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Selected News Article - From Rural Andalaucia
A new Double Taxation Convention between UK and Spain
23 July 2014

 Taxation Treaty
The warnings come as Spain announces a discount in income tax for domestic residents. Indeed, income tax will fall by an average of 12.5 per cent in the next two years, Deputy Prime Minister Soraya Sáenz de Santamaría confirmed last week, while also resisting pressure from the IMF and European Commission to raise VAT to compensate for the lower income tax.

It follows a recent order from Spanish officials for British people living in the country to declare all assets held outside of Spain worth more than €50,000 to help tackle tax evasion. Failure to do so would result in fines, the authorities warn. The Foreign Office estimates that 800,000 Brits currently live for at least part of the year in Spain.

The ever-changing financial landscape means that expats should always take care to keep abreast of the latest legal requirements. Keeping on top of your tax affairs as a foreign property-owner or expat is best done through employing a specialist tax firm.

Typically, preparation and foresight are key to arranging your affairs in the most tax efficient way - which means consulting a tax expert before you leave the UK or purchase a property.

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