# 183 day rule accountant help needed!



## codex70 (Jun 24, 2012)

I know there are a lot of questions about the 183 day rule, but I've searched and not really found the answer to my question.

We're looking to move to Mallorca later in the year once our property here is sold and we've bought something smaller in the UK to rent out and give us something to keep a foothold in the UK. 

The issue I'm concerned about is that I get paid most of my income as a dividend being a company director. I know the tax arrangements in Spain are different to the UK, so this probably isn't the most efficient way of being paid in the future. The question I have is when does the 183 day taxation rule run from as the UK tax year runs from April and the Spanish one from January. 

If I move out after July would I be deemed to have spent more than 183 days in the UK this tax year and pay UK tax for any income before we leave? Do we then start with the Spanish tax in January? Does it just switch when we move, so we pay tax in the UK on earnings up till we leave, then tax in Spain for income from then on?

If anyone knows the answer, or could recommend a good Spanish accountant who understands the UK and Spanish tax systems then I'd love to know. We would be happy to pay for the service, because I know that if we get it wrong it could end up being a very expensive mistake. Also we'd need a good Spanish accountant once we've moved to keep our tax affairs in order!


----------



## snikpoh (Nov 19, 2007)

The '183 day rule' is a maximum of 183 days (not necessarily contiguous) in any calendar year - which is also the Spanish tax year.

Depending when you move, you may find that it works in your favour (re tax years etc.)


Where are you? - then someone can, perhaps, recommend and accountant in your area.


----------



## codex70 (Jun 24, 2012)

We're currently in Norfolk (UK), hoping to move to Mallorca (not sure where yet). Obviously a good accountant we could work with going on would be ideal.

If it goes on calendar year, then as you say it could work in our favour, but I don't want to get it wrong as dividends are taxed at a much higher rate in Spain, I'm likely to be much better off restructuring the way we get paid in the future. My big problem is that we're hitting the UK tax year and about to pay our dividends.


----------



## gus-lopez (Jan 4, 2010)

If you moved in july you wouldn't have done 183 days in the UK as the UK tax year starts on April 5th . If you moved on say 15th July the you would only have 101 days as a UK tax resident. 

The Spanish tax year runs 1st January until 31st December so if you moved on 15th July then you would not be tax resident in Spain until next year as you would only have been here 168 days.  You wouldn't have to make a declaration until 2015.


----------



## codex70 (Jun 24, 2012)

Thank you, so we may need to time our moving quite carefully! 

To be honest if we pay UK tax this year on any money and Spanish next year that would be fine, I just don't want to end up paying Spanish tax when our income is geared towards UK tax laws. We can worry about the most sensible way to pay ourselves in Spain next year. I'm not looking to avoid paying tax, just not pay excessively more than we need to.


----------

