Personal tax advice for Spain
There is a lot of information on this website and the idea of this page is to assist Spanish taxpayers, or those Spanish personal tax issue or potential issue, find their way around. Here you will find:
1. Quick links to useful advice and guidance on the site
2. A Â description of our non residentÂ tax service
3. A Â description of our resident tax service
4. Other tax services for individuals
5. A description of our consultancy services
Looking for business advice? There are similar pages for autonomos/self-employed and for businesses in general.
1. Quick links for individual taxpayers
Articles on the site relevant to Spanish taxpayers:
Do you need to submit a Spanish Tax Return?
Spanish Income Tax
Spanish Income Tax Rates 2010
Late Reporting and Fines
Spanish taxation of married couples
Spanish Gift Tax
And for non resident Spanish property owners:
Spanish Tax Form 210
2. Non resident tax service
Generally reporting of non resident taxes is a very straightforward affair, certainly for the typical holiday home owner that does not earn any income from their Spanish property. Our basic service involves:
- registering the taxpayer with the Tax Office (Agencia Tributaria) if they are not already registered
- preparing their returns based on information they provide to us (normally a copy of their IBI or rates bill will suffice)
- submitting the required Form 210 returns
There can be snags that come up but it is normally simple and can all be done online/by email. Â We charge a basic 30â‚¬ for the service, with an additional â‚¬10 for each additional return on the same property (e.g. in the case of a home owned by a husband and wife). Â It's a useful service for those who are not in Spain to do the necessary admin.
There are two types of complication which involve a bit more work and slightly higher fees:
Non residents who do rent out their properties or who have other sources of income inÂ Spain(e.g. dividends from Spanish shares). Â Non residents who receive income from Spanish assets have to pay tax as the income arises, either filing a form 210 each and every time they receive income or filing a form 215 every quarter. Â Depending on the circumstances we charge about 100â‚¬ for a year's returns.
Non residents who are behind on their taxes and want our help catching up back years, perhaps because they didnâ€™t know of the requirement to submit Form 210s. Â Back year taxes cannot be settled online and this involves a trip to the bank to settle the taxes. Â We can arrange this but the additional effort adds a further 20â‚¬ to the fee. Â It's worth catching up unpaid non resident taxes as they are a ticking timebomb for the unwary.
For further information go to our dedicated Spanish Tax Form 210 page.
3. Resident tax service
Anyone resident in Spain is likely to have to file a resident tax return (declaracion de la renta) though there are plenty of exceptions. See our article Do you have to submit a Spanish tax return?
Our service is not for everybody. Â Some residents with very simple tax affairs may be better off learning to do their tax returns on their own, perhaps with assistance from their bank or the Spanish tax office (their website has a dedicated Renta area each year). Another option is to go to a local Spanish gestor (a kind of official paperwork specialist) who will file a return relatively cheaply.
The Advoco resident tax service is really for people who need some extra support for any number of reasons but particularly:
- if their tax affairs are more complex and they need things explaining to them
- if they have multiple sources of income
- if they have a high level of income which makes mistakes much more costly
- if they are new to Spain and reorganising their finances (e.g. registering for tax in Spain and de-registering in the UK)
- if they have offshore arrangements or other tax efficient arrangements they wish to protect
- if they have business interests in Spain or abroad
- if they still have assets and income sources outside Spain
- if they are in transition between one tax authority and Spain
- if they have issues they are uncertain about e.g. their residency status or liability to tax
- if they have capital gains issues
Advoco provides these individuals and couples a more comprehensive service than a DIY or gestor approach could, in the form of:
> an English chartered accountant to be their personal tax adviser
> advice on the international aspects of their tax affairs with a mixed UK and Spanish accountancy team
> assistance with the resolution of tax affairs outstanding in their home country or the transition between tax systems
> a review of their affairs so that they are structured in a tax efficient way and the maximum allowances and deductions are taken
> being on hand for queries and issues year round not just around the tax reporting season.
The annual fee for this service is 120â‚¬ for an individual or a couple with relatively straightforward circumstances.
4. Â Other tax services for individuals
Capital gains tax advice and filing. Note that capital gains made by resident tax payers are filed as part of their annual income tax declarations. It is an area where taking advice and planning before disposal of an asset can pay dividends. Non residents pay capital gains tax at the same rate but the system of declaring and paying is very different and we can assist.
Inheritance tax advice and filing. A common area of concern for Spanish tax residents and non residents with property in Spain. The Spanish inheritance tax rules are very different to those in the UK for example. A different approach to sucession planning is required to minimise the tax burden of the heirs. If a member of the family has died leaving Spanish assets then we can advise on the best way to proceed with the transfer of assets and extinguishing tax liabilities. Gifts during lifetime are also subject to tax and it may be best to seek advice.
Related articles: Spanish gift tax
5. Â Tax consultancy services
Not every client comes to us because they have Spanish taxes to declare. We are also available on a consultancy basis for a broad range of tax issues which may have a Spanish and an international aspect. There are two main types of consultancy work we do for individuals:
Typically a client is weighing up a decision and needs assistance in assessing the options and quantifying the tax implications. Examples of such decisions are:
- moving to or away from Spain
- how to deal with earnings from temporary contracts in Spain
- how to deal with earnings abroad as a Spanish resident
- whether or when to register as Spanish tax resident
- legitimising, establishing, transferring, restructuring business interests
- offshore investing
Consultancy â€“ sounds expensive?
It can be expensive to bring in UK and Spanish qualified professionals to work on a problem or project, but it all depends on the nature of the task. For small problems, our advice may not cost anything at all because, as a general rule, a clientâ€™s first consultation or query is answered free.
For bigger issues we agree a fee in advance which reflects the complexity and size of the task. We will quite happily to quote for smaller projects with fees from â‚¬60 up.Â OurÂ consultations are carried out by telephone, Skype and email.