Spanish tax
Apr 20th 2015, 5:29 pm
#46
Lost in BE Cyberspace
Joined: Feb 2008
Posts: 5,624
Re: Spanish tax
[QUOTE=Fred James;11623810]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.
/QUOTE]
Some people i have spoken to have never submitted a Spanish tax form even though I have tried to say they should even if only for their UK State Pension. They ignore my comment saying as they pay UK tax on Government pension they do same for state pension. They choose to ignore what I say so I don't bother any more. Thing is they wont have got an e mail as Hacienda wont have an email address for them! Ignorance is bliss I suppose until the wheel comes off!
/QUOTE]
Some people i have spoken to have never submitted a Spanish tax form even though I have tried to say they should even if only for their UK State Pension. They ignore my comment saying as they pay UK tax on Government pension they do same for state pension. They choose to ignore what I say so I don't bother any more. Thing is they wont have got an e mail as Hacienda wont have an email address for them! Ignorance is bliss I suppose until the wheel comes off!
Apr 20th 2015, 6:01 pm
#47
BE Enthusiast
Joined: Jun 2013
Posts: 990
Re: Spanish tax
Amazing, the ignorance( or cunning) of many of my fellow expats
Oh, how we'll laugh if they get caught!
Oh, how we'll laugh if they get caught!
Apr 20th 2015, 7:00 pm
#48
Forum Regular
Joined: Apr 2015
Posts: 88
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.
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.
i can afford.to do what you have mentioned above.. but the missus wants settle...so we can have children. And wants the children settled in one country..
Apr 21st 2015, 1:45 pm
#50
Senior Moment
Joined: Jan 2006
Location: On the edge
Posts: 20,460
Re: Spanish tax
As many of you know, I was an expat with significant assets in the UK. Again, as many of you know one of the reasons I left was because I too asked the question, why does the Spanish tax man want to know so much about my worldwide assets.
I wasnt worried about current taxes, which had all been taken into consideration in my finances. I WAS worried about the Spanish economy and possible future taxes they might levy to try and steady their boat.
I still stand by that idea, even though at the time I got the impression you all thought I was panic mongering.
I'm no longer part of the system, so on that side of things I'm safe ..... but if I was considering moving to Spain at this moment it would be something that I would be thinking about very carefully indeed if I had significant UK assets.
As i said at the time, people with little or no assets outside Spain seemed to think it was nothing to worry about. It's clear why, because for you it wasn't. For those that have spent their lives saving and investing, it's a different story and it has to be taken into consideration
I wasnt worried about current taxes, which had all been taken into consideration in my finances. I WAS worried about the Spanish economy and possible future taxes they might levy to try and steady their boat.
I still stand by that idea, even though at the time I got the impression you all thought I was panic mongering.
I'm no longer part of the system, so on that side of things I'm safe ..... but if I was considering moving to Spain at this moment it would be something that I would be thinking about very carefully indeed if I had significant UK assets.
As i said at the time, people with little or no assets outside Spain seemed to think it was nothing to worry about. It's clear why, because for you it wasn't. For those that have spent their lives saving and investing, it's a different story and it has to be taken into consideration
Apr 21st 2015, 2:00 pm
#51
Forum Regular
Joined: Apr 2015
Posts: 88
Re: Spanish tax
As many of you know, I was an expat with significant assets in the UK. Again, as many of you know one of the reasons I left was because I too asked the question, why does the Spanish tax man want to know so much about my worldwide assets.
I wasnt worried about current taxes, which had all been taken into consideration in my finances. I WAS worried about the Spanish economy and possible future taxes they might levy to try and steady their boat.
I still stand by that idea, even though at the time I got the impression you all thought I was panic mongering.
I'm no longer part of the system, so on that side of things I'm safe ..... but if I was considering moving to Spain at this moment it would be something that I would be thinking about very carefully indeed if I had significant UK assets.
