ChiFRA

We are fast approaching 31^st March, the deadline by which residents in Spain need to submit their annual Form 720 (Modelo 720) listing their overseas assets, where applicable.  If you have previously submitted a form, you only need to declare assets if they have grown a certain amount or you have sold or closed them. 

Besides confirming what you have to declare this year, this is also a good time to consider whether you are holding your assets in the most tax-efficient vehicles for Spain.  If you have investments that were set up with UK taxation in mind, you may be paying more tax in Spain than you need be.

If you live in Spain, the chances are that your heirs, or perhaps even yourself, will be hit by Spanish succession and gift tax.  Many British nationals also remain in the UK inheritance tax net – being non-UK resident alone is not enough to escape this tax.

While they are both taxes on inheritances and gifts, there are significant differences between how they taxes are applied, and the Spanish tax rules can come as a surprise to some.

We all sleep better when we feel confident that our affairs are in order, and as we get older we think more about the legacy we will leave to future generations; specifically, how and to whom our assets will pass on our death.

Increasingly, estate planning is a major concern for expatriates.  You have worked hard to build up your wealth and want to pass it on to children and grandchildren to help them as they make their way through life.  You want to ensure the money is used wisely, at the time they need it most.  But how can you have control over what happens after you are gone?  You may have many years left in retirement yourself, and so need to continue to receive income or take capital in the meantime.  

So far there have not been many tax changes for 2016, and income taxes are just a little lower than last year.