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Don't bury your head in the sand over tax Issue 796
22nd March - 28th March 2013
Tel: 902 232 102 info@canarianweekly.com Publisher, proprietor and Editor: MES ONCE SL Depósito Legal TF 1209/97 CIF: B- 38753802 Poligono Industrial Las Chafiras, No 65, Bloque 2-A, Urb Las Chafiras, 38620, San Miguel de Abona, Tenerife
The best of the Tenerife Comedy Club Read our interview with Dr. George Ryegold on page 16
See Inside... Tenerife Sunshine See page 7
Declare your assets, or risk a hefty penalty IT’S official! If you are a resident in Spain, or in our case Tenerife, you must file an annual, detailed declaration of assets held overseas.
And that applies to everyone, whether of Spanish descent or a foreign national, such as British, for example. The British Embassy has updated its guidance on taxation for Brits who are resident in Spain. It follows the recent Royal Decree that reinforces an existing obligation on all residents in Spain - to declare their overseas assets. But be warned: the Decree allows for tough penalties for non-com-
pliance. The guideline changes bring to the fore just how serious they are for those living in Tenerife. Until now, these changes had been talked about for many months, but many Expats appear to have just buried their heads in the volcanic sand. The updated guidance states: “Britain has a double-taxation agreement with Spain to ensure people do not pay tax on the same income in both countries. “In accordance with Spanish and international law, all residents in Spain (nationals and non-nationals alike) are required to declare assets, or groups of assets, held outside Spain. “Assets may include bank accounts, securities, rights, insurance,
Paddys raise the roof again
See page 18
annuities, property, etc, and the declaration is a separate exercise to the annual tax return. “To reinforce this obligation, and as part of the Spanish Government’s recent anti-fraud law, the Government on 15th November 2012 passed a Royal Decree that requires all residents in Spain to file an annual informative declaration of assets held overseas by 31st March each year. Exceptionally for 2012 declarations, the deadline is 30th April 2013. “Severe penalties for incorrect, incomplete or late reporting can be incurred, and the legislation also means that criminal charges can be brought in the case of non-compliance. “The requirement and potential penalties are in line with standard in-
ternational tax practice. “To clarify, you must declare your assets to the Hacienda (the tax office) by the end of April 2013 or risk a fine. Individual assets must be over 50,000 euros in value, at today’s exchange rate (approximately £44,000).” Put simply, an asset is something which has value and that can be converted into cash. So for most people, it means property and bank accounts because cash itself is an asset, plus investments, annuities and securities such as stocks and bonds. The key aspect of the changing legislation is the word “resident”. You are deemed to be a resident if you spend more than Continued on page 3.
TongueThaid with delight!
See page 43