Spanish Residents to pay tax on assets abroad

[annalivia]

As from March 31st anyone who is a Spanish tax resident has to report overseas assets  to the Tributaria. Another headache for anyone living in Fuerte with a house back home.

http://www.speedfinancialsolutions.com/new-reporting-requirements-for-assets-located-outside-of-spain/

http://www.uktaxes.net/modelo720.html

[Stone Free]

The deadline to declare your overseas assets to the Hacienda has been extended to 30 April 2013. 

[emmi]

Accoding to one of the articles, the declaration of overseas assets is for information purposes only - no tax is necessarily due

See here:

Good news though, this new declaration is just informative. That means, no payment is required so it's really worth to declaring your foreign assets.
If you are planning to comply with this new tax obligation don't forget to adjust your four previous tax declarations if they are incorrect!  As a resident of Spain (although you may not be aware) you are automatically required to report all Spanish and overseas assets or incomes (via La Renta) as income and capital gains tax (via Patrimonio) is applicable worldwide!
If you do have more than 50.000€ in foreign asset's you will need some guidance.

I assume that those Residents with income generating assets have taken advantage of the Double Taxation agreement in which case they pay tax only once in whichever country they have chosen?  Not sure about all this but something to think about.

[fifi]

This is being discussed on Janet Anscombes website at the moment too if anyone wants to follow the thread. She has been getting advice from Blevins Franks on the matter. http://www.janetanscombe.com/news/new-rules-on-resident-foreign-assets-reporting.html/comment-page-1#comment-37406

[Spike On Q]

Where can you get the necessary forms??

Are they available on the internet?

[Blueboy7]

If its for information only and they are not going to act on it, why do they want to know?

[Stone Free]

At the moment they claim it is a fact finding exercise.  But as they are threatening huge fines for non-compliance, it appears they have an ulterior motive.

With the on-going scenario in Cyprus, a lot of North Europeans are getting really worried that this is a precursor to Spain seeking a bailout, and fulfilling their part of the deal by raiding bank accounts or imposing a draconian wealth tax.  Some expats are viewing this so seriously that they may consider becoming UK resident again. 

[Ivemovedon]

Theres ALWAYS an ulterior motive when someone wants your financial details. If the Spanish know you have assets abroard they will think they are entitled to even more of the money you may have in accounts in Spain. If i were an ex pat i would be looking very carefully at whats going on.

[fuertesol]

The requirement to fill in a tax form called modelo 720 applies to fiscal residents in Spain i.e. if you pay your taxes in Spain, then you have to fill in the form.If you pay your taxes in the UK, you are deemed to be fiscal non residents and modelo 720 does not apply.But don't quote me on this, do your own research.
We have done ours and this is the conclusion we have come to.

The fact that you have a residencia (the green form) has nothing to do with the tax obligations.

Check with your assesoria/lawyer which category you are in.The form modelo 720 must be filled in before April 30th.

Modelo 720 can be downloaded.Look under Tributaria Espana.

[bobbieball]

The requirement to fill in a tax form called modelo 720 applies to fiscal residents in Spain i.e. if you pay your taxes in Spain, then you have to fill in the form.If you pay your taxes in the UK, you are deemed to be fiscal non residents and modelo 720 does not apply.But don't quote me on this, do your own research.
We have done ours and this is the conclusion we have come to.

The fact that you have a residencia (the green form) has nothing to do with the tax obligations.

Check with your assesoria/lawyer which category you are in.The form modelo 720 must be filled in before April 30th.

Modelo 720 can be downloaded.Look under Tributaria Espana.

If you live in spain for more than 182 days in one calendar year you are deemed to be a tax resident, so if you live in spain & have assets over 50,000 euro in any other country you must declare those assets on form modelo 720.
If you fail to declare & were found out you face a minimum fine of 10,000 euro
you may also be required to pay back taxes for the last 4 years at the high rate of 52%.