Income
Tax
Company Tax
Rates And Allowances
Property Related Tax
UK-Spain Double Tax Treaty
Residence
Can only be tax resident in one country.
A person is resident in Spain if:
Spends more than 183 days in a calendar year in Spain or
Activities or economic interests are based in Spain.
Taxation of income and gains
Rental income
May be taxed in country where property is
situated.
Election to Inland Revenue to receive gross available.
Capital gains on disposal of
property
May be taxed in country where property is
situated.
Possible exemption available for sale of UK property by non-UK
resident.
Business profits
Taxed in country where company is based.
If permanent establishment in other country, taxed in that country as
well.
Dividend income
Taxed in country where shareholder is
resident.
Provisions for withholding tax.
Interest income
Taxed in country where beneficiary is
resident.
Provisions for withholding tax.
Pension income
Taxable in country of residence.
Election to Inland Revenue to receive gross available.
Exception:
Taxpayer
was
a civil servant. in which case the income is taxed in the country
of original employment.
Double tax relief
UK Resident with Spanish income
Tax credit for lower of:
Tax suffered in Spain
Equivalent UK tax
Underlying tax relief is available for dividends received when there is
at least 10% shareholding in the Spanish company.
Spanish resident with UK
Income
Tax credit for lower of:
Tax suffered in UK
Equivalent Spanish tax
A Spanish resident company with UK dividends receives the same tax
credit as it would have if dividends had been received from another
Spanish company.
These notes are intended as a
guideline and should not be used as a substitute for proper
professional advice. Please contact
us
and we will be happy to assist you.