Modelo720 has been with us for a while now and yet there are still some who have never made the declaration. Just to remind you as we head towards the March 31st deadline for filing, this is an annual declaration where you need to report your various categories of overseas assets such as investments and property. The declaration is required annually if your asset base has changed or if you have not previously reported. Hacienda will then use the information you include on the return and compare this information with the details you supply on your income tax, capital gains tax and wealth tax returns.
Basically Modelo 720 is a very clever database of information allowing the authorities to determine what assets are held outside of Spain and potentially outside the reach of the tax authorities here. Of course with further enhancements to Exchange of Information Agreements and Common reporting Standards across Europe and throughout the World in 2016, Modelo 720 might well be rendered useless because the information will be readily available in any case.
Why are we telling you this? Well Modelo 720 is a pain to complete and there are severe penalties for getting it wrong or for non completion. If I told you that there is a way of holding assets outside of Spain without the need for making the declaration and without the need for a Trust arrangement (holding your assets in a Trust doesn’t avoid either the need for the 720 declaration or Exchange of Information) would that make your life easier? Rather than start fretting every year at this time you could relax knowing that your affairs were all in order and there was no need to make a declaration.
Now really is the time to do something to put your affairs in order always remembering that there are perfectly legitimate solutions that can ease your tax burden whilst at the same time making you totally tax compliant with the authorities.
Why not look at Form 720 as an opportunity to restructure your investments and assets properly so you are no longer at risk from the taxman and at the same time you are taking advantage of some of the tax breaks available to Spanish tax residents. Wouldn’t it be nice to wake up in the morning completely relaxed that all your assets are held in a completely transparent way and that you are not jeopardising yours or your families’ future by any non disclosure.
Let us 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.
Interested? Speak to one of our qualified expat advisers on tel 951319727 or email email@example.com.