Taxation of Spanish residents abroad

Hacienda sends letters, and not exactly of love. If you have ever received a request from the Treasury you know how it feels, most people feel insecure. Maybe everything is correct, but the simple fact that the Treasury is investigating us is usually a cause for concern.

The notifications of the Tax Agency are sent by certified mail or through the electronic mailbox, in both cases it is necessary to sign the acknowledgement of receipt for its reception. From the date of signature begins to count the period of time you have to comply with the requirement.

Keep in mind that if you receive an electronic notification you have 10 working days from receipt to give a response. If this period elapses, the notification will be considered as read and if no response has been received, the procedure will continue.

In the electronic headquarters of the AEAT, in the section “Featured procedures”, section “Answer requirements or submit documentation related to a notification received from the AEAT”.  To continue the proceedings you need the following:

 

When does the IRS send you a notice?

Tax notifications are notices that arrive from the Tax Agency with the intention of informing us, asking us to deliver some document or warning us of the beginning of some process. It is very typical to exaggerate every time we see a notification from the Tax Authorities.

How much tax deduction do you get for being married?

Taxpayers who are married have a reduction of the IRPF taxable base of 3,400 euros (although being a progressive tax, this option is recommended only in cases where one spouse does not receive a salary or it is very low compared to that of the other spouse).

How does the IRS know if you are a resident?

Staying more than 183 days a year in Spain.

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This is the most commonly applied and most important rule. If at the end of the year (counting the calendar year, from January to December), you add up all the days you have been in Spain and they are more than 183, you are a resident for tax purposes.

 

Letter from the Internal Revenue Service

The maximum term that the Tax Agency has to make the payment to be refunded for the income tax return is six months from the day on which the period for filing the income tax return ends. As this is the first day of July, the tax authorities will have until January 1 to pay you.

If, for any reason, it is later than this date, they will also be able to formalize it. But, in this case, they will have to pay the late payment interest, as long as you have not received a notification or there is a check on your tax data. From this scenario, during this period you should be calm because everything is going well. However, if you wish to check the status of your tax process because the payment is delayed, you can consult it telematically or at the offices of the Tax Agency.

Another solution available to you is to request the payment again by means of a written request for a refund. This is a document in which you must clearly express your wish and which you can send by mail -better certified- or fax to the address of the tax authorities in your locality. It is necessary to remind you that these alternatives that are enabled can be formalized if you have not made a parallel declaration, nor do you have outstanding debts with the State Administration.

When do I have to declare 720?

Deadlines for filing Form 720

Form 720 must be filed between January 1 and March 31 of the fiscal year following the fiscal year to which the information of said form refers.

What happens if you don’t open an IRS notice?

Article 203 of the General Tax Law makes it very clear: not opening the notifications may imply an infraction for resistance, obstruction, excuse or refusal to the actions of the State Agency of Tax Administration (AEAT).

What happens if you don’t pick up a notice from the IRS?

But what happens if I do not pick it up? In the case that we refuse to pick up the notification, the letter carrier will leave a notification for us to go and pick it up at the post office. In the event that it is not picked up at the post office, the notification will be sent to the BOE.

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Treasury requirement

was changed to disposable income. This new concept was defined, not as what is earned, but as the money that the taxpayer can use after taking care of his basic needs and those of his dependents. In other words, out of everything the individual earns,

so that the company can calculate the IRPF withholding from our paycheck throughout the following fiscal year. This does not imply that it is immovable.  On the contrary; in case of any change, we must be the ones to fill in and present in our company this model that we can easily download from the web page of the Tax Agency.  Why is it important to carry out the procedure? Communicating the change of our personal circumstances is more than convenient.  On the one hand, because it can suppose a reduction of what we are going to pay. Thus, we will be able to benefit from the same one from the first moment, for example, because

our company reduces the withholding tax due to the birth of a child or because our father becomes dependent on us, among many other circumstances.  On the other hand, because the updating of our data for the application of withholdings, even if they are higher than before, can mean a saving when we make the Income Tax Return. For example, if a child becomes independent and, therefore, is no longer part of the family unit,

What is the compensation between spouses?

This indicator allows to request the suspension of the payment of the tax debt of a taxpayer, without late payment interest, in an amount equal to or less than the refund to which his or her spouse is entitled for the same tax.

How much is my wife tax deductible if she does not work?

It is possible to deduct contributions, limited from January 2021 to a maximum of 2,000 euros per year, with a ceiling, which will be the lesser of the following amounts: 2,000 euros, coinciding with the contribution limit. 30% of the net income from work and/or economic activities.

Which is better to make an individual or joint income?

As a general rule, if both spouses work, it will be more favorable to file the tax return individually. … If only one of the spouses works and only one of them has earned income, it is more beneficial to file a joint tax return.

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Non-resident for tax purposes in Spain

It is very typical to exaggerate every time we see a notification from the tax authorities. The most typical thing to do is to think wrong and go straight to the assumption that it is something bad. Let’s not lose our nerves. Do you want to know what to do in these cases? Let’s take a look at the different types of notifications we may receive, with the intention of clarifying any doubts that may arise regarding each of them.

First of all, let’s see what to avoid doing. As we saw last week with the requirements of the Tax Authorities, one of the most important things is not to act crazy. In the case of notifications, the message is not necessarily going to be negative. In any case, opening it and reading the guidelines given by Hacienda is always the best option.

First of all, it is worth noting again that the notifications do not necessarily have to contain a negative message. In many cases, the letters sent to us do not require a response, and are simply informative documents, with pertinent notifications.

Under this category we can find three sub-categories: Notifications of requirement, notifications of liquidation proposal and notifications of resolution of the procedure. In all these cases, the Tax Agency is checking the data (as the name of the category indicates).

By Rachel Robison

Rachel Robison is a blogger who collects information on court filings and notices.