The deadline for the Spanish tax amnesty, which aims to recoup a sizeable amount of unpaid tax, is nearing its deadline of November 30.
Article written by The Overseas Guides Company
The initiative or “Voluntary Disclosure Procedure” forms part of the Spanish government’s efforts to increase tax revenue and impose a stricter crackdown on tax evasion and fraud.
The amnesty, which was introduced by Royal Decree in March of this year, is available to individuals and companies, whether resident or non-resident, who own assets that were acquired using non-declared income. The taxpayer must have acquired these assets before December 31 2010 and must still have owned them on March 31 2012. The amnesty only applies to legal owners of the assets who have not yet had an investigation initiated against them.
The amnesty exclusively covers income tax, non-residents income tax and corporation tax. Wealth tax, inheritance tax and gift tax, transfer tax, municipal tax and VAT are not included.
If you own property in Spain and plan on using the amnesty to declare previously undeclared assets, you need to submit a special return by Nov 30. On the form, you will need to detail all undeclared assets and income and pay a one-off tax liability at the same time. You will not be able to defer payment or pay what you are liable for in instalments.
The tax liability is 10 per cent of the undeclared assets – it does not apply to undeclared income, but to the value of the assets connected to or acquired with the undeclared income.
If you live in Spain or own property there it is vital that you understand exactly what the tax rules are and ensure that you are paying the correct amount. The SpainBuyingGuide.com recommend speaking to a financial advisor, who will be able to advise on tax structuring in Spain. The Overseas Guides Company can put you in touch with one, give the resources team a call on 0207 898 0549 or email them at ogc@overseasguidescompany.com.
For details of property for sale all over Spain, visit the listings on Rightmove Overseas. One way to save money when buying in Spain is to use a currency specialist when transferring your pounds into euros or dollars to complete the purchase of your property. For more information on this, contact Smart Currency Exchange or visit the Currency Zone.
To understand the full step-by-step process to buying a property in Spain, collect The Overseas Guides Company’s ‘Spain Property Buying Guide’
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