Wealth Tax

I want to move to Spain but will not be working and am not a pensioner. I will be living off the proceeds of my house sale in England and then a private pension until I am state pension age. Do I still have to pay wealth tax and how does it work? Thank you

Just take care that when you sell your property in UK that you will not be liable to capital gains tax in Spain.

Re wealth tax.  For a tax resident in Spain that is applicable to assets in excess of 1,000,000 euros.  Of course income tax is payable on income on invested assets.

This may help further :-

https://www.blevinsfranks.com/news/arti … allowances

Thank you Johncar. I didn't know that wealth tax started at such a high rate so that will not be a problem. So if I am not earning I don't pay tax?

Correct   No income, no income tax.   However I suggest you notify the HMRC you have moved and register with hacienda ( the Spanish tax authority) and make a tax declaration in may / June for the preceding tax year.  So if tax resident in 2019 one declared in 2020.   That way you have paperwork to prove your financial situation

Thank you for the information Johncar

To determine exactly what specific taxes you will pay in Spain as a foreigner and what the amount will be, you must first know whether you are a resident in tax terms or not.

This distinction is merely fiscal in nature, and has nothing to do with the residence permit you may have to live legally in the country. This means that you may or may not have obtained a formal residence permit, but if you meet the requirements we will now discuss, you will still be considered a resident for tax purposes.

The requirements for being a tax resident are:
Living 183 days or more in one year in Spain.
Property in Spain
Majority of financial interests in Spain.

Is this correct?

Sorry you are in part correct but on balance incorrect

https://www.blevinsfranks.com/news/arti … -and-taxes

The Spanish tax residence rules

You are resident for tax purposes in Spain if ANYof the following apply:

1) You spend more than 183 days in Spain cumulatively in a calendar year, whether or not you are formally registered. Temporary or sporadic absences are ignored for the purpose of this rule unless you can prove you are habitually resident in another country for over 183 days.

2) Your “centre of economic interests” is in Spain– i.e. the base for your economic or professional activities is in Spain. If you earn more income or have more assets here than in any other single country, Spain will be deemed the centre of economic activity,

3) Your “centre of vital interests” is in Spain – i.e. your spouse lives here and/or your dependent minor children. In this case you are presumed Spanish resident, even if you spend less than 183 days here, unless you can prove otherwise.

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