Re: Re: VAT 10 % on new propertys?


The relevant question for forum users is how these new tax laws will effect the Spanish property market and the future performance of the Spanish economy.

As I see it all these tax impositions can only have one result. That is a negative one. The 10% tax in January on all property purchase and now the intention to tax foreigners on all overseas assets and income will hurt. Anyone considering retiring to Spain in the future needs to consider the tax implications very seriously.

There is a €5k fine for each overseas bank account that you don’t declare. Ignorance of the law is not an excuse.

The financial risk of avoidance is no longer acceptable or sensible. The simple way to avoid becoming a fiscal resident is spend no longer than three months annually in Spain. That is not consecutively, it’s total time. However make sure you can prove you don’t to the Hacienda. Their assumption will always be that you do.