# Wealth tax



## dmret (Mar 12, 2013)

We are seriously contemplating moving to Spain and renting long term. We are both retired and have good pensions. We will not be seeking any employment.Our home in the UK will be sold and the capital ( over 50,000) will remain in the UK.How will the wealth tax affect us?


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## Guest (Mar 12, 2013)

There is no wealth tax unless your assets exceed 1million euros. However, you will pay your worldwide taxes in Spain or the UK depending on your circumstances.


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## Stravinsky (Aug 12, 2007)

dmret said:


> We are seriously contemplating moving to Spain and renting long term. We are both retired and have good pensions. We will not be seeking any employment.Our home in the UK will be sold and the capital ( over 50,000) will remain in the UK.*How will the wealth tax affect us*?


As said, not at all.
You will have to declare the asset to the Spanish tax man when you become a tax resident here if the asset / cash stays above €50k.


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## mrypg9 (Apr 26, 2008)

dmret said:


> We are seriously contemplating moving to Spain and renting long term. We are both retired and have good pensions. We will not be seeking any employment.Our home in the UK will be sold and the capital ( over 50,000) will remain in the UK.How will the wealth tax affect us?


Assets over 50k euros held overseas by British immigrants resident in Spain must be reported to the relevant authorities - the due date for current residents is April 30th but it will surely be a future and permanent requirement.

If your pensions are local or national government e.g. Teachers Pension they will be subject to a Dual Taxation Order and not be taxed in Spain.

Sadly, £50k isn't considered 'wealth' these days, which tells you a lot about how we live....


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## xabiaxica (Jun 23, 2009)

mrypg9 said:


> Assets over 50k euros held overseas by British immigrants resident in Spain must be reported to the relevant authorities - the due date for current residents is April 30th but it will surely be a future and permanent requirement.
> 
> If your pensions are local or national government e.g. Teachers Pension they will be subject to a Dual Taxation Order and not be taxed in Spain.
> 
> Sadly, £50k isn't considered 'wealth' these days, which tells you a lot about how we live....


just one point.......

aren't the new reporting rules for ALL residents of Spain including Spanish citizens...... not just for British immigrants..............?


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## mrypg9 (Apr 26, 2008)

xabiachica said:


> just one point.......
> 
> aren't the new reporting rules for ALL residents of Spain including Spanish citizens...... not just for British immigrants..............?


Yes, and thankyou for pointing that out. I've posted elsewhere that this applies to all residents regardless of nationality as some of the people at the Seminar seemed to think it was a dastardly plot against British immigrants and that misapprehension must be put right.


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## dmret (Mar 12, 2013)

mrypg9 said:


> Assets over 50k euros held overseas by British immigrants resident in Spain must be reported to the relevant authorities - the due date for current residents is April 30th but it will surely be a future and permanent requirement.
> 
> If your pensions are local or national government e.g. Teachers Pension they will be subject to a Dual Taxation Order and not be taxed in Spain.
> 
> Sadly, £50k isn't considered 'wealth' these days, which tells you a lot about how we live....


Thanks for that.Forgive my ignorance,but,how do they know where my money is?I've done a lot of reseach re. moving to Spain and have been in numerous communications via e-mail (50+) with ex-pats and I've had virtually no comments re this tax. Those that have mentioned it feel that it does not affect them. These same people are more than happy to contribute to the economy and are not opting out of their liabilities, nor would I. Any further info. would be appreciated.
Many thanks.


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## xabiaxica (Jun 23, 2009)

dmret said:


> Thanks for that.Forgive my ignorance,but,how do they know where my money is?I've done a lot of reseach re. moving to Spain and have been in numerous communications via e-mail (50+) with ex-pats and I've had virtually no comments re this tax. Those that have mentioned it feel that it does not affect them. These same people are more than happy to contribute to the economy and are not opting out of their liabilities, nor would I. Any further info. would be appreciated.
> Many thanks.


it's new legislation which has only just (this month?) come into effect - & it's about reporting assets - not paying tax (atm, anyway)


everyone resident in Spain has to make a tax declaration anyway regardless of income/assets/lack thereof - it's just that now you have to tell them _exactly where _any assets you have are


you have to tell them - of course you might choose not to - but if/when they find out - there are huge fines.....

here's a current discussion http://www.expatforum.com/expats/sp...on-overseas-assets-spanish-tax-authority.html


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## xabiaxica (Jun 23, 2009)

mrypg9 said:


> Yes, and thankyou for pointing that out. I've posted elsewhere that this applies to all residents regardless of nationality as some of the people at the Seminar seemed to think it was a dastardly plot against British immigrants and that misapprehension must be put right.


yes, we've had the same comments on a local FB group, & of course you hear it in the bars too


for some reason when I say that Spanish citizens are also subject to these rules I'm met with disbelief!!


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## 90199 (Mar 21, 2010)

You will need health cover. If one or both are O.A.P.'s then you can apply to the pension office in Newcastle for the appropriate forms to transfer your U.K. N.H.S. cover to the Spanish N.H.S. If not you will have to arrange private health care.

I am an O.A.P. Boss Lady is not, but she is covered too because she is classed as my dependent, we pay 10% of prescription charges.


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## dmret (Mar 12, 2013)

Hepa said:


> You will need health cover. If one or both are O.A.P.'s then you can apply to the pension office in Newcastle for the appropriate forms to transfer your U.K. N.H.S. cover to the Spanish N.H.S. If not you will have to arrange private health care.
> 
> I am an O.A.P. Boss Lady is not, but she is covered too because she is classed as my dependent, we pay 10% of prescription charges.


