Do they need a tax adviser?

Q.

My partner and I have lived in Spain for seven years. We have lifetime residency and NIE. We live on our pensions and do not pay tax in the UK, as we do not earn enough. Some people tell us we must register for tax in Spain and some tell us we don’t have to. A website tells us that if we earn less than €22,000 per year, we do not have to register in Spain. We are now confused. I have recently begun earning from buying shares in properties with a Spanish company, and so I agree I must now register. Can you please clear up the matter?

N K (Costa Blanca)

YES you must declare for Spanish tax. Here is a simple rule: if you reside officially in Spain, your worldwide income is subject to Spanish tax. In your case, you want to find a Spanish tax consultant who speaks English so you can understand. Ask your friends. The limit of €22,000 applies only when the income received has been subject to Spanish withholding tax during the year. Clearly, this does not apply to a UK pension.

Send your questions for David Searl through lawyers Ubeda-Retana and Associates in Fuengirola at Ask@lawtaxspain.com, or call 952 667 090.