Declaration of Foreign Assets

  • Declaration of Foreign Assets

    Overseas Assets Declaration - update 25th March 2013

    Another apparent modification is that insurance policies which have been sold to Spanish residents by foreign companies under the appropriate agreement and licence appear not be declarable under the following Q&A taken from the Agencia Tributaria website. Some of the companies who offer these types of policy are SEB (Ex-Irish Life International), Skandia Ireland, and Prudential International.

    Hacienda Q & A (Spanish compliant insurance bonds)

    Advice should be taken from your accountant or solicitor as to whether a policy should be declared as there may be concern that assets are reported twice creating a risk of double taxation. If in any doubt, please contact me annette.bowen@spectum-ifa.com .

    Overseas Assets Declaration - update 7th March 2013

    If you have not yet submitted a return of overseas assets, where applicable, I now have access to a Costa Blanca North accountant who will charge €15 per person. I believe this to be well below the average that is currently being charged for these returns. Please contact me to find out more.

    Also, we have now been advised that you will be able to submit these returns online once you have received an electronic key (password). To get this key you have to visit the Hacienda IN PERSON and they tell us it takes approximately 3 weeks to get it.

    If you have any questions about these or any other financial matters, please feel free to contact me annette.bowen@spectrum-ifa.com. Please bear in mind that if you hold any savings, ISAs, PEPs, National Savings, Premium Bonds or investment bonds in the UK, we can help to make these far more tax efficient to the Spanish authorities than in their current situation.

    Report, Record, Review & Reallocate

    This subject is creating more and more confusion and there seem to be contradictions between the original legislation, the current legislation, and the actual form to complete (Modelo 720). For example, we had understood that all pension schemes should be reported yet the answer from the Spanish Tax Office´s website seems to suggest that this is not always the case, especially when no income is being taken from the scheme.

    See this link to the Spanish Tax Office website. Although there is an English section on the website, the answers are all in Spanish. Hacienda Q & A (Pensions)

    This is why The Spectrum IFA Group, whilst not being accountants, feel duty bound to give the best advice within the parameters of their licence to operate in Spain. With this in mind, we feel that it is essential that you visit a qualified professional accountant to take expert advice and REPORT your assets accordingly.

    You should RECORD exactly what has been reported so that there is no confusion in future years and you will have a base figure to work from when calculating any growth which could trigger another report.

    As you have taken the trouble to go through all your assets, now is the time to REVIEW them and perhaps REALLOCATE some of these assets to something more tax efficient and compliant as far as the Spanish authorities are concerned. This is likely to alleviate the necessity to report in the future whilst allowing you the opportunity to pay less tax.

    For more information contact me annette.bowen@spectrum-ifa.com