Tuesday, 19th November 2019
FINANCE & INVESTMENT Article
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This Month's Magazine
Overseas Assets Filing

Overseas Assets Filing

You may have to gather some data before you can complete the process of filing assets which was extended to the end of April, do hurry. Some Clarity as provided by Richard Alexander Dip. PFS.

You may have to gather some data before you can complete the process of filing assets which was extended to the end of April, do hurry.

There are three asset classes of overseas investment to be considered:- cash deposits, property and shares/investments. You need to file the details for each class  which exceeds 50,000 Euros on 31st December 2012.

For cash, it’s the balance on 31st December or the average balance over the preceding 3 months if higher.

For property, it’s the purchase price that needs to be declared but if the property was inherited, it’s the value when the inheritance was received (Probate value) which should apply.

Shares and investments is the widest asset class, this includes stocks and shares, Bonds and Gilts, pension funds, insurance polices and direct investments as well UK Premium Bonds etc.

 


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Assets in joint names
Each person should include the full value in their declaration but note the percentage that they own. For example, joint bank accounts with a total value of 60,000 Euros need to be declared fully by each joint holder noting that their percentage holding is 50% – you cannot assume that it is 30,000 each and therefore below the threshold!

With regards to pension policies, only pensions is in payment need be declared. If you are drawing income from the fund, then it’s the fund value, which needs declaring as at 31st December 2012. If it’s an annuity, the Spanish authorities have issued tables to calculate the equivalent capital value from the level of income receivable.

There is a misconception that overseas investments need to be moved to Spain, this is not the case and should someone try to persuade you otherwise, it’s time to find another adviser.

By the way this is not a vendetta against Expats living in Spain – this applies to all Spanish tax residents and if you spend more than 183 days a year in Spain, that means you too!

Once you have identified what needs to be declared and the relevant value, the next question is how to do it.

There are two options.
If you prefer to do it yourself, you can do so utilizing the online filing process. However, beware, this is not for the novice when it comes to IT as you need to apply for a Certificate for your computer to be able to undertake the task and typical Spanish bureaucracy is involved.

The alternative is to ask your tax adviser or accountant to do it for you,then you have the peace of mind knowing everything is completed on time.

This process will not in itself lead to any additional tax to pay – if you have been declaring your income in Spain anyway then you are already up to date but you need to make sure you have included everything.

If you are still in any doubt or have questions which have not been answered, please email me on info@ra-fp.com or through my website (see link)



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