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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4995
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have a limited company in the UK if I as the sole director

Customer Question

I have a limited company in the UK
if I as the sole director took a dividend but was a resident of the Canary islands which country would Income tax be payable in and at what rate.
At present I am resident in the UK but have property in Tenerife so Canaries residency is a possibility for me.
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question...If you were a resident of the Canary Islands you would pay income tax to Spainish authorities on your worldwide income.Savings income including dividends are taxed as follows:First 6,000 Euros 20% to be reduced to 19% in 2016and the highest rate is 24% to be reduced to 23% in 2016More information on taxation in Spain is covered herehttp://canaries.angloinfo.com/information/money/income-tax/how-income-is-taxed/How dividends paid are taxed in the UK will change from 6 Apr 2016 and more information on this can be found herehttp://www.rossmartin.co.uk/directors/tax-efficient-remuneration/1591-summer-budget-2015-dividend-tax I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.