andaluciaexpat

Hi,

I am a Spanish resident and pay tax here in Spain. I have some money invested in Gibraltar (only since tax yr 2010). My question is, I am legally bound to declare the interest earned in my Declaracion de la Renta?

My (Spanish) other half says not on your life, you'd be mad to, don't let the Spanish govt know you've even got it, or they'll fleece you. My accountant says, yes, declare the interest, because if they find out later on that you've got it, but didn't declare it, they'll fleece you then.

Are you legally obliged to declare income from Gibraltar if you live and pay tax in Spain? Or is it up to you, because it's a tax haven - ie most people don't because they don't have to, but if they get caught, they get into big trouble with Hacienda?

Can anyone please tell me either their experience, or just give me some advice?

I need to make a decision, with 30 June, the deadline for tax returns here in Spain, fast approaching.

Thanks

snikpoh

Legally, YES, you must declare it. They are really clamping down on such things now so it will only be a matter of time (especially since the new savings directive has been introduced).

If you have been 'clever' and invested via one of the approved Spanish 'wrappers', then the tax implications will be minimal. If, however, you are not within a Spanish approved scheme, then the cost implications could be enormous.

I have just gone through the (costly) exercise of moving my investments to such a scheme having been miss sold the wrong scheme by ZURICH some years ago.

Fred James

Tax residents of Spain pay tax on their worldwide income.

If tax has been deducted then you can normally claim it back on your declaration.

Rosemary

As Concierges for the Spanish section of BE we would like to say hello and welcome.

BE is a very large expat website, so if you have problems finding your way around we have concierges who will try to direct you. The moderators for the Spanish forums are Mitzyboy and Fred James, moderators are there to ensure that the site runs smoothly within the rules of BE. Problems and complaints should always be addressed to a moderador who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are friendly and helpful with a wealth of knowledge of the issues of living in Spain. At the top of the page you will find a quirkily named thread called Free Beer which is full of important and useful information. Hope you enjoy your time participating in the forums.

My understanding is that you pay tax on your worldwide income, therefore you need to declare the interest on the money you have invested.

Please let us know if you need any further help.

Rosemary and Graham

andaluciaexpat

I've never heard of a "wrapper", it's just invested with a private bank. So I'm going to get clobbered, right? Oh s***.

Rotor

Personally I`d take your other halfs advice The authorities only know what you tell them and unless you are "Mr Big" in the money laundering game they will take no interest in you

Better if you can use an address outside of Spain for your investments and monitor via the net .
Some people can cope with this type of thing , others worry and do it by the book but end up broke

Rosemary

Worldwide income..........so an address outside of Spain is irrelevant.

Rosemary

andaluciaexpat

I am definitely one to play it by the book, so I don't have to live in dread of a scary letter from the Hacienda about a wacking great fine for tax avoidance. Although I do get the point about them not being interested in small fry like me. I think it's about whether you prefer to pay up front, and maybe end up more out of pocket, or not pay and risk getting caught.

Rotor

Your missing the point , look up "leaving paper trails"

Rosemary

Totally agree with your attitude, it is called being sensible and having a conscience.

Rosemary

andaluciaexpat

Don't know about the conscience, it's more being a coward I think!! Comes with being British and law-abiding... OH is complete opposite, typical Andalucian, "Not even God pays tax in Andalucia" etc etc... We are at total loggerheads over this, no common ground whatsoever.

snikpoh

Halve the investment, then she can do what she wants and you can do what you want


How do you feel about making prison visits?

andaluciaexpat

No, he is not geting half the investment!!

EsuriJohn

Where?

Rotor

Google ,where else "tax avoidance paper trails"