Spanish taxman taking unpaid taxes direct from accounts

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This topic contains 8 replies, has 5 voices, and was last updated by Profile photo of GarySFBCN GarySFBCN 4 years ago.

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  • #57149
    Profile photo of Anonymous
    Anonymous
    Participant

    Eye on Spain sent an email around from one of their legal sponsors warning that the Spanish taxman is starting to assume unpaid tax liabilities for foreign owners of property in Spain then deduct the amount or freeze the owner’s bank account, as illustrated below. Has anyone received such a letter, or been dealt with in this way by the taxman?

  • #113639
    Profile photo of Chopera
    Chopera
    Participant

    Being discussed on the other thread at the moment. I doubt if many on here would receive the letter though as I don’t think that many are holiday home owners.

  • #113647
    Profile photo of GarySFBCN
    GarySFBCN
    Participant

    How much of this is reality and how much of this is ‘hype’ by accountants, tax preparation companies, etc. who stand to gain business by using fear as tool for advertisements?

  • #113751
    Profile photo of angie
    angie
    Spectator

    As I understand it, residents of Spain who have total assets abroad of 50,000 euros or more as at 31st December 2012 have to declare such assets to Spanish Tax Authorities by March 2013 or risk fines even going to prison, and their bank accounts in Spain frozen.

    There is no Statute of Limitation either.

    That total amount seems fairly small and I imagine many Brits and others resident in Spain will have nest eggs including bolt holes back in their own countries of at least that amount. So let’s say one those assets is a property back home, how will that be taxed to Spain’s benefit if it remains unsold?

    Will Spain assume every resident will non-declare, and have a team of worldwide investigators looking into everyone, what are the practicalities of enforcing things if people say nothing? Presumably all bank accounts will be looked at to see what amounts are topped up on a regular basis from overseas accounts as many do in Spain? 🙄

    Big Brotherish ❓

  • #113754
    Profile photo of Anonymous
    Anonymous
    Participant

    @angie wrote:

    As I understand it, residents of Spain who have total assets abroad of 50,000 euros or more as at 31st December 2012 have to declare such assets to Spanish Tax Authorities by March 2013 or risk fines even going to prison, and their bank accounts in Spain frozen.

    Not total assets. Just each asset worth €50k or more. So you don’t need to declare several bank accounts of €49,999 or less.

  • #113755
    Profile photo of katy
    katy
    Spectator

    @garysfbcn wrote:

    How much of this is reality and how much of this is ‘hype’ by accountants, tax preparation companies, etc. who stand to gain business by using fear as tool for advertisements?

    Exactly! This scaremongoring rubbish has been doing the rounds has been around the forums for a couple of years. People who are worried should just make a declaration for the current year. There is lots of info’ around the forums how to DIY. No need to pay these dubious co’s to do it. Their charges are sometimes as high as the tax due!

    If anyone needs help the best people to use are the Spanish Gestors who charge a fraction of the above.

  • #113758
    Profile photo of angie
    angie
    Spectator

    Thanks for clearing that up (total amount of each asset), it was a bit vague on some reports.

    However, is there a tax due to be paid on such individual assets or is this just a case of declaring them so they are on record?

    Then, if there is a disposal of any or all of these and/or a profit, what rate of tax has to be paid to Spain if any and is this indexed? 🙄

    That’s all folks 😉

  • #113760
    Profile photo of katy
    katy
    Spectator

    If you are a tax resident in Spain then all your worldwide income is taxable in Spain. It has always been so. Inherit a property in the UK. and you will be taxed the high inheritance tax in Spain….if you declare it 8)

  • #113763
    Profile photo of GarySFBCN
    GarySFBCN
    Participant

    I have not been a fiscal resident of Spain. Based upon what I have read here and elsewhere, I may now be considered a fiscal resident of Spain because I am married to a Spaniard. There seems to be allowances to prove that even though I am married, I am not a fiscal resident. I’m meeting with tax specialists in Spain in February. Because of my work, I have not spent more than 2.5 months in Spain in any year and I pay a robust tax bill in the US.

    As I am planning to retire next year or the year after, and my fiscal residency may change to Spain, my question is this: Regarding the €50k rule, does that include retirement savings accounts? Also, are pension payments taxable?

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