Taxes for longish cruise in Spain

[ferroboat]

We intend taking our yacht to La Coruna and then cruising down the Rias and Spanish/Portugese Atlantic coast finding somewhere to over winter 2013/14 in either Spain or Portugal before returning or possibly carrying on into the Med. We have heard stories about the Spanish putting a 12% tax on yachts. The only time we will be in one place is the over wintering period where we will remain afloat and aboard. Any advice please.

 

[duncan99210]

Ok, here we go again! This is a topic that has come up quite often on here. In brief, if you are in Spainish territorial waters for more than 183 days in a calender year, you are liable to pay the Spanish Matriculation Tax on the assessed value of your boat. IIRC it is currently at about 14% but that may have changed of late. Note that you can have your boat in Spain for as long as you like, the liability arises if you are there for more than 183 days in the year.

Now, there is a way round the tax. If you declare yourself as resident in Spain within 30 days of arrival and at the same time declare that you are brining your boat into Spain with you, the boat is exempt from the tax as part of your 'household goods'. This exemption is a hangover from pre EU days when you could move household goods between coutnries without tax. You will need a lawyer (gestator) to help you with this process and it would make sense if you intend going down this route to have tings set up before you arrive in Spain.

Having said all of that, the tax is not widely collected. There are stories doing the rounds of folks being caught but they are few and far between and often have a tale of some other sort of trouble which led to the tax people getting dragged in round the edges. If you don't have a long term berth, aren't obviously living in the country on a permanent basis and are equally clearly mobile and intending to move on again in the not too distant future (ie you're a cruiser), then I doubt the Spanish authorities will take much notice of you, if any.

Finally, if you did decide to go down the Spanish residency route, you should note that there is an agreement in place between Spain and UK regarding income tax; if your income is taxed in UK, then that income will not be subject to Spanish tax and vice versa.

Last bit (yes, I know I said finally above but I don't care), this is a link to a previous thread on the topic http://www.ybw.com/forums/showthrea...ation-tax&highlight=spanish+matriculation+tax .

 

[jimbaerselman]

We intend taking our yacht to La Coruna and then cruising down the Rias and Spanish/Portugese Atlantic coast finding somewhere to over winter 2013/14 in either Spain or Portugal before returning or possibly carrying on into the Med. We have heard stories about the Spanish putting a 12% tax on yachts. The only time we will be in one place is the over wintering period where we will remain afloat and aboard. Any advice please.

Read http://jimbsail.info/going-foreign/time-abroad which covers this subject as it applies across the EU - and Spain, as part of the EU.

 

[colind3782]

I thought I heard that they were sacking the matriculation tax as it breached EU rules? Or something like that.

 

[davids0865]

Hi,

and happy 65th today.

Sorry for the fred drift, but, do you actually have a ferro boat, if so please tell us more.

David

 

[duncan99210]

I thought I heard that they were sacking the matriculation tax as it breached EU rules? Or something like that.

No, as I understand it they have removed the need to re-register the boat under the Spanish flag, which also removes the need to obtain a Spanish skippers ticket and teh associated bits of paper. You simply have to either pay the tax or import the boat as part of the process of registering as a resident.

 

[colind3782]

No, as I understand it they have removed the need to re-register the boat under the Spanish flag, which also removes the need to obtain a Spanish skippers ticket and teh associated bits of paper. You simply have to either pay the tax or import the boat as part of the process of registering as a resident.

I'll have a look and see if I can find the post.

Here's the thread I was thinking of. Apparently the "matriculation tax" is now a "pollution tax"

http://www.ybw.com/forums/showthread.php?333295-Matriculation-tax

 

[gavin_lacey]

First let be stress I am not a tax accountant. That said I believe that the 183 day thing is not absolute. If you have your main family home in the uk, pay tax in the uk on savings or a pension, have a car taxed in the uk etc etc then you can remain a uk tax resident even if you exceed 183 days in spain. More knowledgable comments very welcome.

 

[duncan99210]

First let be stress I am not a tax accountant. That said I believe that the 183 day thing is not absolute. If you have your main family home in the uk, pay tax in the uk on savings or a pension, have a car taxed in the uk etc etc then you can remain a uk tax resident even if you exceed 183 days in spain. More knowledgable comments very welcome.

OK. If you have a UK based income, you will remain liable for UK income tax no matter where you are resident, except in a few circumstances which for most of us normal mortals are not worth getting into. As far as most EU countries are concerned, there are agreements in place that income is only taxed once, so once you've paid your UK income tax, thats it. If your income is not UK based and taxed and you're resident in any one EU country for 183 days, then you become liable to pay taxes in the country. That's the general rule in the EU.

As a separate issure, Spanish law is quite clear; if you as an individual spend more than 183 days in the country, your boat attracts a tax, be it called matriculation or pollution tax. You can avoid this by registering as resident as I mentioned above. You should note that your boat can stay in Spain for as long as you care to leave it there without attracting any tax liability at all; the liability is due to your being in Spain for more than 183 days in a calender year. The clock restarts at zero as at 1 Jan each year.

