Expats living in Spain with undeclared pensions outside of Spain will have six months to declare this income and pay back taxes without any penalties, according to a new draft bill on income tax and income tax of foreign residents approved by the Spanish cabinet last Friday.
Once passed, this legislation will mainly affect foreign expats living in Spain.
In theory Governments are getting better at sharing information, so it should be easier for the Spanish Govt. to discover expats not declaring pensions abroad.
Should Expats in Spain start to worry? I don’t know, but treasury supremo Cristóbal Montoro (pictured) recently told the Spanish parliament that 27,696 expat pensioners had tax inspections last year, compared to 800,000 in total, implying that they don’t get much attention from the Spanish tax man……