Becoming Resident in Spain – what about taxes and Finances?

Prior to Brexit, many people have been trying to get away with not declaring their taxes properly in Spain. The Hacienda can see you’re living here by looking at your water and electricity consumption, your phone usage, cash withdrawals and card spending, not to mention the electronic passport controls now operating in the UK and Spain.  This is a lot of hard work and is why in the past some people have managed to slip through the net.  

Since the beginning of this year, the Hacienda will have up-to-date data on every British Ex-pat who is living in Spain. This will be provided by HMRC who link it to your National Insurance number, so slipping through the net is almost impossible.  Add this to the Common Reporting Standards (CRS) that started 3 years ago and you could find yourself in very dicey territory if you do not get your tax affairs properly in order.

You might be in the position where your ‘hand has been forced’ due to the Brexit situation.  Many people have spent most of their time in Spain and done nothing about their tax affairs and only now must become resident officially.  Remember getting your TIE/residency is only the first step.  Make sure you get both Tax Advice from a qualified tax adviser and Financial Advice from a qualified Financial Adviser that is based in Spain – UK based Accountants and Financial Advisers will not be in a position to help you as a Spanish Resident.

The Hacienda also have the power to go back four years and request tax payments and impose hefty penalties for non-payment of taxes.

You are generally a Spanish Tax Resident if:

  • You are living in Spain for 183 days per year 
  • You have your ‘centre of vital interests’ in Spain (home, spouse, children, main source of work etc’)

Some taxes are still due in the UK, ie if you decide to retain a UK property or you have a Public Service Pension Scheme (Civil Service, Armed Forces, etc).  These fall into the Double Taxation Treaty, so they will be taken account of when you complete your tax returns in Spain.

If you are becoming a Spanish Tax Resident talk to us asap.  We will be able to give you some tips that will help you avoid making very costly mistakes. 

We will help you to find an Investment or Pension product that is as tax and cost efficient as possible; one that allows your money to grow without annual taxes and one in which the Spanish taxes are much lower on withdrawal than a non-Spanish compliant product.

In today’s financial climate it is essential you do everything you can to make sure your money is safe and secure and what you want to transpire in the future has the best chance of happening.


120 Avenida Dr. Artero Guirao 2C

San Pedro Del Pinatar

30740, Murcia

Our office suite is easy to find on the main N332 through road of San Pedro del Pinatar with easy parking.

If you want more information or wish to make an appointment to discuss your own situation please call 657 684 094 or email

Blacktower Financial Management (International) Limited is licensed by the Gibraltar Financial Services Commission. Licence 00805B. Blacktower Financial Management Limited is authorised and regulated by the Financial Conduct Authority in the UK and is registered with both the DGS and CNMV in Spain.