 

[Tranona]

First let be stress I am not a tax accountant. That said I believe that the 183 day thing is not absolute. If you have your main family home in the uk, pay tax in the uk on savings or a pension, have a car taxed in the uk etc etc then you can remain a uk tax resident even if you exceed 183 days in spain. More knowledgable comments very welcome.

It is not as simple as that. If the Spanish authorities believe you are resident according to the rules they can levy the tax. As suggested you can avoid this by choosing to become resident in advance. The sting is that the application of the law is very variable and poorly applied so many people cruising in Spain are probably breaking the rules, but there is not a mechanism for monitoring peoples' movements. There have been recent reports that the authorities are challenging boats that are on permanent berths and do not move. So it would be up to the owners to show that they are resident in another state and not in Spain.

 

[capnsensible]

It is not as simple as that. If the Spanish authorities believe you are resident according to the rules they can levy the tax. As suggested you can avoid this by choosing to become resident in advance. The sting is that the application of the law is very variable and poorly applied so many people cruising in Spain are probably breaking the rules, but there is not a mechanism for monitoring peoples' movements. There have been recent reports that the authorities are challenging boats that are on permanent berths and do not move. So it would be up to the owners to show that they are resident in another state and not in Spain.

On wednesday morning, a British flagged yacht in use by a Gib based sailing school was arrested in Ceuta. The exact reasons are still a bit unclear even to the solicitor that has been engaged but appears to be some sort of tax issue. The owner has been told it will take about 3 months to come to court where he will have to pay 12% of the boats insured value plus, one presumes, a fine. He is forbidden to even get on the boat to even empty the fridge, guess that will be lovely in 3 months. You can imagine how he feels about this.

As other details emerge I will post them.

 

[Wansworth]

Dont understand that,my boat was impounded by the Spanish(precintado) and I was allowed to be on the boat when I wanted,just couldnt go to sea.......could be a nasty skirmish in the battle of Gibralter.

 

[capnsensible]

Dont understand that,my boat was impounded by the Spanish(precintado) and I was allowed to be on the boat when I wanted,just couldnt go to sea.......could be a nasty skirmish in the battle of Gibralter.

Have spoken to both the owner and the skipper since the arrest and they have been warned of the penalties for going aboard. I was moored next to them on tuesday night, left about 1030 so missed the actual event.

It appears there was an element of nastiness from the Customs guys (Aduana). One of the femalel marina staff was reduced to tears by bullying. Gibraltar was mentioned too.

It is of concern to other operators. Talk about biting the hand that feeds you though. Bonkers.

 

[temptress]

First let be stress I am not a tax accountant. That said I believe that the 183 day thing is not absolute. If you have your main family home in the uk, pay tax in the uk on savings or a pension, have a car taxed in the uk etc etc then you can remain a uk tax resident even if you exceed 183 days in spain. More knowledgable comments very welcome.

You are correct BUT you can be TAX resident in more than one country at the same time. So be careful.

If you exceed the 183 days in Spain you become de-facto resident and liable to Spanish income tax - same as the UK. Each persons situation is different and you need to get professional advice.

 

[JamesFrance]

OK. If you have a UK based income, you will remain liable for UK income tax no matter where you are resident, except in a few circumstances which for most of us normal mortals are not worth getting into. As far as most EU countries are concerned, there are agreements in place that income is only taxed once, so once you've paid your UK income tax, thats it.

I don't believe this to be correct except for a UK government pension which is taxed at source (not the standard old age pension but one for government service). Dividends of UK companies also come with tax credits which can be offset against an foreign tax liability when you are resident in another EU country (double tax treaty). In general once you become tax resident you will be liable to tax on your worldwide income and also to any other taxes such as wealth tax in your new country of residence. As a resident of France I now have no tax liability in the UK and bank interest is paid without any deduction on account of income tax, the same applies to my small private pension which is no longer taxed at source. I submit an annual French tax return and am taxed the same as any French person.

 

[Wansworth]

Have spoken to both the owner and the skipper since the arrest and they have been warned of the penalties for going aboard. I was moored next to them on tuesday night, left about 1030 so missed the actual event.

It appears there was an element of nastiness from the Customs guys (Aduana). One of the femalel marina staff was reduced to tears by bullying. Gibraltar was mentioned too.

It is of concern to other operators. Talk about biting the hand that feeds you though. Bonkers.

One reason

 

[Wansworth]

One reason

Something not quite right with this forum.......anyway as I was saying one reason why I bought and keep my boat in the UK for the time being you never know just how the authorities will react and now with a facist government in place nasty authorities my get the backing of government...

 

[GrahamM376]

It appears there was an element of nastiness from the Customs guys (Aduana). One of the femalel marina staff was reduced to tears by bullying. Gibraltar was mentioned too. It is of concern to other operators. Talk about biting the hand that feeds you though. Bonkers.

Any connection to the boat they took in tow and tried to arrest in Gib waters last year?

 

[Bertramdriver]

We were thinking of ending up in northern Spain after a stint in France next year. I've just lost interest. I want to go somewhere where I'm welcomed. I'm probably spoilt by too long in Greece.

 

[jordanbasset]

We were thinking of ending up in northern Spain after a stint in France next year. I've just lost interest. I want to go somewhere where I'm welcomed. I'm probably spoilt by too long in Greece.

I would not let it put you off, wonderful welcoming country.