Pensions. Tax. - Page 4

sdb137 wrote on Fri Oct 29, 2021 4:36pm:

Every ex pat in Spain has to declare every penny of pensions and earnings every year, and fill in the 720 as a one of.

They also have to declare all interest earnt on savings abroad.

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They must print of and show their p60, and fiscal bank accounts as declared on the 720.

They must also show a print of of savings, and interest earnt.

If all is declared on the 720, there is nothing to worry about.

It was interesting to talk to a couple in the solicitors, who had been here about 5 years, and never heard of a 720 declaration, and had not declared anything on savings or property abroad. 

Tony1948 wrote on Fri Oct 29, 2021 5:37pm:

Assets in this instance means property (houses etc), and that includes funds in one or more UK banks.

PeterC wrote on Fri Oct 29, 2021 6:09pm:

Assets outside Spain must be declared on Form 720, any group of assets in categories such as property, savings, pensions etc worth over €50000. I doubt that the tax man would not categorise any bank holdings as anything other than savings! Once declared they do not need to be notified every yea...

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...r, only if any group grows to over the limit.

“This new law was passed effective Nov 15th 2012 and is part of a package of anti-fraud legislation.
This is how it was described in the initial press release which was in English.

Accounts with financial institutions and all types of assets, properties and rights to properties, securities, rights, insurance and deposited income managed or obtained abroad must be declared.
The Royal Decree exempts from this obligation the need to declare assets worth less than 50,000 euros per asset type. The presentation of the disclosure in successive years will only be obligatory when this limit has been increased by more than 20,000 euros.

The information to be disclosed will include, in the case of accounts in financial institutions, the balance of these accounts on 31 December and the average balance for the last quarter of the year. This information will refer to current and savings accounts, term deposits, credit accounts and any monetary accounts or deposits of any type or currency, even if not remunerated. In the case of real estate, the purchase date and price must be disclosed, as well as the mortgage start and cancellation dates, and in the case of securities, the rights, insurance and income deposited or managed abroad must be disclosed as at 31 December each year.

Failure to comply with these obligations may have repercussions on personal income tax and corporate income tax, if the tax authority discovers hidden assets linked to this type of assets and rights. In this case they will be included in the last open tax year and the taxpayer risks heavy fines or the possibility of being prosecuted of a tax crime.

WHO HAS TO DECLARE AND WHICH ASSETS? 

The law only applies to tax residents of Spain and to assets outside Spain.

There are 3 categories of assets.

1. Accounts held with financial institutions – bank accounts etc
2. All types property and rights over such property
3. Shares and securities
Life insurance policies unless they only pay out on death.
Lifetime or temporary annuities purchased for a monetary consideration. 

If the total value, in each asset category exceeds €50000 then each and every account, share or policy etc. in that asset category must be declared.”

PeterC wrote on Fri Oct 29, 2021 6:09pm:

Assets outside Spain must be declared on Form 720, any group of assets in categories such as property, savings, pensions etc worth over €50000. I doubt that the tax man would not categorise any bank holdings as anything other than savings! Once declared they do not need to be notified every yea...

Read more...

...r, only if any group grows to over the limit.

“This new law was passed effective Nov 15th 2012 and is part of a package of anti-fraud legislation.
This is how it was described in the initial press release which was in English.

Accounts with financial institutions and all types of assets, properties and rights to properties, securities, rights, insurance and deposited income managed or obtained abroad must be declared.
The Royal Decree exempts from this obligation the need to declare assets worth less than 50,000 euros per asset type. The presentation of the disclosure in successive years will only be obligatory when this limit has been increased by more than 20,000 euros.

The information to be disclosed will include, in the case of accounts in financial institutions, the balance of these accounts on 31 December and the average balance for the last quarter of the year. This information will refer to current and savings accounts, term deposits, credit accounts and any monetary accounts or deposits of any type or currency, even if not remunerated. In the case of real estate, the purchase date and price must be disclosed, as well as the mortgage start and cancellation dates, and in the case of securities, the rights, insurance and income deposited or managed abroad must be disclosed as at 31 December each year.

Failure to comply with these obligations may have repercussions on personal income tax and corporate income tax, if the tax authority discovers hidden assets linked to this type of assets and rights. In this case they will be included in the last open tax year and the taxpayer risks heavy fines or the possibility of being prosecuted of a tax crime.

WHO HAS TO DECLARE AND WHICH ASSETS? 

The law only applies to tax residents of Spain and to assets outside Spain.

There are 3 categories of assets.

1. Accounts held with financial institutions – bank accounts etc
2. All types property and rights over such property
3. Shares and securities
Life insurance policies unless they only pay out on death.
Lifetime or temporary annuities purchased for a monetary consideration. 

If the total value, in each asset category exceeds €50000 then each and every account, share or policy etc. in that asset category must be declared.”

crissywissy wrote on Fri Oct 29, 2021 5:26pm:

Modelo 720 only for overseas assets more than 50,000

sdb137 wrote on Fri Oct 29, 2021 9:23pm:

Thats not what we have been told by the accountant, you have to declare everything on the 720, every account you have, even if it only has a few pounds in it.

Everything must be on the 720, nothing left out.

crissywissy wrote on Fri Oct 29, 2021 9:37pm:

Clearly states OUTSIDE Spain

Spanish tax resident individuals are obliged to report (720 Form) the following assets and rights (including any investments) located outside of Spain to the Tax Authorities:

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Accounts in which the individual is the titleholder, or in which he is representative, authorized person or beneficiary, or in which he has disposal powers.Securities, rights, insurance and life or temporary annuities.Real estate or rights on real estate.