# Residencia and tax residency not in country 183 days



## LolainSedella (Dec 16, 2020)

Hello,

I took out residencia earlier this year due to be being stuck in spain due to the covid lockdown (i exceeded 90 days in country in a row), this was on the 24th of June. 

Where does this leave me with taxes? I have proof that i have actually only been in Spain for about 130 days this tax year and was only renting a holiday home. I am non resident in the UK and a TAX non resident in another country (where I have taxes with held). 

No income has been derived in Spain. Do i owe taxes and do i have to complete a tax return?

Thanks


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## NickZ (Jun 26, 2009)

It sounds like you're saying you don't have tax residency anywhere else. Right?

The fact it's a holiday home doesn't help you. Rules don't state owned home or normal rental. They state something like having a home available to you. That can be a bed in mom's basement or it can be a luxury villa or anything in between.

From what you've mentioned I'd expect Spain to think you're a tax resident. That means the full set of Spanish tax rules on worldwide income.

How that effects you depends on the other country that is withholding. The tax treaty between that country and Spain.

Unless it's employment or property income it sounds strange a country you aren't tax resident is withholding taxes.


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## LolainSedella (Dec 16, 2020)

NickZ said:


> It sounds like you're saying you don't have tax residency anywhere else. Right?
> 
> The fact it's a holiday home doesn't help you. Rules don't state owned home or normal rental. They state something like having a home available to you. That can be a bed in mom's basement or it can be a luxury villa or anything in between.
> 
> ...


Yes its employment taxes and they with hold all taxes at source in country. I actually spent 130 days in spain, 125 days in country where my taxes are with held and the remainder of the time at my parents house in Dubai. 

Thanks


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## kaipa (Aug 3, 2013)

I would imagine that by applying for residency in Spain you are declaring that is your centre of interest so would be considered liable for Tax. However if you now plan to leave Spain I don't think anything would happen


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## LolainSedella (Dec 16, 2020)

kaipa said:


> I would imagine that by applying for residency in Spain you are declaring that is your centre of interest so would be considered liable for Tax. However if you now plan to leave Spain I don't think anything would happen


Basically after 90 days i was told you have to register for the green card with the police. Which I have done due to covid and not being able to fly back to work due to international travel restrictions. Now i have since left Spain with the only intention to return for holidays.


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## kaipa (Aug 3, 2013)

Well if you have told the Spanish authorities you are no longer resident then there really is nothing to worry about. If you are hoping to keep your residency to allow you access to the country at a later date then I imagine that would be illegal


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## kaipa (Aug 3, 2013)

TBH I don't think you should have applied for residency if you were never intending to stay despite the 90 day rule. Were you actually told by anyone official to do this ?


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## LolainSedella (Dec 16, 2020)

kaipa said:


> Well if you have told the Spanish authorities you are no longer resident then there really is nothing to worry about. If you are hoping to keep your residency to allow you access to the country at a later date then I imagine that would be illegal


I havent told anyone because I havent been there. If that the case I will try to get back as soon as possible to sort it. I left on 3rd of August


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## kaipa (Aug 3, 2013)

I am not sure you need to return as such. If you have genuinely left Spain and do not intend to live there then I really dont see any need to return. Your pardon will expire after 3 months and if you have no property or bank account you wont be expected to pay even non-resident tax. If the authorities ever asked you you have proof you were there less than 180 something days and only registered as you were forced to stay over 90 days. However, if you have a Spanish bank account with standing orders being paid out for various utilities they can use that to suggest you still are connected to Spain. If you have residency and have assets over 50,000 euros ( savings/ property) you need to declare them. Failure to do so carries very very big fines.


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## xabiaxica (Jun 23, 2009)

kaipa said:


> I am not sure you need to return as such. If you have genuinely left Spain and do not intend to live there then I really dont see any need to return. Your pardon will expire after 3 months and if you have no property or bank account you wont be expected to pay even non-resident tax. If the authorities ever asked you you have proof you were there less than 180 something days and only registered as you were forced to stay over 90 days. However, if you have a Spanish bank account with standing orders being paid out for various utilities they can use that to suggest you still are connected to Spain. If you have residency and have assets over 50,000 euros ( savings/ property) you need to declare them. Failure to do so carries very very big fines.


The padrón won't expire after 3 months - only the cert.


I agree - the OP shouldn't have registered as resident - but I do think that they should 'unregister' at the earliest oppportunity. If they don't, then when it comes time to submit a tax return, hacienda will possibly start chasing & then it will be up to the OP to prove that they haven't been in Spain all this time.


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## Barriej (Jul 23, 2012)

LolainSedella said:


> Hello,
> 
> I took out residencia earlier this year due to be being stuck in spain due to the covid lockdown (i exceeded 90 days in country in a row), this was on the 24th of June.
> 
> ...


As someone with a 'holiday' home. You should be paying non residence tax every year. Are you?
Its not very much but does keep you legal at the moment its 19% of 1.1% (here in the Alicante area) of the value of your home. After dec 31st if it goes in line with 3rd country it will 24% of 1.1% 

Once you became resident that would have changed. If you no longer going to be resident you must inform and then you will go back to the old system.


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## Lynn R (Feb 21, 2014)

Barriej said:


> As someone with a 'holiday' home. You should be paying non residence tax every year. Are you?
> Its not very much but does keep you legal at the moment its 19% of 1.1% (here in the Alicante area) of the value of your home. After dec 31st if it goes in line with 3rd country it will 24% of 1.1%
> 
> Once you became resident that would have changed. If you no longer going to be resident you must inform and then you will go back to the old system.


The OP did say "renting a holiday home" not owning one, so would not be due to pay non resident tax.


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## Barriej (Jul 23, 2012)

Lynn R said:


> The OP did say "renting a holiday home" not owning one, so would not be due to pay non resident tax.


My bad. Should read more carefully...


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## trotter58 (Feb 8, 2017)

kaipa said:


> TBH I don't think you should have applied for residency if you were never intending to stay despite the 90 day rule. Were you actually told by anyone official to do this ?


If staying for longer than 90 days you are/were required to register. See....https://www.gov.uk/guidance/residency-requirements-in-spain
" _How UK nationals who plan to live in Spain for more than 3 months must register as a resident and on the padrón at their town hall. _ "


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## yevlondon (Jul 8, 2020)

i quite disagree with comments above that the OP should not have registered. it is a requirement for EU citizens (and until 31 dec 2020 UK citizens have same rights and obligations as EU citizens) to register in another EU country where they stay longer than 3 months - articles 6 and 7 https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2004:158:0077:0123:en:PDF so the OP simply followed the legislation. 

my view is that since OP spent less than 183 days in Spain - they did not become tax resident. shall Hacienda inquire at a later date - simply show them proof of you arrival and departure dates and explain in a letter what happened.


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## trotter58 (Feb 8, 2017)

LolainSedella said:


> Hello,
> 
> I took out residencia earlier this year due to be being stuck in spain due to the covid lockdown (i exceeded 90 days in country in a row), this was on the 24th of June.
> 
> ...


You'll be fine..... You've spent less than 183 days in Spain, your centre of economic activity is not in Spain and you have no family in Spain (I assume), so you're not fiscally resident. Just make sure that you sign off the padron when you leave Spain.


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