Tax query

I have just started a p/t job in Alicante and have registered with an NIE & S/S number, however when I went to the bank to setup an account I was told I have to pay UK tax on my Spanish salary until I become resident? Yet my boss says because I live & work here and have a Spanish contract I should be paying Spanish tax? So now i'm worried I'm going to get taxed twice! Can anyone advise which is correct?

ONCE ONE BECOMES RESIDENT IN Spain they are tax resident in Spain, so must pay tax on their worldwide income, and ‘second home tax’ on ANY property, anywhere in the world, and also, if they have in excess of 50,000 euros assets outside Spain, make an annual return (Google 'hacienda modelo 720' for precise info). 

One should notify HMRC ( unless things have changed, HMRC will send a form which is then submitted to Hacienda).

When I came here I did what Johncar said - I told the UK tax people that I was in Spain and would be paying tax here. There was some process, which I forget, but it wasn't onerous.

In my opinion you should pay your tax here if you are going to stay long enough to become resident i.e. 183 days. Actually though if you are going to stay it doesn't really matter too much. There's no hurry.

Employers do not have to pay the equivalent of PAYE, most do but not all. The reckoning comes at the end of the tax year, which is the calendar year. I know this from hard experience. I am employed by two langauge schools at the moment. Both pay the social security and one pays 2% of my wage to the Spanish tax people, the other has paid nothing. When my draft tax declaration came I suddenly became aware that I would have to pay the unpaid tax in one lump sum (well actually divided into two payments) There is a potential advantage in paying the full PAYE because if you earn less than around 22,000€ and you are paying that you don't need to make a tax declaration.

What is it to do with your bank about your tax? They may be unable to give you a resident bank account if you have not been here that long but they can give you a bank account and on day 184 they can convert it to a resident account. How you pay your tax doesn't seem, to me, to be much to do with them.

Just to clarify.

One becomes resident in Spain when the first of these occurs:-

You move to Spain.
You are here 3 months permanently in 12 months
OR if you spend more than 183 days in 12 months here.

In addition to that if your ‘centre of economic activity’ is in Spain. That includes if your family, spouse and children live here.

In very unusual cases when there is doubt, one should consult Hacienda (AEAT) and HMRC who will decide

Re the 22,000 euros income.  I understand that only relates to earned income and even then from just one source.

From a practical point of view it is often recommend that everyone should make a take return so that if required they can prove their situation in Spain.  That might include being exempt from capital gains tax on their property when they are 65+ and have lived in that property for at least 3 years

Can u help me?  I like joing with you. Can you joing to mo a job

Thankyou all for the clarification. I shall endeavour to apply for my residency in 3 months time as advised 😊

Garret   You seem to have misunderstood my post.

If you read it again you will see that as soon as you moved to Spain, i.e. in your case, looked for work you were obliged to register on the EU Cutizens Register,

This link explains - … dex_en.htm

I do not want to split hairs on this, but if one presents themselves at the Documentation Section of the National Police requesting an NIE  you must give the reason.  If that reason is you are seeking work, have a job, are moving to Spain etc. then in my experience of 20 years with the police, you will not be permitted just to apply for an NIE, you will be required to register.

I appreciate that the EU info web page  ( … dex_en.htm) includes ‘you have a salaried position or you are self-employed in Spain’  but in reality one cannot be self-employed nor work unless one has an NIE

Awesome!! Thanks 😊

New topic