Thanks, I have spoken to Newcastle, but I'm still confused re. the W.tax. The replies for my enquiry seem to be confusing but this could well be me.


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## snikpoh (Nov 19, 2007)

dmret said:


> Thanks, I have spoken to Newcastle, but I'm still confused re. the W.tax. The replies for my enquiry seem to be confusing but this could well be me.


Wealth tax is simple.


Calculate the value of all world-wide assets.

Take off any allowances (resident property owners can deduct up to 300k euros if this is their main residence for example).

Pay 0% on the first 700k euros per individual.

Pay wealth tax on the rest - rates are as per hacienda web site etc.


... or at least, that's how I see it.


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## Guest (Mar 13, 2013)

dmret said:


> Thanks, I have spoken to Newcastle, but I'm still confused re. the W.tax. The replies for my enquiry seem to be confusing but this could well be me.


When I came to Spain 8 years ago, everybody, citizens and residents had to pay wealth tax. It was a separate tax to income tax. If you were a resident, you were given certain allowances, but the tax was for your world wide wealth.if you were non resident it was payable for your wealth in Spain, but you had no allowances. That tax was abolished about 5 years ago, however it was reintroduced, but it was for people with wealth in excess of 1 million euros.

Now, what most are talking about on here is to do with income tax. The 50,000 euro threshold is to do with your normal income tax returns that we all have to deal with once we became residents. Don't confuse that with the wealth tax.


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## Guest (Mar 13, 2013)

dmret said:


> We are seriously contemplating moving to Spain and renting long term. We are both retired and have good pensions. We will not be seeking any employment.Our home in the UK will be sold and the capital ( over 50,000) will remain in the UK.How will the wealth tax affect us?


If you come to Spain for a holiday, look for a gestoria. They are the people that sort out our taxes. Go and see one and ask about tax related issues. They will tell you and I doubt they will charge you for that advice.


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## dmret (Mar 12, 2013)

Tejeda said:


> When I came to Spain 8 years ago, everybody, citizens and residents had to pay wealth tax. It was a separate tax to income tax. If you were a resident, you were given certain allowances, but the tax was for your world wide wealth.if you were non resident it was payable for your wealth in Spain, but you had no allowances. That tax was abolished about 5 years ago, however it was reintroduced, but it was for people with wealth in excess of 1 million euros.
> 
> Now, what most are talking about on here is to do with income tax. The 50,000 euro threshold is to do with your normal income tax returns that we all have to deal with once we became residents. Don't confuse that with the wealth tax.


Thanks, that makes sense.


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## Overandout (Nov 10, 2012)

Tejeda said:


> The 50,000 euro threshold is to do with your normal income tax returns that we all have to deal with once we became residents. Don't confuse that with the wealth tax.


That's not entirely true.

Income taxes have always been dealt with in the yearly declaration, interests and other gains made on capital (wherever it is invested) forms and always has formed part of this income.

The new law passed this year is an antifraud law, but not income tax fraud.

The intention is to avoid capital gains and inheritance tax fraud and money laundering. 
The idea is that the Spanish tax authorities will be able to trace the origins of all foreign held investments to ensure that the relevant taxes were paid when the investment amount was first generated. This is why the statutory limitation on these tax liabilities is effectively anulled with this new law.

Of course, the problem with this is that people will only declare money that has been legitimately generated and on which capital gains / inheritance has been paid. People who have fraudulently hidden money abroad or have earned money from illegal activities are not likely to be caught out by this new reporting requirment!


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## Guest (Mar 13, 2013)

Overandout said:


> That's not entirely true.
> 
> Income taxes have always been dealt with in the yearly declaration, interests and other gains made on capital (wherever it is invested) forms and always has formed part of this income.
> 
> ...


Yes, I know that. What the asker wanted to know was about wealth tax. What I mentioned is true. That is what the wealth tax is all about. What you have written is about a new law to do with a persons world wide wealth and anti fraud measures.

They were given conflicting advice about the wealth tax. I was just trying to clarify that point.


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## mrypg9 (Apr 26, 2008)

Hacienda can find out by checking any bank account you have in Spain,if they wish to. Just as HMRC can check your place of residency by looking at bank account and credit card activity.


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## snikpoh (Nov 19, 2007)

Tejeda said:


> Yes, I know that. What the asker wanted to know was about wealth tax. What I mentioned is true. That is what the wealth tax is all about. What you have written is about a new law to do with a persons world wide wealth and anti fraud measures.
> 
> They were given conflicting advice about the wealth tax. I was just trying to clarify that point.


Yes, but what 'overandout' was doing was to correct some of the errors in your post.

Another error that he didn't mention was to do with wealth tax. It was NOT abolished as this would take a vote in parliament - what happened was that it was reduced to 0% (effectively the same thing). It was then re-instated with a bottom level of 700k euros (not 1 million).


The 50k limit is nothing to do with income tax it is merely a reporting level as explained by 'xabiachica'.


I think we have to be very careful with the facts as this is how errors and misconceptions are propagated!


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## xabiaxica (Jun 23, 2009)

snikpoh said:


> Yes, but what 'overandout' was doing was to correct some of the errors in your post.
> 
> Another error that he didn't mention was to do with wealth tax. It was NOT abolished as this would take a vote in parliament - what happened was that it was reduced to 0% (effectively the same thing). It was then re-instated with a bottom level of 700k euros (not 1 million).
> 
> ...


I'm closing this thread now - the OP's question has been correctly answered - unless he has over 700,000 € he doesn't need to worry about wealth tax, under the current rules


any further discussions of the new 'reporting rules' can continue on the thread I linked to previously

:closed_2:


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