Question
I am moving over to Spain next month. I have not started the process of applying for residencia yet but have everything prepped etc. My concerns are due to tax issues. I have or will have by the end of this month sold my house back here in the UK before I move. Will I be taxed on the sale of my property in Spain once I become a resident?
Myself and my daughter whom is moving with me run an online business where we are both registered here in the UK as self employed, is it right that we will both be charged approx nearly 400 Euros a month tax? Or do we get taxed on our monthly earnings as some months may be quieter than others?
Answers
These are the answers of some Facebook group members:
“On CGT tax, no you will not be taxed in Spain. You will be Spanish tax resident from 1/1/2021 so only taxable events from that date count in Spain.”
“Provided you sell it before the end of the year, you will be selling in a year in which you are NOT tax resident,. Once 1st January comes, it will enter into the tax year 2021 anbd be taxable when you make your income tax return in June (or before) 2022, so definitely get it sold now! (unless you are over 65 in which case it is free of capital gains tax.”
“Sell it before December 31st. You will not be in Spain long enough this year (2020) to be tax resident here.Personal Experience, so happy to share.”
“If you have been in Spain for 183 days you automatically become a tax resident whether you register or not. However, we do believe the minute you register you are a fiscal resident meaning you may only be resident for 1 day but as long as its before 31 Dec you will be taxed for the entire year which is Jan to Dec. Do protect yourself and check this out with an expert. Too much at stake to get it wrong!”
“This is on the Blevin Frank’s website “there is no split year treatment in Spain; you are either resident or non resident for the whole fiscal year”. So if you register as a resident you are resident for the whole year. Its quite clear.”
“It is fairly clear, so I do wonder how you have managed to misunderstand it so badly. You are suggesting that somebody could arrive in Spain in the last week of December and somehow, retrospectively have been a tax resident since the previous January. Surely common sense is enough to tell you that’s not how it works. You become tax resident in Spain by spending > 183 days in a calendar year in Spain.”
“If you move to Spain say 1st Nov 2020 then if you have made Spain your home you will be required to complete a tax return before 30th June 2021. This declaration is retrospective for the tax year 2020. Simple!”
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