Spanish tax: declare or be punished...

Wednesday, December 26, 2012

Spanish tax: declare or be punished...

So what's new?

Since 1st February 2013 British (or any other) expats in Spain will have to declare their overseas assets. New Spanish tax regulation decrees Spanish Residents to inform to the Spanish Tax Authorities about their worldwide assets under certain conditions.

Who need to declare?

• Individuals and companies residing in Spain (183 days plus of continued residence)
• Permanent establishments in Spain.
• Branches of non-Spanish resident companies.
• Entities defined as non-wound up estates (dormant or non-declared inheritance assets)
• Holders, representatives, authorized, beneficiaries or account holders of finance accounts overseas.

What needs to be declared?

• Overseas bank accounts if exceeding €50,000
• Overseas properties, or rights on overseas property, exceeding €50,000 in total.
• Titles, companies' shares, etc located overseas and life insurance, life income rents exceeding €50,000

Any exemptions?

• Already declared. A tax resident in Spain that has already informed about these assets due to his tax liabilities (i.e. a self-employed person who regularly provides accounts including accounts overseas).
• The minimum €50,000 mark applies to each group of assets. Anything below the mark does not need to be declared.

Spanish tax regulation for foreign residents

How to declare?

You can do this personally, before a tax office, by registering online ( or through an agent such as us.

Deadline to declare?

The deadline to declare is before 31st of March 2013 but the Spanish Tax authorities has extended it to 30th April 2013.

Penalty for not doing so?

Failure to inform will give rise to severe penalties (from a minimum of €10,000 to a maximum of 150 per cent of the amount to be declared that has not been declared).

Do I have to do this again next year?

Unless there is an increase of €20,000 or above in the valuation of your assets (considering the three types together), no new tax return declaration will be required.

With help from Fernando Scornik Gerstein LCP


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