Originally Posted by Fred James

Yes, if you are tax resident you must declare all property values at over 50k (purchase price is required).

Assets that are jointly owned will require two declarations and you declare the full asset value on each declaration with 50% participation.

As for past years non declaration of rental income then I would be inclined to declare it on this years tax declaration and see if they notice that you didnt declare previously.

Mortgages do not affect Form 720 as you still have rights to sell the house even though it is subject to a mortgage.

With rental, yes , you can deduct interest both in Spain and the UK as it is an expense against profits. Also remember that if it is not a short term let, in Spain you only have to declare 50% of the net rental income.

Originally Posted by fender2

I am still looking for a tax advisor, but I am itching for information, if anyone has the answers:

Do a husband and wife, who file a joint tax declaration, and own property outside Spain jointly, have to file two separate Modelo 720s?

For those people who have been ill-advised in the past regarding declaring interest or rental income, have you had any advice on whether to pro-actively approach the tax authorities to voluntarily redo all prior-year tax returns, or should you wait for the Spanish authorities to audit you and come asking questions?

Does the existence of a mortgage on property have any bearing towards filing requirements of the Modelo 720?

Can you deduct mortgage interest from rental income for foreign properties, in the same way you can for Spanish properties?

thanks very much for any replies.

Originally Posted by Helen Ireland

Excuse my ignorance but I'm new to the forum and I would like to know, if I buy a property in Spain and still have a small house in Ireland, will I need to declare my house in Ireland to the Spanish authorities?

Does this apply only if I were to move here on a full time basis? Can I not still keep my pension from Ireland and not get any payment in Spain. Secondly, how would they even know that I would be living there, if I'm not claiming anything and paying private health insurance?

Thanks
Helen

Originally Posted by Helen Ireland

But I bought my home in Ireland 23 years ago for much less than €50,000. Is that the price that counts? and if it is under, is there no need to declare it?

Thanks
Helen

Originally Posted by Fred James

The Spanish rule is that it is normally over 11 months rental contract. Basically it excludes holiday lets.

They introduced the 50% rule to stimulate letting to help the housing problems but of course that would imply that it was for lets where the renter "lived" in the property.

Yes, you each need a digital certificate to do the declaration online.

Don't leave it too late as I have heard reports of some problems with actually submitting the form - basically the computer just hangs up and won't send it. Make sure you have a backup plan.

Originally Posted by Patrick2976

I have a client in Mallorca who can't speak highly enough for the tax advisor he uses in Madrid. I'll try post a link to him. I have to say that I have no personal experience of this chap but from what I hear he's very knowlegeable.
This is his website; http://jullastres.es/wordpress/

Originally Posted by Helen Ireland

But I bought my home in Ireland 23 years ago for much less than €50,000. Is that the price that counts? and if it is under, is there no need to declare it?

Thanks
Helen

Originally Posted by Fred James

Correct

Originally Posted by Patrick2976

... The 720 declaration excludes pensions held abroad...

Originally Posted by fender2

according to the information posted on the previous page you would have to declare it, as presumably the value of the house on 31/12/2012 was over €50,000.

Originally Posted by Patrick2976

Here is a little help from an accountant I know. Hope it helps (nothing much new...) (SNIP) OK here's the long version.
Help and information with Modelo 720 tax law in Spain

AN INFORMATIVE SUMMARY OF THE NEW DECLARATION OF ASSETS AND RIGHTS ABROAD


All individuals and legal entities residing in Spain are now obliged to submit this new declaration by 30th April 2013, providing therein the following information for the year 2012:


1. BANK ACCOUNTS


In general terms, details must be provided of bank accounts whose aggregate balance on 31.12.2012 or average aggregate balance during the final quarter of said year exceeded €50,000.


The following information will be submitted:


· Balance on 31.12.2012


· Average balance for the final quarter of 2012


· Account number


· Date opened or closed


· Name and address of bank


These details must be provided both by the account holders themselves and those authorised to use them.


The above information need not be submitted by individuals or legal entities whose economic activities require them to use such accounts, providing the number, bank, branch and country of said accounts are recorded in their respective accounting books.


2. SECURITIES, RIGHTS, INSURANCE POLICIES AND ANNUITIES


Details need only be submitted if the joint aggregate balance of these assets and rights exceeded €50,000 on 31.12.2012.


The following information will be provided:


· Securities (company stakes and shares): number, type and value on 31.12.2012.


· Securities managed by other entities such as trusts: value on 31.12.2012.


· Life or disability insurance policies held with foreign-based companies: surrender value on 31.12.2012 plus the name and address of the insurance company.


· Temporary and life annuities: capitalisation value on 31.12.2012 plus the name and address of the insurance company.


The above details need not be provided by individuals or legal entities involved in economic activities, providing the assets and rights concerned are recorded individually in their accounting books.


3. REAL ESTATE


Information must be provided of any property or usage rights (e.g. timeshare) owned whose value exceeded €50,000 on 31.12.2012.


The following details will be submitted:


· Type of property


· Location: country, town, street and number


· Purchase date


· Purchase value


The above details need not be provided by individuals or legal entities involved in economic activities, providing the properties concerned are suitably recorded in their accounting books..


Observations:


· Where the total value of a single bank account or property held/owned by several individuals exceeds €50,000, details thereof must still be provided, with each holder/owner stating their corresponding percentage share.


· Once the declaration has been submitted, further submissions will only be required in subsequent years if the balance or value of the assets and rights concerned has increased by more than €20,000 during the year in question.


· The declaration may only be submitted via the Internet.

Originally Posted by fender2

thanks


according to the information posted on the previous page you would have to declare it, as presumably the value of the house on 31/12/2012 was over €50,000.

Originally Posted by fender2

then this, bolded above, is wrong.

Originally Posted by Fred James

There is absolutely no doubt that you declare the price you paid not the current value so a house costing less that 50K originally would not be declared.

Originally Posted by jimenato

So either patrick2976 is correct or Fred is. They can't both be.

Fred's post does appear to reach a conclusion that doesn't necessarily follow from the premise...

Originally Posted by jimenato

So a British person, resident in Spain, drawing a pension from a British pension provider doesn't have to declare the value of the pension fund?