Expats living in Spain have been informed that they are now legally required to inform Spanish authorities of the value of assets they hold outside the country.
As a result of new measures aimed at preventing tax evasion, expats living in Spain have until the 30th of April to inform authorities in the country of the total value of any assets they hold that are worth more than €50,000. The purpose of the exercise is to allow the relevant authorities to cross-check the information that expats submit on their tax return form.
Failure to complete the reporting requirements may result in significant fines, which equate to larger amounts that the value of the assets you hold. The minimum penalty for failing to declare an asset is €10,000, together with income tax being payable on any undeclared income, late-payment interest charges, and additional penalties as high as 150 percent of the total tax due on the asset.
The new requirements will impact people who are considered to be residents in Spain. To qualify as a resident you are required to spend more than 183 days per year in the country or if your spouse and dependent children live there.
According to reports coming out of Spain, the new requirements have forced many expats who are living in Spain to reconsider their future in the country and many British expats have started to make serious plans to leave life in Spain behind.
Discussing the new regulations, a spokesman for the Spanish tax authority disclosed that the reporting requirements had been introduced in response to increasing problems with fraud, which entailed the requirement “to establish a specific obligation of information on assets located abroad.” He advised any expats who were unsure as to what information they are required to report to visit their local office for help and advice.