# confused



## panelbeater (Mar 4, 2015)

Hi All, First thanks for all the info to date, it has been very helpful. I now have another problem looming, my intent is to move over late 2016 after I turn 65. I intend to rent not buy, I fully expect to pay my way, taxes etc, if I am living in Spain it is only right I pay my taxes. This is where the problem lies, I will have 2 pension [none crown[ and 2 rental incomes, I know I pay UK tax and can offset against Spainish tax, fine no problem. I have been told I will be taxed on my world wide assets, ie the gross values of my UK houses, even though I will not be selling them or even considering doing so, surely that can not be right?. There must be many expats living in Spain with Uk homes, are you all paying on an asset?, paying on the rental income, absolutely only fair, but if your houses are worth say £300,000 on the UK market, surely after a couple of years everyone in this position would go bust. Please can someone clarify. Thank you all so much for the postings


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## Lynn R (Feb 21, 2014)

panelbeater said:


> Hi All, First thanks for all the info to date, it has been very helpful. I now have another problem looming, my intent is to move over late 2016 after I turn 65. I intend to rent not buy, I fully expect to pay my way, taxes etc, if I am living in Spain it is only right I pay my taxes. This is where the problem lies, I will have 2 pension [none crown[ and 2 rental incomes, I know I pay UK tax and can offset against Spainish tax, fine no problem. I have been told I will be taxed on my world wide assets, ie the gross values of my UK houses, even though I will not be selling them or even considering doing so, surely that can not be right?. There must be many expats living in Spain with Uk homes, are you all paying on an asset?, paying on the rental income, absolutely only fair, but if your houses are worth say £300,000 on the UK market, surely after a couple of years everyone in this position would go bust. Please can someone clarify. Thank you all so much for the postings


You will be taxed on your world wide income - not your world wide assets. You will have to submit a Modelo 720 return as well as an income tax return, though. The 720 requires you to provide details of all your assets if you have overseas assets worth €50,000 or more in any one asset class (cash in bank/building society accounts, shares, other investments, property, etc.). I believe in the case of property it is the purchase price which you declare, not the current market value. You don't pay any extra tax as a result, this is a measure introduced to help track down tax evaders and make sure people are paying tax on all the income they receive, whether from Spain or other countries (and many other countries besides Spain have a similar requirement).

So the rental income you receive on your properties would need to be declared on your Spanish income tax return, along with your pensions.

If you should ever decide to sell your UK properties the profit would be subject to Capital Gains Tax in Spain.


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## extranjero (Nov 16, 2012)

Even if you dont have rental income on your houses, you will be taxed" imputed income, "as if you do!


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## panelbeater (Mar 4, 2015)

Thank you that's clear, I now I must pay tax on the rental income perfectly proper, as I don't intend to sell until I return to the UK capital gains will only apply in the UK when I decide to. Brilliant my mind is unclogging.


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