Becoming a Spanish resident – where do I pay my tax

Filed under : Residencia

The Double taxation relief treaty between Spain and the UK is not an EU agreement and at least initially, will not be affected by Brexit. It may be revisited in future years once the dust has settled on any deal or no-deal.

Under its terms a British national who spends more than 183 days resident in Spain in a calendar year is considered to be a tax resident of Spain. If you are to become resident in Spain you will need to inform the Inland Revenue in the UK of your intention to leave. From the time you take up residence in Spain you become taxable for that year or part year. The tax is paid the following year and the Spanish tax year runs from January 1st to December 31st.

If you are in receipt a Military or Civil Service pension you have to continue to pay tax on that pension in the UK. You will then have to complete a Spanish tax return with proof of the tax paid. In some cases there may be a further amount payable but you will not be taxed twice on the UK military or Civil Service pension.

There is an exception to the rule on tax residency after 183 days in Spain. The exception is if you can prove that the centre of your vital interests is in the UK. For example if you were to have control of a company or be running a business which is solely UK based. Each case has to be considered on its merits and its particular facts. Simply receiving an income in the UK is not sufficient proof that it is your centre of interests.

If you are obliged to become a tax resident of Spain because you are going to remain in this country for more than 183 days a year our tax expert can undertake a calculation and advise you of your future tax liability. We would need evidence of income including all your assets such as pensions, dividends and any property in the UK or Spain. There is an 80€ consultation charge for undertaking the tax calculation and we can meet with you to discuss your individual requirements. We can then assist with the annual declaration.

Our charge for assisting with your application for Residency in Spain is 150€ plus Iva at 21% and 200€ plus Iva at 21% for a couple. There is current tax of 10.60€ per application. Once resident we can

For a private consultation call us on 952 931781 or email [email protected]

More information about living in Spain can be found at the UK government website on