Spain tells British expats to declare overseas assets
Spain tells British expats to declare overseasassets'Prohibitive' penalties await those whofail to declare overseas assets to the Spanish tax authorities.
British people living in Spain must declareall their assets held outside the country to the Spanish authorities undernew rules designed to target tax evasion.
Residents have until April 30 to declare allrelevant overseas assets worth more than €50,000 (£44,000) and could facehuge fines for not complying.
Assets include bank accounts, property andother movable assets such as shares, life insurance policies and annuityincome.
David Truman, a partner at accountancy firmMenzies, said: “My understanding is that clients are considering or areleaving Spain as a result of the introduction of the new rules.
“It does appear to be concerning people,and it does appear to be driving people out of the country.”
British expatriatesare considered residents in Spain if they spend more than 183 days a yearin the country, or if their spouse and dependent minor children live there.
The Foreign Office estimates that 800,000British nationals live all or part of the year in Spain. Residency is difficultto measure, but estimates vary from 250,000 to 400,000.
Residents must declare the value of theirassets on December 31 last year and failure to do so could result in finesexceeding the value of the asset.
Mr Truman said: “They are asking people todeclare their assets, which will give them the ability to cross-check thatinformation with what you have put on your tax return.