Do I have to file at home while living in Spain?
For most people the answer turns on whether the ties that made them resident have actually ended. For a US citizen or green-card holder it does not: the return is due in Spain exactly as it would be at home. Everything else on the file follows from which of those you are.
Is there a treaty between my country and Spain?
Treaty networks change with each protocol and each multilateral-instrument position, so we confirm the treaty in force for your specific year with the issuing authority rather than relying on a published summary. Where there is none, unilateral relief and domestic law do the work instead.
I own property in Spain. Where is the rent taxed?
Rent from immovable property is almost always taxable where the property is situated, frequently by withholding on the gross amount, with your home country taxing the same income and giving credit. A net-basis election, where one exists, is usually the difference between tax on profit and tax on turnover.
What do I have to file in the year I move to Spain?
Usually two returns for one year: one covering the part of the year your former country still had you, and a Spanish one covering the part after the move. The split follows the date residence changed, which is a question of fact rather than a choice. Income arising close to the changeover causes most of the trouble — a final pay run, a bonus, an invoice settled late — because it can be picked up on both sides. Deciding the date first, and preparing both returns from the same facts, keeps them consistent. Reconciling them after they have been filed separately is much harder.
Does Canada tax me on the way out when I move abroad?
There is a departure charge in some systems, and Canada's is the one most of our clients meet. On ceasing residence you are treated as having disposed of certain property at its value on that day, and the resulting gain is taxed even though nothing has been sold. Some assets sit outside the charge, and there is a route to defer payment by providing security instead of paying at once. The departure date therefore does two jobs: it splits the year, and it sets the values. Establishing it carefully, with evidence behind it, is the first piece of work.
Should I sell my house before or after I move to Spain?
It depends on which country will treat you as resident on the day of completion and on what relief each gives for a main home. A property sold while you are still resident where it sits is usually treated differently from the same property sold after you have gone, and Spain will have a view of its own once you are resident there. The gap between the two answers is often wider than people expect, and the decision can only be made before the sale. Model both timings before you accept an offer, not while you are packing.
I am an American moving to Spain. Do I stop filing in the US?
No. American citizens file wherever they live, so a move to Spain adds a Spanish return rather than replacing the American one. Relief for the tax Spain takes comes through that return, and there is more than one mechanism available, each with its own conditions and its own consequences for later years. The choice made in the first year matters, because it is not freely reversible afterwards. A move abroad also tends to trigger disclosure forms for foreign accounts and assets for the first time, and those carry penalties of their own, separate from any tax.
When exactly does my residence change for tax purposes?
On the facts of the move, which is why the evidence matters more than the intention. Where your home is, where your family lives, where your belongings went, when the lease or the sale completed, when the employment changed, when the Spanish registration was made: these are what an authority looks at if it ever asks. Choose the date the evidence supports and then use it consistently across both returns and any employer paperwork. Returns quoting different dates for the same move invite the question you least want, and the answer is then whichever date suits the authority asking.
What should I sort out before I leave rather than after?
Anything that needs a document from an institution you are about to stop being a customer of. Statements and cost information for investments, the papers for property you are keeping, confirmation of pension entitlements and the closing payroll records are all straightforward to obtain while you are still there. Also settle, before departure, how your employer will handle payroll once you have gone, whether your accounts will stay open, and the date the move is being treated as taking effect. Collecting all this afterwards is possible, but it takes months and somebody has to chase it.
What counts as foreign income, and what is a foreign tax?
Foreign income is income sourced outside the country you are filing in — where the work was done, where the property sits, where the payer is resident, depending on the type. A foreign tax, for credit purposes, is a levy imposed by another country that functions as an income tax and that you were legally required to pay. Consumption taxes, property taxes and most social contributions are not, however real the cost. Sourcing is decided by rule, not by which bank received it. See the foreign tax credit.
What is double tax relief and how is it given?
Three mechanisms, and which one you get depends on your residence country's law and the treaty. Exemption leaves the foreign income out of the residence-country base. Credit taxes it and then subtracts the foreign tax, capped at the residence-country tax on that income. Deduction merely reduces taxable income by the foreign tax, and is usually the weakest. Canada and the United States lead with credit; several treaties give exemption for specific income types. See claiming the credit.
