From January 1st 2021, Gibraltar British nationals will pay the non-EU rate for yearly non-resident taxes, currently 5% higher than the EU rate. You can find below some explanations in regards to changes in non-resident tax rates in Spain for British nationals.
The Main Change: Losing EU exemptions
As leaving the EU, Gibraltar British nationals will no longer be eligible for certain exemptions that were linked to the EU status.
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24% instead of 19%
British nationals will be liable for a higher rate after Brexit: 24% instead of 19% on income earned.
Thinking of becoming a resident in Spain? You can have full info here: https://costaluzlawyers.es/blog/brexit-questions-for-uk-nationals-and-family-members-regarding-residency-in-spain/
End to Exemptions
Below a list of benefits from exemptions that British nationals will be losing from January 1st 2021:
- Interest and capital gains from personal property obtained by residents in another EU state.
- Profits distributed by subsidiary companies domiciled in Spain to parent companies in another EU state.
- Dividends and profit shares from pension funds in another EU state.
- Fees paid to a company resident in another EU state.
- Capital gains reinvested in a habitual residence within the EEA.
.Did you know? Brexit does not affect the bilateral double taxation agreement between the UK and Spain.
Get Professional Advice
Tax regulations are complicated in all countries: to make sure you comply with taxation rules and only pay what you need to pay, consult the experts. The Costaluz Lawyers fiscal team has years of experience helping foreigners in Spain – residents, and non-residents – with professional tax advice. Find out about our services here https://costaluzlawyers.es/for-you/tax-representation/ and then get in touch for a free consultation.