# UK to Spain: Tax advice on declaring assets



## ug94bxs (Apr 8, 2020)

Hello

I wonder if someone can help me with a tax question. I have been doing some research and found mixed signals concerning Spanish tax due on UK assets.

I intend to move to Murcia over the summer with my wife (from Murcia) and our two daughters. I intend to register as a resident as I will be staying in Murcia at least 9 months of the year and 3 months back in the UK.

I will continue to work for a UK company remotely in Spain and pay my UK taxes.

Income Tax: I have worked out I will need to pay an additional £3500 in income tax in Spain as the income tax rate is higher than in the UK.

The bit I am confused with is declaring my worldwide income to Spain. I have assets in the UK above the 50k limit in all categories and cannot understand how Spain calculates the tax due. e.g. I have the following

ISA
SIPP
P2P
Cash in Bank

For the ISA/SIPP how do they calculate the 'gain'? I am mid 30's and cannot touch the pension and I never withdraw from the ISA's. Do they just calculate the increase in value every year and then apply their income tax? As there is no tax in the UK for SIPPS/ISA at this point in my life I would have to pay the full Spanish income tax on the gains

For the P2P/cash intrest, I assume I can offset the UK tax with what's owed in Spain and pay the difference as I am doing with my PAYE income?

Thanks


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## The Skipper (Nov 26, 2014)

ug94bxs said:


> Hello
> 
> I wonder if someone can help me with a tax question. I have been doing some research and found mixed signals concerning Spanish tax due on UK assets.
> 
> ...


It's best to take expert advice on such matters from one of the many English-speaking advisers that operate in Spain, such as: https://www.blevinsfranks.com/where-we-are/spain


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## stevec2x (Mar 24, 2012)

Hi.

As Skipper said, take advice.

However. Fyi, I moved to Spain 8 years ago and when I did the declaration of assets, I was advised that my personal pension fund did not need be declared (I was under 55yo at the time). Therefore, there was no need to give a figure for 'income' from the fund either. I think the reason I didn't have to declare it was that, at that time, the fund was inaccessible to me (because I was under 55).

I am now over 55 and in receipt of an income from that pension. I still don't declare the value of the fund, but I do declare the income I now have from it.

Be aware that there is no tax on your assets, you just have to declare them. Since your ISA is accessible, I suspect you should declare it.

Hope this helps, and again, get some professional advice, it doesn't cost much.


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## Juan C (Sep 4, 2017)

NB There is a tax on assets. It is called patrimonio tax. As I said earlier it will not apply to the average person but non residents with over 700,000€ in assets in spain, residents over 1,000,000€ worldwide, should look into it,

Suggest you google ‘patrimonio tax spain’

This is an extract :

Are you liable for Spanish wealth tax?

If you are resident in Spain, wealth tax applies to your worldwide assets, after the relevant tax-free allowances.

For non-residents it affects Spanish assets only. It is payable on the total net value of your taxable assets at the end of each year (i.e. 31st December).

From :- 

https://www.blevinsfranks.com/news/articles/spain-wealth-tax-rates-and-allowances


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## Joppa (Sep 7, 2009)

The limits are per person, so if you share your assets with your spouse, you get double the amounts. I would have thought most people won't be liable, as for residents the principal home is exempt up to 300,000 euro per person..


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## ug94bxs (Apr 8, 2020)

thanks All

The info I have been able to confirm with an spanish tax advisor is that the pension should be out of scope for the wealth tax but pretty much everything else is in included


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## Dominic Lopecas (Aug 9, 2019)

ug94bxs said:


> Hello
> 
> I wonder if someone can help me with a tax question. I have been doing some research and found mixed signals concerning Spanish tax due on UK assets.
> 
> ...


If you are Resident in Spain for 190 of year you are label to pay all your taxes in Spain and at the Spanish rate, and that applied to all your income and assess, what ever country you have them. Most EU states operating in the same way. 19% the first 6.000€, 21% up to 50.000€ and 23% every thing above 50.000€ valued. The Spanish government has a massive Fiscal-debs and the Agencia Tributaria are under enormous pressure to find money, and they use every means to get it.


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## Juan C (Sep 4, 2017)

Dominic. Just to clarify. If one spends 183 days in a calendar year they are automatically tax resident. However they can be tax resident in a shorter time as a result of other actions.


The income tax rate are I believe:-

Taxable Income 

up to €12,450: 19%

from €12,451 to €20,200: 24%

from €20,201 to €35,200: 30%

from €35,201 to €60,000: 37%

incomes over€60,000: 45%


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