Don?t Get Caught Out by New Spain Tax Laws

29.08.14

Please note that this article is over six months old. While Blevins Franks takes care to make sure that information is accurate on the date of publication, some content may change over time. You should not rely on the accuracy of legislation and tax information in this article; take professional advice for your circumstances.

An article by The Daily Telegraph highlights some key changes British expatriates living in Spain need to be aware of, particularly with regards to the double tax treaty and Spanish tax rates.

An article by Liz Phillips, published on The Telegraph’s website on 15th July, makes interesting reading for UK nationals who are tax resident in Spain. She advises that there are a number of changes on the way which could trip uninformed expatriates up.

In particular these relate to the double tax treaty between the UK and Spain which has recently been revised, and Spain’s relatively new offshore assets reporting obligation where you have to disclose your overseas assets or face heavy penalties.

On the positive side, the Spanish government has proposed to reduce Spanish income tax rates. Speaking to The Telegraph, Jason Porter, Business Development Manager at Blevins Franks, said:

The average income tax burden is expected to reduce by 12.5% – but taxpayers with earnings of less than €24,000 will pay 23.5% less tax.

The article also mentions the rules which make you tax resident in Spain, with Mr Porter explaining:

The centre of vital interests was introduced to prevent fraud where individuals maintained their whole life in Spain, but made sure they remained under the 183 day barrier.

You can read the full Telegraph article here – www.telegraph.co.uk/finance/personalfinance/expat-money/10967870/Dont-get-caught-out-by-new-Spain-tax-laws.html

Tax rates, scope and reliefs may change Tax information has been summarised; an individual is advised to seek personalised advice.

Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; individuals should seek personalised advice.

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