NEW REGULATIONS re CASH, TAX ON OVERSEAS ASSETTS and automatic Residencia and

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21 Nov 2012 11:12 by johnzx Star rating in Spain. 5247 posts Send private message

 

This is from anrewsletter which I edit (it is not my info) :- 

 

CASH PAYMENTS

Regulations forbidding businesses making cash payments to other business of more than  2,500 euros take effect this week. Those breaking the new law will be fined 25% of the sum involved.  Transactions between businesses and private non-resident individuals are also now restricted 15.000 euros, and the transaction receipts must be kept for 5 years.

 

Residence Permit for buying property

 

The Government is considering giving Residence Permits to foreigners who buy a dwelling costing more than 160,000 euros.  Prime Minister Rajoy’s comment on this bizarre proposal was, ‘We need to sell those dwellings!’

 

In our opinion, taking into consideration all the problems of being a foreign resident in Spain, the proposal is more of a threat than an advantage.  It will have no effect on the decisions of citizens or Northern Europe, but may be to the benefit of ‘shadowy tax evaders and tricksters’ from outside Europe.

 

Residents must report assets abroad

 

As from the first quarter of 2013 Foreign residents in Spain must, in the same manner as the Spanish, report to the Spanish tax authorities all their assets abroad, meaning basically in their home country.  On the declaration form, in preparation, taxpayers must declare all accounts in foreign banks, properties and property rights, insurances and all other assets with a value of more than 50,000 euros.

 

 

 

 

 


This message was last edited by johnzx on 21/11/2012.



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21 Nov 2012 13:47 by CostaBlade Star rating in Riviera. 115 posts Send private message

Surely no one in Spain does "cash" payments do they !!!





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21 Nov 2012 18:02 by CostaBlade Star rating in Riviera. 115 posts Send private message

On a serious note !    Cash payments (or Black money as it is more commonly known)  is endemic in Spain (and many other countries including the UK)  and no amount of legislation is going to put a stop to it, "what the eye dosn't see"

To be honest you can't blame the people, they see the politicians "lining their pockets" and think "what is good for them is good for me"

Hard to argue with that.

On "Automatic residencia"  that will never happen,   it's a bit like Camerons "big society"  it sounds good but not practical in reality.

And as for people declaring their overseas assets, that won't happen either.  The tax authorities might be chasing the "big boys" but haven't time for ordinary folks.

Just my opinion of course.





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21 Nov 2012 18:59 by johnzx Star rating in Spain. 5247 posts Send private message

Because of the lack of trust in cheques, it was normal practice in Spain when say buying a property, for the price to be paid in cash, even where there was no back hand payment.  I, and my son, have bought and sold several properties that way.

 

I understood that it has been the law that one's worldwide assets have always had to be declared when making a tax declaration in Spain as a tax resident.  I have alway declared off shore assets and paid the appropriate tax.

 

'Ordinary people' have been getting letters from Hacienda follow the utility companies supplying infomation that services (electricity etc) are being used in properties which are being declared an not let.  And remember,  the biggest slice of tax income comes from 'ordinary people'.  The rich can afford to pay for good tax avoidance advice.

I see no reason why automatic residencia could not come about.  After all if one makes a rich person resident they leagally become liable on their worldwide assets to pay their tax to the hacienda.  I suspect though there will not be many volunteering `to join the club.'





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23 Nov 2012 09:35 by ComaskeyProperty Star rating in La Zenia. 5 posts Send private message

ComaskeyProperty´s avatar

At least the government is trying to do something to improve the situation. As John says the biggest slice of tax income does come form ordinary people and one reason the country is in a mess is that people hav avoided taxes for so long. And they do have a purpose. But it will be interesting to see how effective these measures actually are.



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COMASKEY, LA ZENIA, ORIHUELA COSTA 0034 966773453 enquiries@comaskey.com



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23 Nov 2012 14:30 by camposol Star rating in Camposol. 1408 posts Send private message

johnx- slightly confused about the date to be decared. I have read they must be declared before march 31st 2013, and some say from the 31st March.why are they just not declared on the yearly tax return, before june 30th? Also, if the assets in each of the 3 groups-banks, investments and property are less than 50,000 in each group, apparently they need not be declared, yet someone may have  100,0000 worth of assets scattered around, with less than 50,ooo in each group,  therefore having substantial assets,yet doesn't have to declare it to the tax office!





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23 Nov 2012 14:46 by johnzx Star rating in Spain. 5247 posts Send private message

Camposol, 
 
I am sorry but at present anyway, having not researched it,  I cannot add anything to my first post, which as I said was not my info, I had only edited it so that it would read well (it was written in 'English' by a Norwegian)

I would think that more specific info will be available in the next few months.





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