ALL >> Business >> View Article
Modelo 720 The Lull Before The Fatca Storm! Are You Covered? Need Financial Planning, Retirement P
Total Articles: 2
Anyone moving to Spain or currently tax resident in the country needs to know that at the end of 2012 the Spanish Government launched a new initiative to ensure that it was no longer possible to hold assets offshore without disclosing their existence to the tax authorities. Whilst there was no immediate taxation liability the disclosure of non-Spanish sited assets may well have implications when it comes to capital gains, wealth and inheritance taxes further down the line.
Modelo 720 requires each tax resident to report on annual basis assets in various categories including investments, deposits and real estate where the combined value in each category exceeds 50,000 Euros. Interestingly the law extends to Companies and Trusts if the tax resident is either a beneficiary or a signatory. Despite the law giving the authorities power to impose massive penalties for non- disclosure it is reckoned that for the first annual declaration required at the end of April 2013 less than 5% of those required to make the declaration did so.
Not only have the tax authorities threatened to target specific nationalities including UK expats moving forward and to significantly increase the number of tax investigators they employ other measures have been taken to ensure that there can be no way of avoiding disclosing assets and paying the proper amount of tax due.
Spain has signed an agreement with UK and other major European countries to share and exchange information on a regular basis. Of course this is only part of a worldwide onslaught on undisclosed assets with the US FATCA regime in full swing and the UK government signing a number of disclosure agreements with the Channel Islands, IOM and various offshore jurisdictions such as BVI and Cayman islands. Alongside this the EU has put tax evasion at the top of its agenda and a revision of the EU Savings Directive to include automatic exchange of information in respect of Companies and Trusts has moved a step closer.
Tax planning and tax mitigation strategies including of course financial planning and retirement planning are a core part of the wealth management services offered by an investment firm such as Fiduciary Wealth. Far too often we meet clients who have buried their head in the sand and refused to believe that the tax authorities will bother about them because they are under the radar or don’t have sufficient assets to warrant an investigation or just simply refuse to believe it will happen to them.
There are perfectly legitimate wealth management solutions that will work and stand the test of time without the need to simply hold all of your assets inside a Spanish bank with all the risk that particular strategy entails. Whilst we cannot do anything about the past we can make sure that moving forward you hold your investments and pensions in the most tax efficient way possible without having to have sleepless nights worrying about a knock on the door or a Cyprus banking style haircut on your savings. Visit http://www.fiduciarywealth.eu/.
Business Articles1. Five Things You Could Be Doing Wrong While Choosing Your Renovations Team
Author: Stephen Kavita
2. Add Value To Your Lancaster Home With The Right Renovations & Remodeling
Author: Cory Frank
3. Get The Most Out Of Family Counseling
Author: Cory Frank
4. The Case For Composite Decking
Author: Blue Star Carpentry
5. Motivation & Support
6. What Is A Leased Line And Its Advantages
Author: Ketan Shah
7. Carpet Cleaning And Flood Damage Repair
8. General Description About Bolts
Author: Harpreet Chhabra
9. Garage Door Service Irvine
10. Carpet Cleaning In Tustin
11. Colorado Garage Door Company
12. Hollywood Hills Carpet Cleaners
13. Custom Home Bars Make The Perfect Spot For Your Home Parties
Author: Larry Lynch
14. Overview On Benefits Of Telco Cost Saving To Benchmark Your Business
Author: Amber Brake
15. Corona Del Mar Carpet Cleaning