Perhaps, due to the circulation of incorrect information, you have been led to believe that you are able to choose where to pay your taxes either in Spain or the UK. Well, this is not the case; matters regarding the payment of taxes are very well legislated. Depending on the type of income received by each individual it is established if payment of taxes is to be made in Spain or in the UK. So, if you live in Spain and are registered as a resident, figure on the Padron where you live and have a SIP card which allows you access to the Spanish Health System, the Spanish tax man has started to ask the question, “Why then do you not pay your taxes in Spain?” Due to what is mentioned above, many British Residents in Spain have started to receive letters from the Spanish Tax Agency, asking them to regulate their tax situation with the Spanish tax authorities, depending on whether the person in question is a resident or a non-resident of Spain.
In de UK, HMRC is focusing on rental income, it does not matter if the income arises from a property located in the UK or abroad. The UK tax authorities is trying to put things in order also and receive revenue from UK residents with undeclared rental income or investments outside of the UK.
If this is the case and you have received a letter, or, should you receive a letter from the Spanish or the English tax authorities in the future, you should not panic. What you should do is seek a Professional help who is able to advise the most beneficial way for you to resolve the situation.
Declaration of worldwide assets
At the beginning of this year the Spanish tax authorities caused a scandal when they announced a new law that obligates Spanish residents to declare the assets they hold in other countries all over the world (properties, investments, insurances, etc.). Lately other Countries within the EU are also obligating their residents to do the same. This obligation is legislated by the EUROPEAN UNION Savings Directive and will be successively put into action by all the Countries at make up the EU. Our clients have already started receiving questionnaires from the banks that hold their savings, in other EU countries, asking for the same information that was requested in the 720 form (the Spanish equivalent). These banks are obligated to forward the completed questionnaire to the corresponding Tax authorities in the country of residence of the account holder.
It’s obvious that putting in order your fiscal situation both in the UK and in Spain is the only way to avoid fines, loss of income, etc... Something no one wants to contemplate.
Why UK Tax Refunds?
UK Tax Refunds is a registered Agent with Her Majesty Revenue and Customs (HMRC) and fully understands the English Tax System.
The service that UK Tax Refunds provides not only recovers any overpaid tax, but as part of the process ensures that your Spanish tax obligations are met and all your UK tax affairs are in order.
Give us a call on 965636938 or email us: michelle.hamilton@uk-taxrefund.com