# Resident or Non Resident?



## Dunpleecin (Dec 20, 2012)

I have been informed by my solicitor that I have to pay a non resident tax on my Spanish property. As I now live here (but have not got residencia yet) I understand that I become tax resident here, which is not a problem for me because I have a government pension in the UK so it should be zero rated I believe.

Therefore, would I still be considered resident, non resident, tax resident or what? And am I liable for this non resident tax if I have stayed in Spain over the past year, which I have?

There is also the IBI bill, but I realise this is payable in every circumstance.


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## snikpoh (Nov 19, 2007)

Dunpleecin said:


> I have been informed by my solicitor that I have to pay a non resident tax on my Spanish property. As I now live here (but have not got residencia yet) I understand that I become tax resident here, which is not a problem for me because I have a government pension in the UK so it should be zero rated I believe.
> 
> Therefore, would I still be considered resident, non resident, tax resident or what? And am I liable for this non resident tax if I have stayed in Spain over the past year, which I have?
> 
> There is also the IBI bill, but I realise this is payable in every circumstance.


I'm not sure I fully understand;


after 90 days you are considered resident
after 182 days you are considered tax resident

If you haven't bothered to sign on the list of foreigners and get your 'residencia', then the banks have no choice but to give you a non-resident account. It is up to you to get the necessary paperwork to prove otherwise.

You will have to be able to prove you are tax resident so that you avoid the non-resident tax but, as you haven't the correct paperwork, you aren't making it easy for yourself.

Have you completed a tax return in Spain?


Regarding IBI, this is like council tax in UK and EVERYONE who owns a property here MUST pay it.


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## Dunpleecin (Dec 20, 2012)

You're being a bit judgemental there with your "Not bothering" comment but I appreciate the reply.

I am therefore assuming that I need to get "Residencia" before I can claim to be a tax resident, whether I can prove how long I've been here or not?


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## xabiaxica (Jun 23, 2009)

Dunpleecin said:


> You're being a bit judgemental there with your "Not bothering" comment but I appreciate the reply.
> 
> I am therefore assuming that I need to get "Residencia" before I can claim to be a tax resident, whether I can prove how long I've been here or not?


you need to go see your accountant asap

the padrón & the resident cert are how you prove that you are resident, so if you haven't done either then you need to do those asap as well

also, change your bank to a resident account once you have your resident cert - charges will be lower

until you have done those then I suspect that you will have to pay the non-resident tax

this is why we nag about getting paperwork in order as quickly as possible - it saves you money


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## Lynn R (Feb 21, 2014)

Also, with effect from next year, UK Government pensions must be declared on Spanish tax returns (although in a different box from any other income, I understand). Although they will remain taxable only in the UK, I understand that this change could result in people who have pensions or income from other sources in addition to their Government pension paying more tax in Spain (because it affects their marginal rate of tax). How much difference it will make I am not sure, no doubt it depends entirely on the amounts involved.


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## snikpoh (Nov 19, 2007)

Dunpleecin said:


> You're being a bit judgemental there with your "Not bothering" comment but I appreciate the reply.
> 
> I am therefore assuming that I need to get "Residencia" before I can claim to be a tax resident, whether I can prove how long I've been here or not?



Perhaps I was a little judgemental but it is a legal requirement as is submitting a tax return.


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## Dunpleecin (Dec 20, 2012)

snikpoh said:


> Perhaps I was a little judgemental but it is a legal requirement as is submitting a tax return.


Apology accepted.

By this time next year when it comes out again I will be able to prove residencia so it won't be a problem.

Thanks for your help.

Now back to that list of a million and one things I still need to do...


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