Life in Culebrón

Nearly everyone who lives in Spain has to do an IRPF, income tax, return each year; the declaración de la renta. Before Brexit, some Britons argued they paid their taxes in the UK and didn’t need to pay in Spain. While there may be rare exceptions, in general, if you live here, you pay income tax here. Many Britons living in Spain are also taxed in the UK, for example, on Government Pensions (ex-teachers, ex-military and the like). However, thanks to a bilateral tax agreement between Spain and the UK, the income that is taxed in the UK isn't taxed again in Spain. People, living in Spain, with an income below 22,000€ from just one source, and paying tax on that income, don't need to file a tax return. If the income is below 15,000€ the income can come from two sources but the second income can't be more than about 2,000€. These figures change each year, but they are roughly accurate for now. So, it’s not easy to avoid doing a declaración. It's not a particularly onerous,...

I was grumbling about being chased by the tax office here who say I didn't pay enough tax in 2014. I was particularly galled that I had paid an accountant to do the original tax return and now I'm having to pay a second accountant to sort out the job that the first one did. Sometimes the label professional doesn't seem the most adequate for the people we buy services from, like architects and lawyers, or for the civil servants/local government officers who process the documentation supplied by those so called experts. Anyway the accountant bloke who's trying to sort this out for me went to the tax office. The tax office were unwilling to accept my P60s in English. They had to be translated by an officially qualified translator. Figures vary but of the, roughly, 300,000 Britons resident in Spain about one third live in Alicante province. So what chance do you think there is that the P60 is an unknown document in an Alicante tax office? And a P60, it's not a word...

I've got a bit of a tax problem. It started just before the Easter break. The Spanish tax people seem to think that I lied in my 2014 tax return. I didn't. Well, so far as I know I didn't. The whole process is going to be one huge pain in the backside. Part of the ritual of bureaucratic torture that the Spanish state inflicts on its citizens with a monotonous regularity. In the years that we've been here we've bumped into it time after time. We immigrant Brits complain about Spanish bureaucracy and so do Spaniards. Britons complain about British bureaucracy too and I suppose that Ghanaians complain about Ghanaian bureaucracy. I think the difference with the Spanish system is that it is unassailable, unflinching, unmoving and unrepentant whereas the British one is just long winded. The British version is, was, much more open to question in the case of dissent. The Spanish process starts in one of two ways. Either there is hardly any information. A bill or a fine ...

Today is the first day that we Spanish tax payers have been able to sort out either under or over payments in the 2016 tax year. The Spanish tax year is the calendar year. Everyone, resident in Spain, who earns over 22,000€ or has more than one source of income, has to make a tax declaration. If you earn money from more than one source you don't need to make a declaration if you earn less than 12,000€. The declaration is on worldwide income. What happens is that the tax office, Hacienda to you and me, sends out a thing called a borrador, a draft assessment. Once you are on the website you can check if the borrador looks fair enough. If you have just one job with one salary and things are pretty much as they were last year you may have to tweak a few things but, chances are, that the borrador will be close to the truth. For quite a few years all I did was to have a quick scan and press the accept button because Hacienda usually sent me back a few euros. If your situation is a ...

I don't really mind taxes. That doesn't mean that I like handing over my hard earned but I approve of the idea. I'm much keener on the model where we pay the taxes and, with them, our governments attempt to provide healthcare, education, infraestructure and all the rest than I am on the model where everyone looks out for themselves and to hell with the rest. Anyway. For the past six years or so I've been getting a pension from a final salary pension scheme that I paid into for most of my UK working life. Because that money comes from a quasi government source the agreement between Spain and the UK was that it was exempt of Spanish taxes but taxed, at source, in the UK. Normally Spanish residents have to pay tax on their worldwide income here. In reality my pension is so small that it has never exceeded the personal UK allowance so, although Customs and Revenue send me coding notices and I get P60s and what not, I don't actually pay any tax on it. I also have a p...