Re: Spanish tax
 

There was loads on the form 720 and having to make the declaration a while back when the rules came in. Basically you will find (not always but mostly) those that have retained assets in UK are suspicious and don't like the declaration as concerned where it it may lead. Those who sold up lock stock and barrel and didn't retain assets in UK can't see why those that did should be concerned. If you look back to that thread you will see it was a very very long one. The declaration worried some enough to revoke residency and either move back or claim to be non resident. The rules are as they are I,m afraid you just have to work with them .

Re: Spanish tax
 

Totally agree..

Ive always paid taxes..
Just want know all the ins and outs etc before committing to making the move to spain.. or to choose to live uk 6 months and spain 6 months.. or even portugal for a few months..

There is so many options to choose..
But after working damm hard all my life and having a property portfolio in uk. I want to live a good retirement in nice weather..

out portfolio brings in roughly £3000 per month in sterling...

So about £750 per week for 2 off us.. is this enough to live on in spain..

This 750 also has to pay for repairs in uk property.. so estimated £500 a week


Steve

Re: Spanish tax
 

I am currently doing the 6 month way split into a couple of 3/2 month stays. I would like to go permanent but wife is still working and this declaration malarky concerns her as well. There are of course still people who just don't bother with the rules down to the individual I suppose . As for if your income is enough ? I suppose down to life style property rented or bought etc. When I am over I live on much less than you mention but I am a man of simple tastes .

Re: Spanish tax
 

On that amount you can live like a king, and have some to spare!
We live on far less than that, many others do as well.

Re: Spanish tax
 

[QUOTE=roxypotter;11623599]Surely if you rent your properties, they do produce income?
When you declare your assets outside Spain, on the 720, the Spanish taxman will have a handy checklist when it comes to the dreaded Inheritance tax,
Before, they used to take a very casual view to worldwide assets and tended to just ask for IHT on assets in Spain, but that's all changed now, and they can see rich pickings to be had, which in your case would be very rich if your beneficiary is resident in Spain. ( unless, of course you had a very clever accountant)

Re: Spanish tax
 

[QUOTE=roxypotter;11623599]Spain has a category of tax called "wealth" tax that uk does not have. I think above €740,000 there is a tax on your assets as well as income.

Re: Spanish tax
 

[QUOTE=EsuriJohn;11623710]Seriously.. Thats un real.. must be loop holes.. put property in different names etc..

Thanks for the heads up

Re: Spanish tax
 

[QUOTE=roxypotter;11623714]Isn't that another term for fraud?

Re: Spanish tax
 

[QUOTE=Neptuno;11623762]Some class.it as fraud.. others see it as common sense

Personally.. if i can get out of paying taxes i will.. its not.fraud.. its Called human nature..
steve

Re: Spanish tax
 

That depends on the assets.

Many expats who have had to submit the asset declaration will have done so because they have property in the UK.

If you are tax resident in Spain, clearly you have to pay tax on any actual rental income from a UK property, but what most people do not realize is that a UK property is treated just like a second property in Spain or a holiday home for a nonresident. In other words the dreaded "imputed rental income tax" rules come into play.

A resident who has a second property in Spain pays this tax, but it also applies to property in the UK.

Most people in this situation, in the past, have not paid this tax because either they were not aware of it or, if they did, they thought they could get away with it as the Spanish taxman would not know about the property.

Now that these properties have to be declared as an overseas asset, that has all changed and the taxman can immediately check whether have declared them on your income tax declaration or not and take action to recover up to 4 years back taxes and fines.

So, declaring your assets can mean an extra tax bill. However, I don't think they have scraped that far down the barrel yet, but it will come eventually.

Re: Spanish tax
 

The Spanish taxman seems to see it as fraud, and will fine accordingly!

Re: Spanish tax
 

[QUOTE=roxypotter;11623767]You may call it human nature or common sense, but it is classed as tax avoidance which is perfectly legal.

Re: Spanish tax
 

It is certainly a minefield especially if you retain assets to the value of Roxypoter. How ever given that you are quite young and get good income from your assets why not just spend 6 months renting in Spain followed by 3 months in say Portugal with 3 months in UK. Staying tax resident in UK and not having to worry about the 720? Not sure on Portugal rules for long stays.
It would be interesting to hear how many people that have not declared assets or paid income tax in Spain on say pensions paying it instead to UK have been prosecuted? I know the fines are high for not declaring, if they are used and followed up.

Re: Spanish tax
 

Probably not many, but Hacienda have just sent out loads of emails advising people that they must declare foreign pensions and have given an amnesty until June. There will be no fines if you declare for the last four years.

We have to assume that if you don't take advantage of this amnesty they will finally start chasing people and fining them.

Re: Spanish tax
 

[QUOTE=Fred James;11623773]But often immoral!