcat found this interesting but you need to talk to the horse's mouth (HMRC who are incredible helpful in my experience) of course.

"You will not be liable to UK tax on your UK pension if you live in a country which has a double taxation agreement with the UK. Under most such agreements pensions are only taxed in the country where you are resident. Where that is the case *and you make a claim for relief*, the Inland Revenue will authorise payment of your pension without deduction of tax. If there is no relief under a double taxation agreement, tax will normally be deducted from your pension before it is paid."

"Government-sponsored schemes such as the civil service pension will be subject to the UK taxation regime even if you are abroad. Jonathan Springroach, a financial adviser with Towry Law International, says: "The government scheme remains taxed in the UK. *When you are filing your tax return in the new country you need to inform local tax authorities not to aggregate tax on to local tax returns*. The same applies for state pensions."

"It used to be possible to receive your UK pension without deduction of tax in the UK using Form FD9. However, this Form is no longer accepted by the Spanish authorities and they will refuse to stamp any FD9s submitted to them. Nevertheless, it appears that certain tax offices in Spain, notably the Orihuela and Elche tax offices, are still accepting the FD9 at the present time.

Instead, Spanish residents paying tax in Spain can request a certificado de residencia fiscal NEN – España Convenio, from their local tax office in Spain. This certificate should then be sent to HMRC, along with details of the pension income from which UK tax is being deducted, at the Centre for Non-Residents, Fitz Roy House, PO Box 46, Nottingham, NG2 1BD, tel: +44 151 210 2222 (if calling from outside the UK) or 0845 070 0040 (if calling from the UK)."

I would think paying an expert for the first year atleast would save a lot of hassle.


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## 90199 (Mar 21, 2010)

My government pension is taxed in the U.K. My O.A.P. is not taxed in the U.K. but is subject to Spanish taxation. I no longer make a U.K. tax return. I make annual Spanish tax returns in which all income is declared, I also pay Spanish tax on complicated investments and I pay an accountant to make the returns for me.


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## Rabbitcat (Aug 31, 2014)

Thanks folks, very helpful. Some very well informed people on here- you could charge for such excellent info and advice. Appreciated


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## alborino (Dec 13, 2014)

Rabbitcat said:


> Thanks folks, very helpful. Some very well informed people on here- you could charge for such excellent info and advice. Appreciated


No we couldn't. We are not qualified and may with all good intention be wrong. These are merely hints, suggestions, what was true a while ago, suggestions for routes of investigation, etc.

Note Hepa is a wise old war horse  but even he pays a professional. And only a stubborn donkey would ignore a wise old war horse 

Sorry Hepa but you seem like a wise old war horse to me and there is no disrespect intended in that (even if you need a dictionary to find b*****ks )


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## Rabbitcat (Aug 31, 2014)

Albariño take my comment as a compliment as it was intended and leave it at that- it's not worth analysing to death


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## snikpoh (Nov 19, 2007)

alborino said:


> No we couldn't. We are not qualified and may with all good intention be wrong. These are merely hints, suggestions, what was true a while ago, suggestions for routes of investigation, etc.
> 
> Note Hepa is a wise old war horse  but even he pays a professional. And only a stubborn donkey would ignore a wise old war horse
> 
> Sorry Hepa but you seem like a wise old war horse to me and there is no disrespect intended in that (even if you need a dictionary to find b*****ks )



Maybe, then, you'de be surprised how many people do offer these kind of services - for a price!


I agree that one should always take professional advice where needed. However for some procedural issues, the forum answers questions immediately.

The other issue is that some forum members know the actual situation 'on-the-ground' - it's not uncommon for 'professionals' to get it VERY, VERY wrong.


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## alborino (Dec 13, 2014)

snikpoh said:


> Maybe, then, you'de be surprised how many people do offer these kind of services - for a price!


Why? 

Are you really suggesting people should base their financial futures on anonymous input from a forum? I find that staggering. 

Loyalty to a forum is much appreciated but it is an internet forum. Nothing more, nothing less.


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## snikpoh (Nov 19, 2007)

alborino said:


> Why?
> 
> Are you really suggesting people should base their financial futures on anonymous input from a forum? I find that staggering.
> 
> Loyalty to a forum is much appreciated but it is an internet forum. Nothing more, nothing less.


Nope.

That's not what I said!


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