Good point Dom Would anyone just freely declare that they had X amount in offshore banks...or is it just my way of thinking

A great number of British expats seems to be breaking their necks to declare, meanwhile I have not met any Spanish with property abroad who are even bothering making the declaration.

I was speaking to a neighbour and they are not making the declaration as although they paid over 50k for a shop and house property a few years ago, they have told their accountant that it cost less.

They are not in the least bit worried, it seems to be a "foreign rush to declare that doesn´t we have no intention of doing" according to them.

I'm so convinced it will only be the UK over fifties who bother with this. A compliant age group of a compliant race. I agree about the 10 % as well Domino I know what I am like for accessing on-line forms information etc trying to understand it and I am sure many are the same.

The UK Over fifties compliant age group?? You mean the age group of revolt that was bought up in the non compliant break the system 60's?

While talking to my gestor he mentioned that the declared purchase price of the house is the buying price plus all the costs associated with the purchase.
Maybe I have missed that but in all the forums I have read I did not register that important item.

Its confirmed here, as the last question in the FAQs:

http://www.agenciatributaria.es/AEAT...derechos.shtml

This is "fairer", in that when they eventually screw you for the capital gains, this higher figure will be used rather than the actual purchase price.

My gestor is also of the mind that this exercise was conceived as an image-cleaning exercise to show how tough they are on fraud, not to deliberately sting the foreigners. I can believe they didn't think of foreigners at all, I have always felt foreigners get zero consideration by the state.
Nonetheless I've no doubt Hacienda will be giving plenty of consideration now to make the most of their bonanza of shopping lists.

we didn't have taxes in those days we knew everyone

but in fact those were the days of 95% taxation, pop stars, dj's were flaunting their Rollers and it wasn't until a few years later the taxman came after them they realised their contracts were biased heavily against them, their agent's had ripped them off, they didn't own the rights to their own music etc etc

the current situation is that the Hacienda appears to be on a trawl, but will they admit that it is only the expats who are have filled in their form ?
or do Spanish with some money/assets just tell their accountant to do it and send the bill ??

Yep that's the one. Gone all respectable with age having got it out of their system in the sixties

Just how much would the Spanish government charge in tax on an asset such as a home in Ireland? Would it be treated as a capital gain, which in Ireland is a third of the value of the asset?

Thanks
Helen

The only taxes that are currently applicable to a property in Ireland is Spanish wealth tax which for a couple starts at 1.4 million Euros. It would need to be a very big house! In addition to that there is a "Imputed Rental Income" tax which would apply but that is quite low.

If you sold it then Spanish capital gains tax would apply but you could offset any tax paid in Ireland.

Thank you. How could I off set the tax in Ireland?

Helen

If you sell and pay Irish tax on the gain you can deduct that tax from any CGT that you end up paying in Spain.

Thanks. You don't pay any tax on the sale of the personal home so would it be ok so?

Yes that's our age group alright!
I seem to remember we turned the establishment (and our parents) grey before their time with our non compliance.

The fact that it was your home would not necessarily affect the Spanish tax liability and the fact that you paid no tax in Ireland just means you would have no tax to deduct from the Spanish tax.

If you reinvested all the money in a new home in Spain it is just possible that you could persuade the Spanish taxman that this qualified for an exemption from CGT.

I am confused why you are concerned about the Form 720 situation because that implies that you are tax resident in Spain so how can your "home" be in Ireland?

My plan is to sell my home here in Ireland and down-size to a smaller one. I would then hope to buy a bungalow in Spain from the profit. I would like to keep the smaller house here in Ireland as well if possible.

I would like to use the property in Spain for holidays during the year and eventually, maybe after a couple years, move full time to Spain.

What kind of taxes could I expect to pay then, when I do move? Sorry about all the questions, but I have been trying to choose between Spain and Turkey, which I know well. It seems to be more realistic to choose Spain but the taxes etc. have me fearful now.

Thank you for all the advise. I do appreciate it.

Helen