View Full Version : Tax Savings and Dividend Tax

03-08-2011, 11:33
As from April 2011

All UK payed savings and dividends are taxed once a year.
You do not need to do a quarterly tax model.
Once you are here go to the tax office and complete Modelos 030 and get it stamped.
Email Modelos 030 to a UK accountant to submit it to HMRC.
You are now a fiscal resident of spain.

The first 1500 euros are taxed at 0%
1501 to 6000 euros are taxed at 19%
6001 euros and up (no limit) are taxed at 21%

You do not need a spanish accountant. So dont be ripped off.

Once a year have a gestor do your tax return.

You get discount If:
You are married
You have children

If you pay some tax in the UK you can claim this back on you tax return. (the gestor will talk to you about this)

Under these conditions:

You cannot pay into a UK pension.
You cannot have money paid into a UK bank account from a UK source.
Your money must travel: UK source to tenerife bank - Tenerife bank to UK bank (for bills etc.. if you own a UK home).
You cannot own more than 1 UK home.
You can own a UK business as a share holder, but you must resign as a director.
You must own a home in Tenerife or have a long term rental agreement stamped at the notoria.
You cannot spend more than 90 days in 1yr in the UK. (in April 2012 this may be changed to 45 days)

YOU MUST SEVER ALL LONG TERM FINANCIAL TIES WITH THE UK - pensions, isa's, hedge funds etc........

This information has come from alot of frustrating meetings with my UK accountant, thier office in Madrid, our UK / Spanish lawers and the tax office in Madrid.

Information from the tax office in Tenerife - FORGET IT. They dont know their A*** from their elbow. They have to ask Madrid and chinese whispers start there.
Call Madrid yourself, and guess what? they speak English