Patrick2976

Apologies if this has been raised elsewhere but there are some very important changes about to take place for Spanish residents in terms of cross border tax reporting. Around 50 countries (including Spain and the UK plus dependencies) have officially signed up to something called the EU Administration Co-operation Directive. Doesn't sound very interesting but it's effects will be long lasting. The agreement basically sets out the structure for automatic exchange of tax and finance information in what is know as the Common Reporting Standard. It will come into place over the next 2 to 3 years. The result will be that any bank accounts, insurance policies, investments in stocks and shares etc held by an institution within these 50 countries must report its existence (and in some cases balance) to the account/policy holder's tax authority in the country of residence. It also includes beneficiaries of trusts and foundations (which Spain doesn't recognise anyway). This is going to have big implications for some folks - especially if they have not fulfilled their obligations with the modelo 720. More http://en.wikipedia.org/wiki/Common_Reporting_Standardor here

cricketman

Yep absolutely

I've been getting my finances in shape to align with this over the past few years

And if Podemos get in power, believe me they will be checking the details!

Porth

'if' as in Podemos is the operative word. Do you truly think they have the infrastructure knowledge and ability to run 'a country' Whilst we are coming back the very thought has resulted in a limitation of the time we will spend in Spain. Mainly holidays know and then between our homes in France and the UK.

Do understand all the legal rules as to residency and centre of economic interest. And yes continue to pay my taxes in France seemingly too their GDP did grow and by more than Germany in the last quarter.

When please is the Spanish national elections?

Porth

We were only in Javea last year for about eight months before returning to France. However as you all know there is a large ex pat community in the area of Javea Very seriously the modelo? caused quite a few to return to London and simply to spend holidays in Spain. I also know of someone who paid off a huge Home Counties mortgage and I mean huge for their daughter and to rid themselves of the potential downside of the modelo.

However France is not much different but its tax regime is better for us than Spain hence spending the majority of our time in France.

Wherever lay your head enjoy your lives.

snikpoh

What "potential downside to the modelo"? If you are doing things legally, the modelo doesn't make it any worse!!!!!!!


People who don't understand or who want to live below the radar (illegally) are the only ones who need to worry!

Porth

I understand but let me make my position absolutely clear. Wherever I am resident I will pay my tax and here it is France and for some 35 years. I always but always use a great firm of Accountants in France.

So not a problem but last year there were so many meetings at U3A and the like by Blevin Franks that one can understand some degree of fear. I do not understand the Modelo save it has a cumulative effect on wealth creation and asset holdings? Is that about right?

I referred to the payment of the mortgage that was upon the advice of Spanish Lawyers in Fetter Lane London so one would like to think their advice is sound.

snikpoh

Modelo 720 was nothing more than a reporting exercise.

Spain needs to know what assets ANYONE holds outside of Spain. For this reason, they have set the limit at 50k in any of the (three) asset classes.

Most countries have similar requirements now.

If, for example, one has savings in excess of 50k (accumulated sum), then this needs declaring. But then the authorities need to know about it anyway as tax would be due in Spain on any interest accrued - so no change there. Similarly with property; IHT/succession tax will be due on any properties held by the expat - so Spain needs to know about these assets (to prevent tax evasion).


I think Blevins were involved as (a) there was potential business for them and (b) to allay the fears of many expats who simply didn't understand.

cricketman

Politicians make decisions and ask the civil service to implement them

It is actually the civil service who runs the country. The politicians just tell them what rules to work to

Maybe you should watch an episode of Yes Minister

davidinspain

The idea of democracy is a strange illusion.

Patrick2976

[QUOTE=snikpoh;11471890]Modelo 720 was nothing more than a reporting exercise.

Spain needs to know what assets ANYONE holds outside of Spain. For this reason, they have set the limit at 50k in any of the (three) asset classes.

Most countries have similar requirements now.

If, for example, one has savings in excess of 50k (accumulated sum), then this needs declaring. But then the authorities need to know about it anyway as tax would be due in Spain on any interest accrued - so no change there. Similarly with property; IHT/succession tax will be due on any properties held by the expat - so Spain needs to know about these assets (to prevent tax evasion).

Not quite correct there - if the property is outside Spain (the UK for example) and the beneficiaries are not resident in Spain then no IHT is payable in Spain (as it is the beneficiary and not the estate that is taxed here).

Fredbargate

Confused.com

Porth

Cricketman Whitehall farce. However back to the question I posed you some weeks ago what is a Chinaman?

cricketman

A left handed leg spinner's googly of course

snikpoh

[QUOTE=Patrick2976;11472033]

Quote:

Originally Posted by snikpoh

Modelo 720 was nothing more than a reporting exercise.

Spain needs to know what assets ANYONE holds outside of Spain. For this reason, they have set the limit at 50k in any of the (three) asset classes.

Most countries have similar requirements now.

If, for example, one has savings in excess of 50k (accumulated sum), then this needs declaring. But then the authorities need to know about it anyway as tax would be due in Spain on any interest accrued - so no change there. Similarly with property; IHT/succession tax will be due on any properties held by the expat - so Spain needs to know about these assets (to prevent tax evasion).

Doesn't it depend which will is being used (Spanish or UK rules?) or am I confused?

Patrick2976

The latter quote was in answer to a point raised by Snikpoh. Not sure why you would be confused.....