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Written by David Bowern
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Friday, 04 June 2010 |
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Provided by Blevins Franks
Under Spanish law, you are a tax resident in Spain if you spend more than 183 days of the tax year in Spain. The Spanish tax year runs from 1st January to 31st December. The 183 days do not have to be consecutive and you become liable whether or not you formally register as a resident of Spain.
The 183 day rule is not the only provision in determining tax resident status. Even if you don't spend 183 days in Spain in a calendar year, you can still become a tax resident if your "centre of vital interests" is in Spain - i.e. the base of your economic or professional activities is in Spain. If your spouse lives in Spain and you are not legally separated you are also presumed Spanish resident, unless proven otherwise.
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Written by David Bowern
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Friday, 04 June 2010 |
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Provided by Blevins Franks
Retirees who live in Spain on a permanent basis are liable to Spanish tax on their pensions. It is usually your regular retirement income which provides the basis of day
Occupational and State Pensions
Occupational and State pensions are only taxable in Spain if you are resident there, and are taxed as ‘general’ income in Spain, and added to income such as rental income and other pensions taxable in the same way, as part of your worldwide income. A deduction of between €2,652 and €4,080 is available against such income (the higher the income, the lower the deduction, although it cannot be reduced below €2,652) in calculating the taxable income. This income is then taxed at the progressive scale rates from 24% to 43%. to day living expenses and tax needs to be factored into your calculations when working out how much you will have to spend.
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Written by David Bowern
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Wednesday, 03 June 2009 |
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Part 1
The simple fact is that banking secrecy is dead.
Offshore banks are succumbing to international pressure and it is becoming standard practice for offshore banks to report suspicious accounts (eg, where the bank suspects that an account is not being declared) to the tax authorities. The CIA tracks payments in Europe through SWIFT and will pass information on to overseas authorities. Governments are taking increasingly concerted steps to crack down on tax evasion.
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Written by David Bowern MIFP, Partner, Blevins Franks Financial Management Limited
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Wednesday, 27 May 2009 |
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Spring is in the air. After the flow of discouraging economic and market news through the winter, the outlook now appears to be sunnier. There is increasing optimism that the global economic downturn may be bottoming out and that we could see a return to growth sooner than expected. Investor, business and consumer sentiment has risen.
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Written by Written by David Bowern MIFP, Partner, Blevins Franks Financial Management Limited
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Thursday, 12 March 2009 |
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QROPS – An International Pension Scheme With Choice UK pension schemes have always been restrictive. Now an international pension arrangement known as a QROPS (Qualifying Recognised Overseas Pension Scheme) gives you more choice as well as potential tax benefits. British expatriates, or those about to move overseas, can transfer their UK pension fund into a QROPS and potentially avoid the tax legislation of a UK based pension scheme. However, to get some of the tax benefits, you have to have already notified HM Revenue & Customs (HMRC) that you have left the UK for tax purposes and must then remain a non-UK resident for five consecutive UK tax years before the full benefits start. Also, you will never be forced into buying an annuity from a Life Assurance company.
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Two new items on taxation in Spain 