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Snowdrop
02-03-2013, 17:39
We are both pensioners and I think we might be in trouble. When we came out here November 2004, we became Spanish residents by taking out individual Residencias, we informed our banks that we were residents for tax purposes, obtained our empadronomientos, and that was that we assumed that we were officially declared for tax. We pay rent for our apartment and have no car so, no assets, however, we do have a collective redemption bond in the Isle of Man that is over €50000, I have been told that this is classed as an asset under Life Assurance, and we need to declare it. We are both novices where tax matters are concerned,so would really appreciate if there is someone on the forum who can explain step by step, what we need to do to put this right. Are we in for a hefty fine? Really worried!!!! Don't know who we have to go to or what to do for the best. Please help!

Fivepence
02-03-2013, 18:36
We are both pensioners and I think we might be in trouble. When we came out here November 2004, we became Spanish residents by taking out individual Residencias, we informed our banks that we were residents for tax purposes, obtained our empadronomientos, and that was that we assumed that we were officially declared for tax. We pay rent for our apartment and have no car so, no assets, however, we do have a collective redemption bond in the Isle of Man that is over €50000, I have been told that this is classed as an asset under Life Assurance, and we need to declare it. We are both novices where tax matters are concerned,so would really appreciate if there is someone on the forum who can explain step by step, what we need to do to put this right. Are we in for a hefty fine? Really worried!!!! Don't know who we have to go to or what to do for the best. Please help!

You could try asking this lady Snowdrop, send her a PM....................@Goldenmaniac (http://www.tenerifeforum.org/tenerife-forum/member.php?222-Goldenmaniac)

She is very knowledgeable.
This is her website http://www.diana-mcglone.com/

If she can't help, perhaps she can guide you to someone who can.

Suzanne
02-03-2013, 19:16
Contact
Marcos speaks perfect English and will sort you out, he doesnt charge the earth either.


Marcos Cabrera S.l.
Asesoría Fiscal | Los Cristianos Arona
Teléfono: 922 79 30 48

mike in chayofa
02-03-2013, 20:09
..........so would really appreciate if there is someone on the forum who can explain step by step, what we need to do to put this right. Are we in for a hefty fine? Really worried!!!! Don't know who we have to go to or what to do for the best. Please help!

The information that has already been given is perfectly correct. A professional gestor will advise you of the 'legal' situation.

I make my tax declarations every year and always have done .... it would be an irresponsible person that would dream of telling you to keep your head down and that for the amounts involved, the tax authorities have bigger fish to fry ;)

Snowdrop
02-03-2013, 21:14
Really appreciate your help, thank you very much Fivepence

patrick2976
10-03-2013, 11:12
Hi Snowdrop.
You probably raise more points than you realise there. There shouldn't be a problem but it really depends on your circumstances. Do you take an income from the bond? Are the gains re-invested? Did you set up the bond whilst you lived in the UK? There should be no fine if you declare before the deadline of April 30th but I would need a little more info to be sure. The declaration form itself is available online, it's reasonably straight forward and doesn't dig too deep into the circumstances of your asset. The main issue is the type of bond itself. Although (if you were resident in the UK) there would be a gross roll up of tax which would be re-invested, now that you are Spanish residents you will pay unnessary tax. You should really have a spanish compliant bond instead. The reason for this is that the tax position is much more favourable, the gains are tax free if left within the bond and you can declare the asset to the Hacienda for the new asset declaration law with greater piece of mind. Also, if the funds within the bond remain Spanish compliant you can take lump sums from the 'pot' and pay a greatly reduced amount of income tax. Finally (depending on your circumstances) it can be a very good tool for Spanish inheritance tax mitigation. Hope that helps. Please feel free to contact me if you need anymore info. Patrick. :-)

Snowdrop
10-03-2013, 12:51
Will definitely get in touch if we need any more help. You mentioned that the Spanish Tax Declaration form for Residents is online, do you have the link for it? Would like to take a look and see what info. they will require at the asesoria. ???

Mia
10-03-2013, 13:03
I would also recommend Marcos Cabrera in Los Cristianos.

I believe you do not become a "Fiscal" resident until you fill in a tax return, even if you do not need to pay any tax it is a good idea to submit a Spanish tax return if you are a resident.

Also if you are not earning enough from pensions etc. to pay tax you should get a refund from any tax that your bank has charged you on interest you have received.

patrick2976
10-03-2013, 13:09
Will definitely get in touch if we need any more help. You mentioned that the Spanish Tax Declaration form for Residents is online, do you have the link for it? Would like to take a look and see what info. they will require at the asesoria. ???

I'm new to this forum so I don't think I can post links but if you put the 3 w's in front of this it should work;

.agenciatributaria.gob.es/AEAT.sede/tramitacion/GI34.shtml