What tax?

[Lithgy]

My wife and I have had a home in Torrevieja for ten years and have always paid Non residents tax. For the last two years we have both registered as residents and signed on the Padron. Our Fiscal Representative insists that we continue to pay the Non Resident tax. We move between the UK and Spain very much sharing the year although this year spending more time in the UK due to elderly parents requiring more help. We have a Residents bank account and worry that this will eventually be seen as an anomoly that will require sorting out. We pay income tax in the UK and wish to continue doing that. My thoughts are that we should not be paying the Non Residents tax but continue to fulfil our tax obligation by paying income tax in the UK and not Spain as allowed within E.U. tax regulations. Am I correct in this view or is my Fiscal Representative correct in insisting that we continue to pay Non Residents tax?

[Professional Lawyer]

Hi, There is a difference between being Resident and Fiscally Resident. If you are living more than 183 days in Spain then you should be fiscally resident (or tax resident). You are correct though that you can elect to pay your income tax in the UK. There are advantages to being fiscally resident in terms of the future for capital gains tax and inheritance tax issues and you should probably consider whether it would be to your advantage to switch your fiscal residency to Spain, depending on your assets. Your fiscal adviser could discuss this with you. If you are not fiscally resident in Spain, then you must pay your Non Residents tax as Your Fiscal Representative says.