DECLARATION OF OVERSEAS ASSETS

Just when you thought it would be okay to put your head above the parapet and relax, fiscal residents in Spain are to be subjected to more pressure.  It is already a known fact that tax residents should pay their taxes on their worldwide assets in Spain.  To make sure that you make a full declaration a new tax form has been put into use which you must complete.  The relevant information, listed below, must be provided to the tax authorities on or before the thirty first of April on the new forms.

On these questionnaires, you will have to give a detailed breakdown of: All bank accounts, properties and annuities, trusts and investments overseas. This will also apply to companies who have not as yet declared these assets. Corporate accounts must be included.

The assets will be divided into three main areas:

1.    Bank accounts

2.    Insurances, shares and other investments

3.    Properties or rights to properties abroad

If the total of the assets listed in these three groups exceed the value of 50.000 euro’s, then it is compulsory to present the details to hacienda.

This obligation extends to all parties who are partners, representatives, or beneficiaries of any of the above.  And just to add to your burden, failure to complete with this ruling will result in a substantial fine (minimum of 10.0000 euro’s).

I thank my accountant for the information.  I do though have to follow with information which could be of assistance when morally considering what your actions will be.

 This new ruling has come at a time when Spain is suffering extreme poverty whilst government figures and their buddies are being denounced for being in possession of hundreds of millions of euros.  These questionable funds are lodged in offshore accounts. Will they declare these appalling amounts on the new forms?  I think not.  There is not a box or application to fill in black, stolen, or laundered money.

Whilst you are pondering on whether or not to comply with this ruling, please take into account that recently, on a Spanish television program, a senior member of the tax department in Spain stated that, seventy percent of affluent companies and individuals bank offshore.  They are NOT declaring these funds in Spain.  It has also been admitted that in this country, taxes are paid in the main, by salaried workers.

I hope the information provided in this article, will assist you in reaching a verdict, on what your response to this ruling will be.

EUROPEAN DRIVING LICENCE AND THE SPANISH VERSION

There was some panic on the Costa, as expatriates read various irresponsibly written articles, which were recently published in a few of our English language newspapers.  These apparently informative articles, with titles such as; ‘New European ruling,  a medical certificate must accompany your European driving licence to legalise the permission’  One of the authors was either lethargic or solely interested in sensationalistic titles, obviously without checking his or her information,  readers were provided with a link which lead them to the British embassy website.  Sigh of relief?  No wait for it, this link was supplying useful information from DVLA.  This is handy if you are living in the UK and you are seeking information regarding your British driving licence.  

Whatever the rules from Europe, Spain or any other European countries, the facts are confusing. Trafico have had to do their homework but do not appear to have the solution.  They too suggest that there is a law which agrees with the health test.  Until there is some logical and consensual information, my suggestion is that you either continue with your present licence or, (as the Spanish law states) ‘residents in Spain, must conform to Spanish laws’ this taken literally means, changing your permit for the Spanish equivalent.

Changing you licence is a simple process.  A Spanish model is very useful both relieving you of any problems with the traffic police and as an additional form of identity.  For those using addresses in the UK to continue to illegally renew their licences in the UK will find that this avenue will in time, be closed to them.  Please note; the official medical testing centres, will only provide you with a medical certificate valid for three months, this (where necessary) used to exchange your licence.  You will not be provided with a certificate for five or ten years. This is only available with a Spanish licence.  For those who have already taken a medical test, please check at the bottom of the certificate where you will see printed ‘caducado en tres meses’ (expires in three months).

NO LOSE SITUATION FOR LAWYER'S IN SPAIN

We had until a few years back, experienced long periods of what was commonly known as the second property boom.  Besides criminal and domestic affairs, Spanish lawyers were inundated with work.  Their potential clients were buying off plan, on plan and even no plan properties.  Then, the crisis was suddenly upon us and the need to employ legal assistance dried up for a while.  

Expats in Spain forum.

During this period, attorneys were still making a decent living, most reverting back to the type of cases that they had graduated from various universities to perform.  With the slump in the property market there was now a glut of unfinished, unpaid for and even illegal properties on the market.  

Many of the promoters and builders eventually disappeared.  Some were to commence building in other countries.  Others went underground for a while.  Several went bankrupt, only to start up again with new companies.  Only the minority, ended up in the courts. 

The dreadful news, that many purchasers were not going to obtain the properties, which were rightfully theirs, brought back the queues to the doors of the same lawyers who had acted for them in the past.  They would now be responsible for presiding over the claims to be put into the courts.  This, in order to try to recoup the massive payments made on the same properties, which they had assisted their clients to purchase in the first place.  These dwellings had either not been allotted to the rightful owners, completed, or were about to be embargoed by the banks.  For these very reasons, it has been a no lose situation for lawyers in Spain.

Be forewarned, if you are considering buying a foreign vehicle in Spain.  Vehicles such as cars of various types which are right hand drive can still be put onto Spanish plates.  Vehicles which are not manufactured in Europe, must meet the stricter regulations.  The law is different when it comes to larger vehicles.  Anyone considering purchasing a van or Caravan which is also right hand drive and registered abroad, should take note that they will not be able to register the vehicle with Spanish plates.  Although that there are expectations that this law is due to change this year.  We must be realistic and not anticipate this change to occur in 2013.