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CONSEQUENCES OF THE TAX RESIDENCE IN SPAIN

YOU, AS A FOREIGN OWNER OF A PROPERTY IN SPAIN, ARE YOU PAYING YOUR TAXES AS A NON-RESIDENT WHILE BEING LEGALY RESIDENT? DO YOU PAY YOUR TAXES?

If you reside more than 183 days in Spanish territory, if Spain is the base of your business or economic interests or if your children or your husband or wife reside usually in Spain, then you acquire the legal status of RESIDENT for tax purposes.

The Spanish tax administration has sufficient methods to verify the above-mentioned residence conditions. If this condition is proved, you have to pay the yearly rental income tax in Spain where you will have to declare in Spain all of your incomes, annuities and property gains obtained in any place of the world. In addition of requiring the payment of the taxes of the current year, is it possible to have a retroactive effect up to 4 years, they can therefore ask for tax liquidations for the current year as well as for the 4 previous taxable years, with amounts to be paid, plus penalties, surcharges and late interests.

As regards inheritances and successions, and particularly since the entry into force of the European Union Regulation 650/2012, of 2015, all inheritances / successions are subject to the legality of the territory in which the deceased had his official residency at the time of his death.

The best is to be prepared and decide whether or not you are a resident in Spain according to the legal and tax comparison between your country of origin and Spain, and to take the appropriate measures, by organizing and controlling your legal and fiscal situation.

All problems happen when there is ignorance of the law and that is precisely what we need to avoid.

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