You may not know, but Spain is one of the few countries in the world that taxes its citizens on their worldwide income. This means that no matter what city you go to live abroad. You're in Beijing, Paris o San Francisco, while you are a Spanish citizen and you have earned any income, you must file a tax return here. This statement will be a resident or non-resident, depending on the circumstances.
After many years of experience in tax preparation, Rico Asesores has found that many of the Spaniards who have planned move abroad are not aware of important tax issues that must comply.
These are the 5 Key tax issues that any Spanish live or plan to live abroad should know:
1. Present your return on time.En primer lugar resulta imprescindible comprobar si el cambio de residencia ha alterado tu condición de residente fiscal. Will shift the country which, according to your personal circumstances and contractual, will grant or tax residency. In general, we can say that:
a) If the displacement occurs after the day 30 of June, resident status in Spain remains and must submit your income tax return for that year in Spain.
b) If the displacement occurs before 30 of June, normalmente el estado de acogimiento te otorgará un certificado de residencia fiscal. Meanwhile, the Spanish Tax Administration, will renounce your tax residency, automatically granting the status of non-resident. For it, deberás comunicar dicha circunstancia a la AEAT mediante el modelo 030 requirements and to avoid harmful situations. In addition, for income obtained in Spain (earned income, lease, rental income, ...) you must submit Income Tax Non-Resident, whose deadline varies depending on the income generated in Spain.
2. Learn how to optimize taxes as an expatriate.
a) In the event that personal circumstances, contractuales y de desplazamiento te permitieran ser considerado residente fiscal en España, you should check the possible application of the Exemption for work performed abroad regulated in the income tax law and commonly known as 7p. This will allow no tax on income earned abroad provided that certain conditions are met.
b) It should be considered Nonresident, carefully review the Double taxation agreement between Spain and the country. Sometimes, ambos países gravan la misma renta pero con la obligación de arbitrar medidas para evitar la doble imposición. That is to say, the sum of the amount paid between the two countries does not exceed the higher tax rate of one.
3. Declaration of assets abroad.It presents the informative statement of assets abroad, model 720, si tienes la condición de residente y contribuyente de IRPF y posees bienes o derechos en el extranjero por un importe conjunto superior a 50,000 €. Failure to submit this statement implies the imposition of heavy fines.
4. Movimientos de efectivo y transferencias. Remember that there are controls on the movement of incoming and outgoing cash transfers. Depending on the amounts, es obligatorio presentar el modelo S-1. En caso de incumplimiento, the money will intervene and disciplinary proceedings which may lead fines will start from 600 € until all the money involved.
5. Know the rules of your new country of residence. Each country works differently and has its own rules and deadlines. We know that knowing the taxation of a country is not exactly an attractive, but it is sanctioned in a foreign land nor.