Assets Outside of Spain Can Mean Big Pain

Fiduciary Wealth Team

What have you been doing about the annual asset declaration requirement Modelo 720? Have you completed a return, tough wasn’t it? Unfortunately the reality is that if you have assets outside of Spain, even if these are within a trust or an offshore company then you will need to declare them and be prepared to suffer tax penalties if you haven’t been disclosing income or gains you have been receiving. Hacienda will check the information on Modelo 720 to see that the right taxes have been paid for income tax and wealth tax declarations.

All across Europe and beyond tax authorities are closing in on expatriates holding investments in another jurisdiction or within an offshore company or trust and who are not declaring income and gains. Whether, for example, you have money invested in Jersey, assets within a Maltese trust, or have set up an offshore company in the hope of avoiding paying tax you are now facing the reality of having to disclose those assets and settle any past tax liability and pay taxes due moving forward.

Is the hassle really worth it? There is an extremely effective and legitimate way to hold assets outside of Spain without having to disclose them on Modelo 720 and yet at the same time be able to benefit from a tax mitigation strategy that avoids Spanish succession tax on first death- a strategy which is being enjoyed by countless expatriates resident in Spain. Shouldn’t you join them? Why pay unnecessary tax on savings and investments when if structured properly they can be held in a way that minimises your tax liability moving forward.

Of course you can escape the net by not being Spanish tax resident, however you have to ensure that you do not spend more than 183 days in Spain or the authorities will automatically treat you as tax resident whether you have Spanish residencia or not. Hacienda continues to diligently check for those who overstay their welcome by spending more than the allotted time in Spain.

Taxes in Spain can be high but with the right strategies in place it is possible to plan your future so that the taxman is not the main beneficiary. After all you came to Spain to enjoy the good life not to pay unnecessary taxes.

Let us help you. We would like to start by offering you a FREE private consultation (worth £500) to assess your current financial position and explain how our Spanish tax reduction strategies can help.  If you already have a clear understanding of your current situation we can offer a FREE tax planning assessment instead (worth £1,000). Just think you will be getting FREE advice on tax planning for Spanish residents as well as retirement, savings and wealth tax mitigation strategies.

Call tel  951319727 for a meeting with a cross border expert or email