Posted by Nick Day on 10 Jul 2012
Clampdown on Tax Evasion for Expats in Spain
Expats living in Spain who have undeclared offshore accounts could be targeted by the Spanish government as they clampdown on tax evasion.
Hacienda, Spain’s tax authority, is according to reports, investigating any form of foreign investments or overseas pension income and it appears to be working closely with the tax authorities in other countries including some tax havens to identify those individuals who may not have declared everything.
The Spanish government is trying to save €8.2 billion (£6.6 billion) by the end of the year by cracking down on tax evasion. They hope it will help reduce the country’s massive public finances shortfall.
To save its ailing banking sector, Spain was recently forced to apply for European bail-out funds of up to €111 billion (£89 billion).
It is strongly advised that anyone with undeclared income assets uses the current tax amnesty in Spain, which runs until the end of November 2012 and allows people to avoid criminal penalties.
If you are from the UK but have property in Spain and/or spend time in Spain you may need to determine your UK and Spanish tax residence positions, and “treaty tax residence” position under the UK/Spain Double Taxation Treaty in order to decide where you pay your tax liabilities. Special rules may apply if you are not domiciled in the UK.
If you are in any doubt whether this effects you or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or firstname.lastname@example.org.
- Tax Relief For Residential Mortgages
- Overseas Pension Changes 6 April 2017
- Property Partnership Incorporation and SDLT
- Top 10 Expat Tax Tips for Individuals Moving to the UK
- Non-Resident Landlords – UK Tax Update