# Tax in Spain do I have to pay?



## Longshot (Sep 26, 2008)

Hi I'm moving with my family in December to rent long term, our sole income is from me from me trading on betting exchanges (uk bookies) on the internet which in England is completly tax free, I asked them about moving and they said just update your new banking details and carry on trading as usual but I am wondering what happens if I open an bank account in Spain and withdraw money to that will I have to pay tax on gambling winnings  


Any help I would be gratefull

Thanks

Longshot


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## Longshot (Sep 26, 2008)

Just found out this but i'm still not 100% on this 

"as a Brit in the E U you pay tax as a brit
income tax, so it's not taxable in Spain"


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## Stravinsky (Aug 12, 2007)

Longshot said:


> Just found out this but i'm still not 100% on this
> 
> "as a Brit in the E U you pay tax as a brit
> income tax, so it's not taxable in Spain"


In general if you are a Brit living and residing in Spain then you pay your tax on any income in Spain - dont know where you found the above advice but in principle its not right.


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## Longshot (Sep 26, 2008)

Stravinsky said:


> In general if you are a Brit living and residing in Spain then you pay your tax on any income in Spain - dont know where you found the above advice but in principle its not right.


Thats what I thought, so I take any gambling winning in Spain are taxable? where's in the UK there not.

Income taxes do not apply to gambling winnings in the UK otherwise the IR would have to give an allowance on the losses, which as we all know is going to be the bigger number!


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## chris(madrid) (Mar 23, 2008)

You need to contact Spanish IR - I don't bet ever (except the Spanish Xmas lottery which is more tradition), but STATE CONTROLLED Lottery winnings ARE exempt afaik. 

If you reside here you are subject to SPANISH IR. That "tax advice" is bollix. 

What IS true is that if you have paid tax on income in the UK it will be deducted and NOT RETAXED from your overall Spanish income tax bill.

As for offsetting losses - DO NOT EXPECT anything like that here. Losses are your problem - Gains are taxable. My guess - and it is a guess - if it's earned in a non Spanish state licensed establishment: it's taxable as earned overseas income.


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## Longshot (Sep 26, 2008)

So if I keep my betting account in the UK and not transfer it to Spain I should be ok because its non taxable in the UK - then just send money over to my spanish account

Thanks for the help guys

Longshot


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## Longshot (Sep 26, 2008)

Just got this which soundns about right


hi
my pal who used to live in spain says its only money earnt in spain. if you earn money in teh uk and its tax paid - ie you move it to your spain account then its not taxable.

as winnings are free of tax then this is uk tax paid money. you only pay tax on any income from spain. 

ie dont worry about it!


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## Stravinsky (Aug 12, 2007)

Longshot said:


> Thats what I thought, so I take any gambling winning in Spain are taxable? where's in the UK there not.
> 
> Income taxes do not apply to gambling winnings in the UK otherwise the IR would have to give an allowance on the losses, which as we all know is going to be the bigger number!



Tax free it may be in the UK, but they dont look on things like that here.

For instance your tax free pension lump sum on a private pension should be tax free in the UK, but it will be treated as income and taxed here


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## Longshot (Sep 26, 2008)

Stravinsky said:


> Tax free it may be in the UK, but they dont look on things like that here.
> 
> For instance your tax free pension lump sum on a private pension should be tax free in the UK, but it will be treated as income and taxed here


right got it.

So if they class it as an income is there a threshold before it becomes taxable for me - I suppose I could just put enough in the spanish account to cover all rent/bills per month say 800 euros per month = 9600 per year

And then I could keep my betting in the UK with a britsh bank and make cash withdrawels over in Spain - probably get stung with high fee's then 

The reason i'm worried is that the exchange I use has now put a charge on winnings at 20% so to pay tax on that aswell would be a killer!

Thanks for the info


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## Longshot (Sep 26, 2008)

can someone confirm this is correct:

For 2008 the basic personal allowance is €5,151 per person (€5,050 in 2007), or twice this being *€10,302 *for a joint return.

So if me and my partner file joint we have that allowance plus extra for 2 young children?


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## Stravinsky (Aug 12, 2007)

Longshot said:


> can someone confirm this is correct:
> 
> For 2008 the basic personal allowance is €5,151 per person (€5,050 in 2007), or twice this being *€10,302 *for a joint return.
> 
> So if me and my partner file joint we have that allowance plus extra for 2 young children?


This help?
Notes on Spanish income tax. Spain income tax. Income tax returns Spain. Spanish income tax returns. Income tax Spain.


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## Longshot (Sep 26, 2008)

Stravinsky said:


> This help?
> Notes on Spanish income tax. Spain income tax. Income tax returns Spain. Spanish income tax returns. Income tax Spain.


 thanks!


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## almendros (Aug 14, 2008)

If you are taxed jointly you do not both get the personal allowance.

One gets the full 5050 allowance and the other gets a "family" allowance of 3400. These figures will go up slightly for the current tax year where payment is due by June 2009.


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## Longshot (Sep 26, 2008)

almendros said:


> If you are taxed jointly you do not both get the personal allowance.
> 
> One gets the full 5050 allowance and the other gets a "family" allowance of 3400. These figures will go up slightly for the current tax year where payment is due by June 2009.




Thanks for the info, but I'm the sole income source


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## almendros (Aug 14, 2008)

Longshot said:


> Thanks for the info, but I'm the sole income source


So why did you say:-

For 2008 the basic personal allowance is €5,151 per person (€5,050 in 2007), or twice this being €10,302 for a joint return.


I was merely pointing out that info was not correct.


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## Longshot (Sep 26, 2008)

almendros said:


> So why did you say:-
> 
> For 2008 the basic personal allowance is €5,151 per person (€5,050 in 2007), or twice this being €10,302 for a joint return.
> 
> ...



that range should be fine - I suppose I could put money in two accounts in Spain


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