# Can the Spanish tax office withhold my tax rebate?



## Sarus (Jan 19, 2015)

Can the Spanish tax office withhold my tax rebate?

Apologies if this has been covered. I found one similar post which was never answered.

I arrived in Spain with my wife and child at the end of August 2013. I registered as autonomo and started work in October 2013. I paid the fixed tax rate for this last quarter of 2013, but my earnings were only just over the tax allowance threshold and I was informed I had paid too much tax for 2013. I never received a tax rebate and when enquiries were made the tax office claimed they would not refund my overpaid tax because I was not considered resident. Surely this cannot be right.

I would also like to know how I stand for 2014. I remained autonomo until the end of June 2014 when I deregistered. Counting up to the last day of June is 181 days. We did not however leave Spain until July 4th which is 185 days. Will I be considered tax resident for 2014?

If I am to be considered tax resident in 2014 could I not claim “automatic inference of tax residence” using "centre of vital interests" in 2013 by virtue of the fact that I was working, had no other ties to any other country, intended to permanently reside and had a child in school in Spain?


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## alborino (Dec 13, 2014)

Sarus said:


> I was informed I had paid too much tax for 2013. I never received a tax rebate and when enquiries were made the tax office claimed they would not refund my overpaid tax because I was not considered resident. Surely this cannot be right.


My experience is that Spanish authorities lack the ability to think and will also be frequently in error due to very easily misunderstood documentation; conflicting documentatiuon at national, regional and local level; and a lack of training.

So I'm sure you are in the right but how without investing endless time or a very great expense I'm not sure there is much you can do. Did/Do you have an advisor looking after your autonomo or tax? 

When I had trouble with a bank retaining money, just as I was paying for a flat, even my bent lawyer said there was nothing we could do. However my Spanish sister-in-law in Madrid had contacts in the banking industry, made a few calls, heated calls, and six hours later voila. Your advisor might be able to do something similar.

If the amount of money is worth it I'd pursue at least an accountant to try and get the money back eventually. But very sad to hear someone doing the right thing is being trodden on - but welcome to Spain (if you're ever coming back ).


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## Sarus (Jan 19, 2015)

I use vilanova Gestoria which have been great up to now. I have told them to look into it. I am just surprised the tax office would even try this on. If they say I wasn't tax resident then they should blooming well give me the whole lot back.


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## brocher (Mar 21, 2011)

Sarus said:


> Can the Spanish tax office withhold my tax rebate?
> 
> Apologies if this has been covered. I found one similar post which was never answered.
> 
> ...



It doesn't sound as if you would have been tax resident in Spain- which means you would still have been tax resident in the UK.

That means you would have to do UK tax returns, on which you would show your Spanish earnings. Any rebate/ undepayment would be decided by and refunded, if applicable, by HMRC not Spain - due to the double tax treaty. Have a read of HMRCs website.


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## alborino (Dec 13, 2014)

brocher said:


> It doesn't sound as if you would have been tax resident in Spain- which means you would still have been tax resident in the UK.
> 
> That means you would have to do UK tax returns, on which you would show your Spanish earnings. Any rebate/ undepayment would be decided by and refunded, if applicable, by HMRC not Spain - due to the double tax treaty. Have a read of HMRCs website.


Brocher I don't think hmrc will repay over payments made to Spain. They just won't tax the same income a second time. But hope I'm wrong.


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## brocher (Mar 21, 2011)

alborino said:


> Brocher I don't think hmrc will repay over payments made to Spain. They just won't tax the same income a second time. But hope I'm wrong.


Yes they would, just as they would also charge for any underpayment. IF the OP is deemed UK tax resident, they will take into account earnings and tax paid in Spain.

Split year treatment. - https://www.gov.uk/tax-foreign-income/residence


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## Pesky Wesky (May 10, 2009)

I would make an appointment to go to the Spanish tax office with my paperwork and ask them to explain it to me, with the gestor because if, as Brocher says, you were not a tax resident here then s/he mucked up and needs to get it sorted!


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## brocher (Mar 21, 2011)

Pesky Wesky said:


> I would make an appointment to go to the Spanish tax office with my paperwork and ask them to explain it to me, with the gestor because if, as Brocher says, you were not a tax resident here then s/he mucked up and needs to get it sorted!


Sounds as if Spanish have already realised they made a mistake and that's why they aren't repaying.

I would get in touch with HMRC - as should have been done before leaving for Spain


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## CapnBilly (Jun 7, 2011)

If you are non resident in Spain then any earnings are taxable, but you do not receive any personal allowances. The tax rate was 24% for 2013 and 2014. So, I am afraid it is correct that you will not receive a refund. If you did declare it in the UK, then you would get a credit for any tax paid in Spain, but only upto the amount of tax due on the same amount. In other words, you do not get a refund.

You could try and claim centre of vital interests, but then you would be tax resident for the whole year, as there is no concept of split year in Spain. This means you would have to declare any income for the whole 2013, although you would get credit for any tax paid on the basis as earlier.

This would also apply for 2014.


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## Sarus (Jan 19, 2015)

brocher said:


> It doesn't sound as if you would have been tax resident in Spain- which means you would still have been tax resident in the UK.


Previous to my arrival in spain I had been living in Thailand. I have not been resident in the Uk since 2003.


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## Sarus (Jan 19, 2015)

Thanks for the replies. This does make sense CapnBilly:



CapnBilly said:


> If you are non resident in Spain then any earnings are taxable, but you do not receive any personal allowances. The tax rate was 24% for 2013 and 2014. So, I am afraid it is correct that you will not receive a refund.


I was resident in spain as far as NIE, autonomo registration, empadronament, child in school are concerned, but I guess I was not considered tax resident because I was not in spain for 183 days in the year.

I just cant see how someone can be registered autonomo, pay tax and social security, but not be considered tax resident.



CapnBilly said:


> You could try and claim centre of vital interests, but then you would be tax resident for the whole year, as there is no concept of split year in Spain. This means you would have to declare any income for the whole 2013, although you would get credit for any tax paid on the basis as earlier.
> 
> This would also apply for 2014.


I will try this. I had no other earnings in Europe for 2013 and very little in 2014.


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## Sarus (Jan 19, 2015)

Just to clarify this means that if you work as autonomo for six months (which is under 183 days) you would be considered non tax resident and have to pay full tax and would not get any personal tax allowance. I wish i'd known that before. Goddamn thieves!


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## Pesky Wesky (May 10, 2009)

CapnBilly said:


> If you are non resident in Spain then any earnings are taxable, but you do not receive any personal allowances. The tax rate was 24% for 2013 and 2014. So, I am afraid it is correct that you will not receive a refund. If you did declare it in the UK, then you would get a credit for any tax paid in Spain, but only upto the amount of tax due on the same amount. In other words, you do not get a refund.


I have paid 21% for the last few years as a self employed worker


Sarus said:


> Just to clarify this means that if you work as autonomo for six months (which is under 183 days) you would be considered non tax resident and have to pay full tax and would not get any personal tax allowance. I wish i'd known that before. Goddamn thieves!


Perhaps the tax authorities should have notified you, I don't know, but shouldn't the gestor have known what to do, how to do the correct paperwork?


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