Welcome to our third quarterly newsletter


Welcome to our third quarterly newsletter. A lot has happened in the market this quarter so we will try and cover the main topics.As always, if there is anything we have missed and you would like us to cover in our next update, please do not hesitate in letting us know.

Global Markets

During the third quarter of 2018, we have seen some of the highest volatility in markets since the financial crash in 2008. October has a tradition of being a fairly unstable month in terms of investments and markets, and it well and truly lived up to its reputation.

In the last 3 months we have seen falls in all major worldwide markets including the FTSE 100 (UK) -7.87%, the EuroStoxx 50 (Europe) -9.58%, the S&P 500 (US) -4.34% and the Hang Seng China Enterprises (China) -8.76%.

After reaching all time highs in May, the FTSE 100 (top 100 UK companies) was one of the first to suffer this quarter as Brexit volatility continued following several resignations from Theresa May’s Conservative …
How do I register as a resident in Spain? As an EU citizen you must register as a resident if you plan on living in Spain for more than 3 months.
If you are here for a total of 183 days in a calendar year then you are classed as being a tax resident of Spain and should be registered as resident.

You should register in person at the Oficina de Extranjeros (immigration office) in the province where you live or at the designated police station.
You will be required to provide documents to support your application which currently is:

NIE – your foreigner’s tax numberThe form S1 if you are a pensioner, SIPP card or proof of private health insuranceConfirmation of payment for the residencia in the bankThe completed residency application formPassportProof of income
You must be able to demonstrate that your life in Spain is financially sustainable. You will be expected to show bank statements that cover the previous three months and that you have a monthly income of above €800 per person…

Requirement to Correct‘ or RTC for short deadline is 30th September...

Requirement to Correct‘ or RTC for short deadline is 30th September....Do you have any offshore income or Assets?
Many people we meet feel it's too late or are worried about the consequences. There is nothing to worry about. Please get in touch if this applies to you. We can help...
HMRC representatives made presentations across the Costa Blanca on the 4th September to the general public, outlining an individual’s requirements of their looming deadline which is the 30th September 2018.The legislation which was introduced in April 2017, is called the ´Requirement to Correct‘ or RTC for short. In simple terms it is intended to allow an individual to correct any information previously given to HMRC (or indeed information previously not given) regarding any income or assets held outside of UK.
Provided you notify HMRC of any such errors before the deadline, then the usual level of fines will apply. However failure to notify them could result in future fines ranging from 100% to 200% of …

HMRC Tax Briefings for Expats

HMRC representatives from the UK visited Moraira yesterday to talk about tax issues. HMRC has introduced new legislation that requires individuals to make sure their foreign income and assets are in order before a 30 September 2018 deadline and the arrival of tougher penalties.

 The main points to come from the meeting were as follows;

There are two scenarios where a penalty could be imposed; either because of deliberate non- compliance (people trying to get away without paying taxes by not informing HMRC of things on purpose) or because of an error resulting in non-compliance (incorrect information given to HMRC).

Penalties are currently 30-40% on top of tax amount due up to end of September. But from 1st October this is increased to 100-200%.

You can however avoid this penalty if you have a “reasonable excuse” , for example you went to an accountant and he calculated your tax liability incorrectly and as a result the wrong amount of tax was paid due to their error.


Quarterly Update

Welcome to our second quarterly update. Having launched this quarterly update for the first time back in late April, we are pleased to say that we have had lots of positive feedback. As always, if there is any topic you would like us to cover in our next update, please do not hesitate in letting us know. 

Over the past 3 months we have seen many events worldwide that will make their way into the history books, both political and non-political. On the political side, we have seen important meetings such as the North Korea-US Summit 2018 in which Donald Trump and Kim Jong-Un met for the first time in person, in Singapore. Mr Trump then did a European tour during which he first visited her majesty the Queen at Windsor Castle, before flying to Helsinki to meet with Vladimir Putin. On a lighter note, we have also had been treated to a very well organised (and violence free) World Cup in Russia, much to our surprise. From an English perspective, it was great to see everyone come together a…

Budget for 2018

The Goverment's budget for 2018 has finally been approved. Below is a summary of changes we thought might interest you.

Starting with a positive one, going to the cinema is going to be cheaper, as the IVA/ VAT on tickets will decrease from 21 to 10. Effective immediatly.

Another improvement Paternity leave from 4-5 weeks and for 'fucionarios' the option to take leave once the mothers leave has ended. Effective immediatly.

Pensions will increase with 1.6% for a medium pension to 3% for a minimum pension, 1,35% for Autonomos not in receipt of minimum pension. The increased pension payments will be released as of August , but the measure will be implemented retro-actively as of January 1st this year, so during July all pensioners will receive an extra payment with the increase over the months January-July.

IRPF Income Tax Changes- The threshold of 12,000 euros will go up to 14,000 euros. Higher allowances for those with income from work between 14,000-18,000. Extra allowances f…

Brexit- The Facts

There is a lot of speculation and fear mongering about Brexit. What do we know?
Nothing. That is the simple fact, nobody can tell us what is going to happen.

So with so many seminars and meetings organised with various companies and figureheads to try and clarify the position the fact of the matter is nobody knows.

So why not focus on what we do know, the facts and nothing else. There are undoubtedly many questions and we will all have our own that pertain to us individually or as a family and we will all have an eye on the overall effect.

The Facts
For most expatriates living in Spain, working or not one fact is that if you spend more than 183 days a year in Spain you should be Fiscally resident in Spain. It is not a choice it is obligatory.If your children go to school in Spain, private or public your centre of influence is likely to be Spain and as a result you are obliged to become Fiscally Resident for tax purposes in Spain.In 2018, legislation has been introduced which means that …