Jaime Vives

Director (Spain)

Wincham Consultants Limited

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By Jaime Vives - Thu 4th Apr 2013

 

Tumbit Approved Partner

Citizens or Spanish companies that are legal tax residents of Spain are now obliged to file a declaration disclosing the ownership of all non-Spanish assets to include foreign bank accounts and real estate.

This disclosure is not just for direct ownership of foreign assets but also for persons or Spanish companies who are beneficial owners, or have 50,000 euros or more in foreign assets. This is clearly meant to catch not only private individuals but beneficiaries, settlers of trusts and other legal structures.

Fines for not filing or failing to disclose an asset start at the rate of 10,000 euros, so it is imperative to check if this applies to you!

Worst possible scenario

Should the Spanish tax office discover that a Spanish Tax Resident owns an undeclared foreign asset it could presume that the whole asset value represents undeclared taxable income. The tax office would regard the asset value as general income generated in the oldest of tax years (e.g. four years ago). Tax rates vary between 24% and 56% in Spain (15/30% Corporation Tax), including potential fines of 150% on the unpaid tax, late payment interest plus the fines for failing to disclose, the total payment to the tax office would almost certainly be substantially more than the value of the hidden asset.

The above declaration excludes the value of government or private pension funds.

Click the link through to our website (Below) for a further explanation and request a call back to discuss your wealth and tax declarations, we can handle these Spanish tax matters for 2012 for a fixed fee of £250 including Vat per person.