Weekender Alicante South Issue 118

14 FRIDAY 22ND NOVEMBER 2019
www.weekender.news
Business & Money
Sorting out your Spanish tax
We all hate paying tax, but
it is a fact of life in every
country including Spain,
and we at Sun Lawyers
are right across what it
means to you, and what
you must pay.
Tax in Spain can be a
complicated issue because if
you fail to make a declaration
or don’t pay the correct
amount, you can end up with
a severe fine.
Sun Lawyers will make
sure that you don´t fall foul
of the rules!
The Spanish government
frequently change their tax
regulations, which can make
it very difficult for non-residents
and residents to keep
completely up to date.
At Sun Lawyers we always
recommend seeking
independent advice when it
comes to any legal matter in
Spain.
The key points are: -
1. The Spanish tax year
runs from January to
December.
2. In Spain both residents
and non-residents are
obliged to pay taxes.
Every non-resident must
make their annual nonresident
tax declaration by
December 31st.
Put your trust in Sun
Lawyers to sort things out
on your behalf.
Am I a tax resident
in Spain?
You are a resident for tax
purposes in Spain if:
1. You spend more than
183 days in Spain in
any calendar year, regardless
of whether you
are formally registered.
2. You are self-employed
or otherwise employed
in Spain.
3. Your spouse or children
live in Spain and you
are not legally separated
even though you
may spend less than
183 days per year in
Spain.
This is a basic guideline,
and Sun Lawyers recommend
every individual to
seek independent advice before
submitting taxes, which
is of course where we come
in to help.
Spanish tax residents
are liable to pay income
tax on their worldwide income,
which is split into two
categories:
1. Income from general
activities – this includes
income from employment,
pension, and
rental income
2. Income from savings –
this includes interest
from savings, dividend
payments, income from
life insurance policies
and gains made from
the disposal or transfer
of assets.
Tax Allowances – As a
resident you will receive a
personal allowance for your
Spanish income tax (from
both savings and general
income). These allowances
include age allowance, married
couple allowance and
disability allowance.
Since 2013, If you are a tax
resident in Spain and own assets
in excess of 50,000 euros
outside of Spain, you are required
to declare these assets
under Spanish Law.
An example of these assets
includes:
1. Assets held in any bank
account.
2. Property.
3. Shares.
4. Life insurance policies.
Non-residents tax
If you own a property in
Spain, you must pay two
taxes:
1. IBI or council tax – This
is a council tax that is
based on the rateable
value of your property
(the open market
annual rental value).
2. Notional income tax
or rental income tax.
Income tax is paid by
non-residents who own
a property whether
rented out or not.
NOTE – the Spanish tax office
does not send notifications
of IBI tax addresses outside
Spain. It is therefore advisable
for a non-resident who has a
property in Spain, to appoint
a Fiscal Representative.
Points to keep in
mind
1. You will not necessarily
be reminded that you
owe tax.
2. It is your responsibility
to make sure all your
taxes are paid.
3. Any overdue taxes
must be settled before
you sell or inherit a
property.
4. Failure to pay taxes on
time can result in late
payment interests and
sanctions.
Fiscal representation
At Sun Lawyers we appoint
one of our fiscal experts to
deal with all your tax related
needs, who then:
1. Make sure all your taxes
are paid on time.
2. Represent you to the
Spanish Tax Authority.
3. Receive all your tax notifications.
4. Alert you to any changes
in the tax law.
5. Is always on hand to
answer any questions
you may have throughout
the year.
If you have any questions,
then please send an email to
admin@sun-lawyers.com or
call the Sun Lawyers office
on 965 321 193.
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