Non resident question
Posted: 04 November 2007 05:17 PM  
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I am non resident property owner in Spain (holiday appartment) and spend no more than 5 months of the year between Spain and uk (3 months Spain and 2 months in UK on average) with the remaining 7 months overseas working.  My ex wife (not yet divorced) has moved to spain in our holiday appartment with our daughter and I am still wanting to visit the amount of time as mentioned above the question is will I fall in to the bracket were I will have to pay Spainish taxes?  (I am a non resident to UK also as I am only there 2 month a year also) Thanks to replie as I am concerned the best way forward without be liable for spainish taxation bering in my my wife (although estranged and child now reside and school in Spain)

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Posted: 04 November 2007 05:38 PM   [ # 1 ]  
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When are you non-resident for UK tax?

You’ll be treated as non-resident from the day after you leave the UK if you can show
your visits to the UK are less than 183 days in a tax year and average less than 91 days a tax year over a maximum of four consecutive years The same applies to your spouse, civil partner or partner.

Lower taxes for non-residents in Spain
The Spanish government has announced its intention to lower the income tax charged to non-residents in Spain. The tax is called Impuesto sobre la Renta de no Residentes (impatriados).

The new law allows people with fiscal residence to declare Non-Resident Income Tax (Impuesto sobre la Renta de no Residentes) and aims to encourage activity of foreign companies in Spain.

People who have fiscal obligations in Spain but have not been residents here for the last 10 years and who have arrived as a result of a contract can opt for Non-Resident Income Tax. The work they are paid for must take place in Spain, although some activity can take place abroad (no more than 15 percent of overall earnings). If the company they work for is part of an international holding, then 30 percent of their wage can be earned abroad.

Non residents must work for a company registered in Spain. Tax payers who opt for this fiscal status will have to declare their taxes each year and will pay a fixed rate of 25 percent. They will not be liable to any tax deductions. They will have to apply for Non-resident status during the first 6 months of working in Spain, and the maximum period granted for non-resident status is set at 5 years.

google it and that what i found but it change every day .....

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Posted: 27 January 2008 09:24 PM   [ # 2 ]  
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Thank you for clarifying the UK tax side and as I file annually a Tax return in the UK as non resident however with a wife (sperated or otherwise and kids going to school in Spain am I liable for tax in Spain? even though I only spend 3 months a year in Spain a year? I do have a primary residence in UK.

Thanks in advance…..

Kaz

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