Over the past months you have probably seen articles in various newspapers explaining changes that are going to be introduced under new European regulations, which establish the obligation for residents in EU Countries, to declare to the Spanish Tax Authority all assets and bank accounts held outside of Spain under determined circumstances.

Whilst you may be alarmed, as this seems to be the tone in some publications, we should bear in mind that these are purely informative declarations. Their objective being that the different National Tax Authorities will gain some control over the circulation of money within the EU, preventing tax fraud.

The year 2012 will be the first tax year that this information is to be declared. Once the Tax Administrator approves the Form to be used, the information should be submitted to the tax authorities by the end of March 2013.

For British Citizens living in Spain, who have their tax affairs in order, this new regulation should not be a cause for concern as it will not introduce any changes  with respect to their current situation. It is purely informative, and for those who hold assets and/or bank accounts with individual values of more than 50,000€, you are making the Tax Administrator aware of any assets held as a resident in Spain.

On the other hand, for those British Citizens living in Spain and who continue to pay their taxes in the UK, it is time to seriously think about putting their tax affairs in order with the Country they live. More of the EU Countries are starting to take measures to allow information to be exchanged more effectively between the respective Tax Authorities. By paying your taxes according to what the law establishes, it will not only give you peace of mind but also allow you to receive the same tax benefits as Spanish nationals.

Finally, it is also important that when you begin to pay taxes in Spain, that at the same time you stop paying tax in the UK.  UK TAX REFUND is the only company who work with both tax authorities, the Spanish tax office and HMRC in the UK, ensuring that by getting your tax affairs in order in Spain, they are also in order in the UK.  UK TAX REFUND understand the British tax system and work hand in hand with HMRC, helping British Citizens living in Spain  put their tax affairs in order in both countries.

Don’t Panic!

Please do not panic, rest assured that there is a way to get your affairs in order in Spain, and the best way is often the simplest. Give us a call on 965636938 and stop stressing.

Or email us: michelle.hamilton@uk-taxrefund.com