londonbee

I hear from a few expats that in response to the recent asset declaration, assets are going offshore into countries that do not have information exchange agreements with Spain.

One expat liquidated his equity portfolio and shifted the balance to an Asian bank (I can't give details for obvious reasons). Now the equity account is closed in the UK, there is no apparently trace for Spain to follow up on.

I don't have any equity or investments in the UK so not affected by this but it seems an interesting answer to the potential intrusion of the hacienda in expat personal affairs.

The path doesn't seem so clear for those that may own less liquid assets - e.g. property or pensions however.

I'm also not sure why the drastic measures taken are necessary but it seems some expats are more worried about hacienda intrusion than paying tax.

But anyway, thought I'd share this.

Mitzyboy

Well, as I understand it .... you may well be able to shovel it off to offshore areas .... but thats exactly what the Spanish Tax authorities are seemingly trying to catch with Spanish Nationals

So if they do catch up with you then the same fines will apply

Fredbargate

But if the Spanish Tax authorities refuse to recognise and deal with an Offshore area how will they go about catching you?

londonbee

On top of that they *cannot* deal with jurisdiction because there are no tax information exchange agreements in place.

Patrick2976

It's not against the law to hold assets offshore. You just have to tell them and if it's in the right kind of investment vehicle they won't charge tax on it.

Fredbargate

There is an offer to Spain on the table for a TIEA agreement with Gibraltar, but Spain refuses to accept it.

Also

The Spanish right wing newspaper ABC has recently reported the Spanish ministry of foreign affairs has instructed its ambassadors world wide to make representations to the competent authorities in the various countries that ‘Spain does not accept that Gibraltar sign agreements on tax information exchanges where at the signing ceremony the United Kingdom flag is not on display’.

http://www.panorama.gi/localnews/hea...e&article=9867

Mitzyboy

Thats the risk you take .... thats presumably why they set the fines so high

I dont think it was said that it is against the law. I remember in the Uk some years ago Barclays after a court case had to disclose to HMRC all the offshore account holders they had. So, hopefully, they had the right kind of investments

rachelk

I took the easy way out and left the country


(Oh I wish I had enough money for this to be a concern...)