As i said at the time, people with little or no assets outside Spain seemed to think it was nothing to worry about. It's clear why, because for you it wasn't. For those that have spent their lives saving and investing, it's a different story and it has to be taken into consideration
I wasnt worried about current taxes, which had all been taken into consideration in my finances. I WAS worried about the Spanish economy and possible future taxes they might levy to try and steady their boat.
I still stand by that idea, even though at the time I got the impression you all thought I was panic mongering.
I'm no longer part of the system, so on that side of things I'm safe ..... but if I was considering moving to Spain at this moment it would be something that I would be thinking about very carefully indeed if I had significant UK assets.
As i said at the time, people with little or no assets outside Spain seemed to think it was nothing to worry about. It's clear why, because for you it wasn't. For those that have spent their lives saving and investing, it's a different story and it has to be taken into consideration
Ive never declared anything like this in uk.. seems bizarre..
There are loopholes etc.. as to avoiding tax.. i could transfer house to.my parents or sister. Etc.. but is it worth it..
Personally.. its really off puttin especially not.knowing why they want such details.. ive been told that reason behind it is called a rich tax which is anything over 700k euros of assets you pay tax on..
I would love to move to spain for lifestyle and weather etc.. but they dont have put people moving there..
you think.the spanish government would be looking after ex pats.. especially ex pats who bring all there uk earned cash with them.and spend it in spanish economy... shops.. bar restaurants etc..
Steve
Apr 21st 2015, 2:36 pm
#52
Lost in BE Cyberspace
Joined: Apr 2009
Posts: 7,749
Re: Spanish tax
As i said at the time, people with little or no assets outside Spain seemed to think it was nothing to worry about. It's clear why, because for you it wasn't. For those that have spent their lives saving and investing, it's a different story and it has to be taken into consideration
It is a pain to declare them each year but until there is a government accouncement about seizing foreign assets then I am not too worried
If that were to happen then yes I may contemplate leaving Spain, but until then...
One has to understand the context of why modelo 720 was brought in. It was following the financial crisis and under petition from Brussels that too many Spanish tax payers were hiding their wealth in foreign property and savings accounts
Since then, 100s of Spaniards have been taken to court for tax fraud. So the regulations are doing their job
Apr 21st 2015, 2:39 pm
#53
Retired and loving it!
Joined: Sep 2007
Location: Ontinyent - Valencia region (campo)
Posts: 5,160
Re: Spanish tax
I have hundreds of thousands of pounds of foreign assets all declared on the modelo 720
It is a pain to declare them each year but until there is a government accouncement about seizing foreign assets then I am not too worried
If that were to happen then yes I may contemplate leaving Spain, but until then...
One has to understand the context of why modelo 720 was brought in. It was following the financial crisis and under petition from Brussels that too many Spanish tax payers were hiding their wealth in foreign property and savings accounts
Since then, 100s of Spaniards have been taken to court for tax fraud. So the regulations are doing their job
It is a pain to declare them each year but until there is a government accouncement about seizing foreign assets then I am not too worried
If that were to happen then yes I may contemplate leaving Spain, but until then...
One has to understand the context of why modelo 720 was brought in. It was following the financial crisis and under petition from Brussels that too many Spanish tax payers were hiding their wealth in foreign property and savings accounts
Since then, 100s of Spaniards have been taken to court for tax fraud. So the regulations are doing their job
.... and what about the fact that the EU has or may be about to rule that the Modelo 720 is illegal due to the high penalties associated with it?
Apr 21st 2015, 2:51 pm
#54
Lost in BE Cyberspace
Joined: Apr 2009
Posts: 7,749
Re: Spanish tax
But still, Mitzyboy is absolutely correct in his decision making. If the regulations freak you out and worry you then best to be in a country where you are comfortable with the taxation system
If Podemos get in power later in the year (although I dont think they will) then who knows, they could impose a wealth tax on all foreign assets. They have hinted at it
Last edited by cricketman; Apr 21st 2015 at 2:53 pm.
