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mandymoo
28-06-2014, 20:50
Hi, i have read on the internet that you have to declare your UK savings if more than €50,000 if you live in Tenerife, yet an accountant told me i did not have to declare my savings. Surely it has nothing to do with Tenerife what savings you have. Has anyone been in this situation, if so, how did they get on.
What do i believe.

doreen
28-06-2014, 22:49
I am afraid Yes, mandymoo, if you come to live in Spain and become ¨tax resident¨ here, then you are obliged to fill out a Modulo 720, which declares all your assets held outside of Spain, once their value exceeds 50,000 euro. It is possible that UK based accountants are not up to speed on this.

This measure was brought in last year as an anti-fraud measure. After your first year of submitting it, you only need to resubmit the form if your assets have increased in value by 20,000 euro.

mandymoo
28-06-2014, 23:24
Thanks Doreen, but I am retired and will not be paying any tax.

timmylish
29-06-2014, 03:28
Thanks Doreen, but I am retired and will not be paying any tax.



All due respect that is a very definitive statement to be making if resident on Tenerife, retired or otherwise.

garlicbread
29-06-2014, 10:03
Sounds like the OP has been seeking advice from "know it all" sitting next to him in some bar(s)

doreen
29-06-2014, 12:34
Thanks Doreen, but I am retired and will not be paying any tax.

Not quite an accurate statement ... there are many people who are "tax resident" who do not pay taxes at certain points in their life - the unemployed, the retired and so on.

The general rule is that after 183 days residence here in Spain (bar a few specific exceptions for people with complicated finances) then you will be deemed to be tax resident and should be making your tax return in Spain rather than the UK or elsewhere, even if you do not actually owe any tax for the year. I have no doubt that there are still quite a few ex pats who try to stay under the radar as regards submitting returns in Tenerife.

Talking to my accountant recently, he said that only a very few Modulo 720's were investigated. He also said that from January 2015, vast amounts of information will be shared throughout Europe on individuals finances.

mandymoo
29-06-2014, 13:45
Excuse me, garlic bread, I have not been sitting in any bar, and I am not in Tenerife, i am in England. I move to Tenerife in July and I am trying to get as much information as possible, I hear that many conflicting stories, and I do have a name, I am not known as OP. Have a nice day.

seanocelt
29-06-2014, 14:22
O.P. = Original poster. Stick with us, you will get accurate info on here, not hearsay.

mandymoo
29-06-2014, 15:07
Cheers for that hun. I thought he was calling me old pensioner as that what it reads like. Yes I have put threads on here because I want info, and thought it a good place to start because some of you know the score and have done it all.

therealpopeye
03-07-2014, 03:22
Hi Mandy

I spoke to an international accountant based in Switzerland on this matter last year.
What I have been told is that you will be tax resident in Spain if you spend 183 days or more per calendar year there, or earn any income in Spain by way of employment.

However, if you only have income from the UK and still own a property in the UK which is not rented out (this is crucial), you can elect to continue to pay tax in the UK. If you have Spanish assets (resident's bank account and/or Spanish property) and spend more than 183 days per calendar year (the Spanish tax year) then you will be Fiscally Resident and liable to pay tax on any income (including UK state pension) if over the Spanish personal allowance. I don't have the up to date figures but it's about half the UK personal allowance and will also depend on your age.

Speak to an international taxation accountant.

junglejim
03-07-2014, 12:33
I've visited most "Loyal Establishments " in my area and never declared my tax yet (just to stay on topic!)- I'm always "on the level "with them , even bought one a drink a couple of weeks ago - he didn't remember us arguing about the Old Club and EBT's and tax a couple of years ago !

timmylish
04-07-2014, 01:41
I've visited most "Loyal Establishments " in my area and never declared my tax yet (just to stay on topic!)- I'm always "on the level "with them , even bought one a drink a couple of weeks ago - he didn't remember us arguing about the Old Club and EBT's and tax a couple of years ago !

JJ. It never fails to amaze me at the apparent lack of memory which some of these 'gentlemen' possess. It is your duty to rectify this at every opportunity!