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Posted Fri, 06 Oct 2023 15:18:04 GMT by
I am a member of an LLP, we own commercial property, and lease it out. We pay tax via annual self assessment. All of my tax for 2021 has been fully paid for and confirmed. I have been 'resident' in Spain for all of 2021. I have made resident tax returns in Spain. The Spanish Tax agency have queried the tax from LLP income I recieve. They, despite HMRC tax summaries, copies of my 2021 SA form and the submitted tax computations, all of which clearly show the source declaration and taxable amounts. The acknowledge the taxable income and taxable amount, but will not acknowledge that everything has been paid. Consequently, the Spanish Tax authority refuses to recognise tax paid, HMRC certification of tax paid, bank account records showing tax paid. They have assessed tax on our UK at Spanish rates. Despite an Appeal process, they have now imposed a very substantial tax assessment and and penalty, and now, month by month are willfully withdrawing a fixed sum plus interest from our accounts, without consent, for the next 25 months to April 2025. They have clearly said that the DTT is not applicable. They have clearly said that a member's profit on investment is not an income. They have clearly said there is no evidence of payment. We are at a total loss as to how to prove our circumstances and get the surplus tax back. We believe that as we are still resident they will pursue the same strategy for 2022 and 2023. Can you suggest a viable route to overcome this intolerant and punitive tax interpretation.
Posted Fri, 13 Oct 2023 12:47:40 GMT by HMRC Admin 13 Response

Hi
Income from property is not covered by double taxation agreements and can be taxed in both the country the property is in and the country in which you are resident.
You can apply for a certificate of residence to give to the Spanish authorities to support that you are a resident of the UK - get-a-certificate-of-residence

Thank you

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