Apr 21st 2015, 5:01 pm
#55
Senior Moment
Joined: Jan 2006
Location: On the edge
Posts: 20,460
Re: Spanish tax
Well yes, that is another reason to think that legal foreign assets are safe and the Spanish government won't be imposing the terrible fines for just an admin error
But still, Mitzyboy is absolutely correct in his decision making. If the regulations freak you out and worry you then best to be in a country where you are comfortable with the taxation system
If Podemos get in power later in the year (although I dont think they will) then who knows, they could impose a wealth tax on all foreign assets. They have hinted at it
But still, Mitzyboy is absolutely correct in his decision making. If the regulations freak you out and worry you then best to be in a country where you are comfortable with the taxation system
If Podemos get in power later in the year (although I dont think they will) then who knows, they could impose a wealth tax on all foreign assets. They have hinted at it
I guess I was in a different position to many though as Spain was never a permanent move for us .... just another section of our life that we enjoyed tremendously.
Apr 21st 2015, 7:41 pm
#56
Lost in BE Cyberspace
Joined: Jun 2005
Location: Puente Esuri
Posts: 6,903
Re: Spanish tax
As many of you know, I was an expat with significant assets in the UK. Again, as many of you know one of the reasons I left was because I too asked the question, why does the Spanish tax man want to know so much about my worldwide assets.
I wasnt worried about current taxes, which had all been taken into consideration in my finances. I WAS worried about the Spanish economy and possible future taxes they might levy to try and steady their boat.
I still stand by that idea, even though at the time I got the impression you all thought I was panic mongering.
I'm no longer part of the system, so on that side of things I'm safe ..... but if I was considering moving to Spain at this moment it would be something that I would be thinking about very carefully indeed if I had significant UK assets.
As i said at the time, people with little or no assets outside Spain seemed to think it was nothing to worry about. It's clear why, because for you it wasn't. For those that have spent their lives saving and investing, it's a different story and it has to be taken into consideration
I wasnt worried about current taxes, which had all been taken into consideration in my finances. I WAS worried about the Spanish economy and possible future taxes they might levy to try and steady their boat.
I still stand by that idea, even though at the time I got the impression you all thought I was panic mongering.
I'm no longer part of the system, so on that side of things I'm safe ..... but if I was considering moving to Spain at this moment it would be something that I would be thinking about very carefully indeed if I had significant UK assets.
As i said at the time, people with little or no assets outside Spain seemed to think it was nothing to worry about. It's clear why, because for you it wasn't. For those that have spent their lives saving and investing, it's a different story and it has to be taken into consideration
Apr 21st 2015, 7:59 pm
#57
Just Joined
Joined: Apr 2015
Location: London
Posts: 2
Re: Spanish tax
Alsopr I can actually help with this, last month I had the same problem, I was an expat that moved back to UK and was going to get taxed heavily on my savings etc for moving back. So I contacted a company in the UK that have an office in Spain, they helped me avoid paying more tax and actually earned me more interest. Do you want their details? They are really friendly and can do everything over the phone or face to face.
Apr 21st 2015, 8:06 pm
#58
BE Enthusiast
Joined: Jun 2013
Posts: 990
Re: Spanish tax
Alsopr I can actually help with this, last month I had the same problem, I was an expat that moved back to UK and was going to get taxed heavily on my savings etc for moving back. So I contacted a company in the UK that have an office in Spain, they helped me avoid paying more tax and actually earned me more interest. Do you want their details? They are really friendly and can do everything over the phone or face to face.
Apr 21st 2015, 8:25 pm
#59
Just Joined
Joined: Apr 2015
Location: London
Posts: 2
Re: Spanish tax
I wasnt paying tax in the middle East but im technically a British citizen, also I was contributing into a UK Pension. The Australians have just had it made easy they get a tax break if they return :-( and they can still save without getting taxed. You got have a different type of bank account for that i think?
