Though the deadline has passed it is still vital that expats declare details of their assets as the longer they wait, the more that potential problems will grow.
London, UK (PRWEB UK) 16 May 2013
The Spanish government introduced new rules at the start of May that mean expats living there need to declare full details of all assets worth over €50,000 regardless of the country they are held in. According to an article titled "Worrying Times for British Expats Living in Spain," published on May 12th 2013 on Shelteroffshore.com, details of these assets must be presented by a professional tax advisor. As the deadline for declaring assets was at the start of May, it is more important now than ever that expats make sure they declare their assets in order to mitigate the size of fine, if any, they may be required to pay.
David Retikin, Director of Operations at Pryce Warner International Group, commented: “Though the deadline has passed it is still vital that expats declare details of their assets as the longer they wait, the more that potential problems will grow. Failure to declare assets in time or properly can mean large fines and accordant interest payments. Anyone that is unsure if they are fully declared or has not yet declared should contact an expat tax advisor without delay.”
According to an article titled "Disenchanted Expats Drain Away From Spain," published on the 12th May 2013 on Iexpats.com, concerns over these reporting requirements have led to an exodus of expats so large that the population of Spain has fallen this year for the first time in recorded history.
The reporting requirements that are now in place are essentially the same as before, meaning no new information is being requested by Spanish authorities.
The key change is that the penalties for not declaring or not declaring properly have dramatically increased.
Leaving Spain is not necessary if individuals are concerned about these changes, it is more important to ensure proper declaration. There is no suggestion that declaring will expose expats to any greater tax bills or asset grabs. Leaving Spain would not help as individuals would remain liable for payments even after leaving if they are not properly declared.