MIKE COADY

Financial Expert | Business Excellence | Growth Expert
Mike is an award-winning financial expert and a well-known leader in the financial industry.Having taken two of his previous firms to Chartered Status in the UK and also achieved the prestigious National IFA of the Year Award – Highly Commended.In addition, Mike is a well known Independent Financial Adviser and Money Coach. Qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Founding Fellow of the Institute of Sales Professionals (FF.ISP), a Fellow of the Institute of Directors (FIoD) and featured as a highly qualified Financial Adviser in Which Financial Adviser.
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Expats in Spain should contact their IFA on new overseas assets rules

Mike CoadyExpat Advice Expats in Spain should contact their IFA on new overseas assets rules

Expats in Spain should contact their IFA on new overseas assets rules

The millions of expats of all nationalities who are tax resident in Spain, that’s all those who spend more than 183 days in the country, have until 30th April to declare any overseas assets worth more than 50,000 euros in any single asset class to the Spanish tax authorities.

Failure to do so could result in extremely heavy fines and additional taxes on top – therefore, expats are advised to ask their financial adviser sooner rather than later about the various genuine, efficient solutions to these new reporting requirements.

Not only should people seek professional advice in order to learn about the ways to mitigate the reporting obligations, but they should also contact an adviser because the process of submitting the required 720 declaration form for an individual is extremely long-winded and extraordinarily complex as it has to be done with e-codes using a government website.  Plus, of course, it will be even more complicated for those who don’t speak Spanish.

The latest declaration measure is, in my opinion, clearly an attempt to bolster the Spanish Treasury’s dwindling funds and, due to the scale of Spain’s economic woes, I suspect that the authorities will be taking a very strict line with anyone caught not declaring their assets.

The Spanish tax office, better known as ‘La Hacienda’, says it could issue a tax of 52 per cent, plus a fine of a massive 150 per cent of the 52 per cent to those who do not report their overseas assets worth more than 50,000 euros.

Spain’s new declaration regulations, which will make reporting offshore assets an annual obligation from now on, come into effect following the tax amnesty coming to an end, whereby tax residents with undeclared overseas assets were able to report them to the taxman, and pay a maximum of 10 per cent.

Mike Coady
Mike Coady

Mike is recognised at the forefront of financial planning as a financial advice mentor who demands only the best outcomes for both individuals and businesses he works alongside.

Comment
  • In my view, everyone who lives in Spain has to consider a number of things

    1. Residency is a matter of fact not choice – if you live in Spain full time you are (de facto) resident for tax purposes. No argument and no escape. The simple test is tis “are you her for 183 days or more which include temporary absences?”

    2. Second is that non reporting is not an option. The Spanish government will fine individuals horrifically if caught

    3. Residents should realise that as many tax priveleges exist in Spain as in the UK. Reporting is not a tax declaration, it is a statement of assets. This base will form the future of tax reporting – nothing else.

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