ChiFRA

The last few years have emphasised how uncertain life can be; how we never know what is around the corner. Brexit and the pandemic have now been followed by the worrying and upsetting events in Ukraine. Life feels more uncertain again.

This perhaps makes it more important for us to take control where we can, as much as we can, particularly when it comes to our family’s long-term future and security. So here we take a look at the key wealth management considerations we should review from time to time.

It has been over a year now since the UK left the European Union. And while British expatriates continue to enjoy the life they were used to in Spain, there have been some changes to understand and get used to, some more inconvenient than others.  And for those wanting to move to Spain from 2021 onwards, it’s a whole new ball game.

The door to Spain is not closed but things are more complex than they were. The key is planning ahead and working with specialists in cross-border planning who understand the issues and implications and have the resources to keep track of the changes and available options.

On a day-to-day level, many of us have run into issues when receiving parcels from the UK, whether it is delays at customs, import taxes or some UK shops no longer shipping to the EU. But there are bigger issues to deal with too.

Now that the European Court of Justice has determined that the Modelo 720 penalty regime is contrary to European law, Spain will have to reduce the fines and apply a statute of limitations. Spanish taxpayers, however, still need to declare their overseas assets each year.

Since 2013, residents of Spain have been obliged to submit an annual declaration reporting the assets they own outside Spain – the infamous Modelo 720 (or Form 720). This is in addition to their annual tax returns. To discourage people from not reporting or underreporting their assets, the Modelo 720 regulation imposes very high penalties for failing to file the declaration, filing it late, or including false or inaccurate data.