Tax in SpainOnce you have made your decision to leave UK or the country you reside in, you must first consider the taxes you are eligible to pay in your current country.
Having lived and worked within the UK you will have been paying taxes, the same as you would in Spain. So it is a good idea to check and clarify with HM Revenue and Customs what taxes you will have to pay upon either completely living in aboard or partly, that is having both residents/properties in two countries. It is also a good idea get information on your rights, obligations and future benefits if you leave the country depending on individual circumstances, such as entitlement to a state pension and any possible state benefits. You will at some point have to make a decision as to where you will pay particular taxes due to the fact that you should not have to pay the same tax twice and inn two countries.
Spain has a tax agreement with numerous countries including the UK that should help avoid people being taxes twice. The double taxation agreement means that if you pay income tax in the UK you do not have to pay it in Spain, and if you do your income tax declaration in Spain you should not have to then repeat it in the UK, unless for possibly commercial reasons. What taxes you have to pay in each country will depend on individual situations and personal factor. What taxes you will pay in Spain will initially be based on whether you are a non-resident or a resident in Spain or a resident in another country, so possibly a UK resident. It is normal to pay the bulk or majority of your taxes in the country were you maintain a permanent residence. However, there are certain taxes, which you will have to consider where ever you have a property. In Spain regardless for your financial and personal taxation circumstances, you will have to pay taxes that are attached to the property, such as council tax (IBI/SUMA), just as you would in the UK. Other taxes depend on personal factors like if you work in Spain, live in Spain or have business or investment in Spain.
Property taxes are applied to any property transaction, whether buying or selling, a home, land or a business in Spain. There are a range of different taxes you will need to be aware of some will be slightly affected by whether the vendor or buyer is a resident or not but the actual tax itself is not about whether you intend to live or work in Spain, but about the property.
ABAD LAW and ACCOUNTING firm can advise and assist you with any and all consultation or inquiries you have about Spanish taxation, and European taxation, as well as being able to help you with your own country’s taxation with the object of finding the best formula that will benefit your needs and is most suited to your circumstantial requirements. At ABAD´s we have the resources and profession current knowledge to provide our clients with an outstanding service that will take care of everything and that should the client want can do everything for them on their behalf with their best interests in mind, ensuring excellence and efficiency.