Quarterly Update 2019-01-31

General News

Well, where do we begin? It has certainly been an interesting quarter, with endless developments on Brexit (“the gift that keeps on giving”), the ongoing tariff disagreements between the US and China, and the increasing problems Italy and their economy are experiencing. 

Brexit, without doubt, is the most known and spoken about topic, as we simply cannot get away from the news – even if we wanted to. This is also the most relevant subject to the majority of us living here in Spain, as, depending on the outcome, it could have a direct impact on us, especially if there is a no-deal scenario. This, as we know, is not a certainty and there are many people who still believe that the UK will not leave the EU if there is a strong campaign for a second referendum.

Over the past 3 months we have seen Theresa May suffer a humiliating defeat in the House of Commons, which led Mr Corbyn to table a vote of no confidence. The PM survived the vote of no confidence the following day, a…

Modelo 720 Explained

The Modelo 720 is an informative declaration made to the Spanish authorities advising them of any asset an individual holds outside of Spain, with a value of 50.000€ or more. This declaration has to be made before the 31st March and is in relation to the value of the assets as of the 31st December the previous calendar year. Any asset held within Spain does not need to be declared as it will already be known to authorities.

Modelo 720 has 3 reporting categories, split into bank accounts, investments and immovable property and the limit of 50.000€ applies to each. If the asset in question is in a different currency, the exchange rate will determine whether or not there is a need to declare. For example, if an individual has 30,000 pounds in a UK bank account, this would not need to be declared as with the current exchange rate, this would be equivalent to approximately 33,000€ and therefore short of the 50.000€ requirement.

Many individuals have bank accounts or investments that are held…

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…