Rosenov y Quintero
make the switch today, it’s easy!
make the switch today, it’s easy!
We’re here to offer a friendly face, streamlined service and ongoing support from an English speaking accountant.
We strive to make handling your accounting and taxes simpler, more efficient and easy to understand. We work with residents in Lanzarote and across the other Canary Islands, using online forms and video meetings for those who aren’t close by to keep communication simple.
There’s been some confusion about having a “residencia” on the Canary Islands and being a tax resident here.
If you have a residencia (or TIE) and spend more than 183 days a year here, you’re considered a resident for tax purposes. This status can change from year to year, depending on how much time you spend in the country.
As a business owner or self-employed freelancer, the business will always be taxed in the place where it’s established, regardless of where you spend your time. So if you’re registered as self-employed or set up a business in the Canary Islands, you’re obligated to declare your taxes here no matter where you live throughout the year.
Whether you’re self-employed, run a business, employed or own a second home in the Canary Islands, you’ll need to submit your annual tax returns before the end of June each year.
There are exceptions for very low incomes; if your income is less than €15,000 a year from a single Spanish Employer, or less than €22,000 a year from a couple of sources.
However, we still recommend you do it to check if you can claim a tax refund. The tax office doesn’t do this automatically, so if you don’t check, you’ll never know!
We start taking appointments in April and have until the 30th of June to submit your returns. You’ll normally meet our English speaking accountant at the Lanzarote office, but if you live in one of the other Canary Islands, we can arrange a zoom meeting.
Once you have an appointment, we’ll let you know which expenses can be deducted, such as medical expenses or optician fees.
In most cases, you’ll declare your rental income quarterly and pay quarterly and annual tax returns based on that income.
If you’re employed and this is something you do to supplement your income, you can declare your earnings in your annual tax return which keeps life a lot simpler.
Whether you’re just getting started or looking for ongoing support, we can get you set up, guide you with the basics, advise you with deductible expenses and help keep more of your rental income where it should be – in your pocket.
As a tax resident in the Canary Islands, you’ll have to pay tax on your pension here if it’s a private pension, whether it’s local or from your original home country. The only exception is if you receive less than 15,000€ from 2 sources.
However, if you have a public pension from working in the public sector, such as the NHS, government or police force, you’ll pay tax on it in your country of origin.
If you aren’t sure, we can check the official agreement with the Spanish government to see which option applies to you.
A letter from the tax office can feel a bit scary, especially when you don’t understand the lingo.
First of all, don’t panic!
It’s often just to communicate that they need some clarification and we can help you work out what action you need to take, if any.
It’s important you contact us as soon as you receive it, as they normally give you ten to fifteen days to respond.
If you own assets abroad worth over €50,000 we’ll declare them using the model 720, which is submitted in March for the previous year. You only need to declare them again if the value of your assets increases by more than €20,000.
It’s important to mention that the model 720 must align with your income tax return. What do we mean by that? Well, if your assets have generated income for you, that income must be declared here, and we make sure that both declarations (the income tax return and the model 720) match.
It’s a simple process and we can give advice based on your individual situation, but it gives you peace of mind knowing everything is above board and you won’t have to worry about any repercussions later on.
If you sell your property here in the Canary Islands, you´ll have to declare it in the annual tax return (the Declaration de Renta) that we submit the following year.
The good news is, if you’ve lived in it for over three years and you purchase another property within two years of the sale, you’ll get tax relief based on the amount reinvested.
You’ll pay tax on the profit made from the sale, but you can offset expenses related to the purchase and sale such as notary and lawyers fees, commissions paid to the estate agent, tax for the sale and home improvements where you actually modified the building, such as extensions.
We can calculate all of this, and give you more detailed advice on the expenses you can deduct to make the most of your profit.
Fast and effective service filing our tax returns again this year! The whole process is slick from start (with appointments online) to finish. Ivo’s given fantastic advice in other areas too, can’t recommend him enough.
Steve Larkin
It’s worth mentioning these for any of you who are new to the islands and unsure of the local tax obligations here.
Every year you’ll pay the IBI, which is the equivalent of the local council tax, and the Basura, which is a contribution towards the local rubbish collection service.
Your IBI is calculated on the cadastral value of your property and as such can vary a little from year to year.
Both of these are payable to the town hall, as is your car tax, but all of them can be set up to be debited directly from your bank account so you don’t miss any of them.
We can’t wait to meet you.
Send over your info and we’ll schedule a time to discuss your needs and find the best way to move forward.