Interdean Responds to Changes to Offshore Tax Assets

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Expats must inform Spanish authorities of offshore assets such as properties and pensions.

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The new law allows this, and for no reason should discourage expats moving to Spain, it is just now more of a priority to be aware of tax rulings and requirements

British expatriates living in Spain must comply with a new tax ruling set by the Spanish authorities or face hefty fines. British born residents who now live fulltime in Spain need to inform the Hacienda about any offshore tax assets that total more than £43,000. The change in the law is set to catch tax evasion and fraud and includes assets such as property, vehicles, pensions and bank accounts that residents may hold in different countries such as Great Britain.

Failure of reporting assets based abroad could result in fines of up to 150 per cent of the assets value as well as late payment charges and unreported asset fines adding to a minimum of around £15,000. Additionally any failure to declare assets worth more than £103,000 could lead to criminal charges.

Expats are also required to detail the average values for bank accounts in the last three months of a year including current and savings accounts and credit cards in all currencies.    

The law has been criticised for its extreme, harsh approach to expats and accused of using them to reform its economy. Unemployment is currently at 26 percent and the country is in its second year of recession.

Interdean, the UK’s leading moving company has been helping people moving to Spain for over fifty years and has seen a change in the prosperity of the country, ‘Although Spain has many expats from all over the world, but especially the UK, it is in a time of economic downturn just like the rest of us and is looking for ways to fight crime and raise funds. The new law allows this, and for no reason should discourage expats moving to Spain, it is just now more of a priority to be aware of tax rulings and requirements.’

Interdean expects to see UK residents continue to move to Spain throughout 2013.

Interdean have been helping people move throughout the world for over fifty years, offering a range of services including international moving assistance, excess baggage help, shipping, air freight and storage to worldwide destinations such as Australia, Hong Kong, Canada and Thailand. Interdean also offers further support such as visa assistance, banking, insurance and pet relocation as well as student focused packages. The competitively priced company also offer help for moves throughout the United Kingdom and Ireland.

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Ampreet Sandu
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