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Modelo 720 (Overseas Asset Declaration) It’s that time of year again

Some of you are saying they will never find out if I don’t declare, again you are very, very wrong. From 31st May 2017, all EU countries plus the UK and its Crown Dependencies and Overseas Territories, have automatically shared all financial information on all financial assets held in their countries by tax residents of another country with the country they are known as being resident in. Please note, if your bank, building society , investment company, pension company etc etc, has a Spanish address for you on their file then whether you like it or not they are obliged by law to report any assets you hold to the HMRC and in turn HMRC will report this to the Spanish tax authorities.

They will report the value of all bank accounts, insurance policies, shareholdings, investments, Trusts etc. (no matter what the balance) as at 31st December each year. Plus they will notify them of what withdrawals have been made during that year and also if an account has been closed during that year.

From May 2018 over 130 countries worldwide will automatically be sharing all financial information on an annual basis. The goal is to allow tax authorities to obtain a clearer understanding of financial assets held abroad by their residents, for tax purposes, and is primarily aimed at preventing tax evasion.

There are ways to ease this reporting burden and to ensure you stay on the right side of the taxman, whilst minimising your tax liabilities, one such way is to use a tax compliant investment bond – for more information contact us today.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

Changes to the Dutch 30% reimbursement ruling confirmed

Thirty Percent SignRecent news about the 30% tax ruling in the Netherlands could have substantial implications for British expats and their financial planning and wealth management strategies.

The 30% tax ruling for expats in the Netherlands enables employers to offer working expats 30% of their salary tax-free as long as they meet certain requirements. The intended aim is to encourage highly skilled workers from around the globe to bring their expertise to the Netherlands. After all, relocating to the Netherlands is not cheap, and the tax advantage is there to help offset all the expense that comes with relocating. There are approximately 60,000 expats who currently claim the tax break.

As we reported last year, the tax break came under fire in a report published by the Dutch research bureau Dialogic for being far too generous and, therefore, costing the Dutch government too much money for it to be sustainable. When published in June 2017, the report suggested several reforms to the system, including shortening the number of years that expats could claim the tax-relief from eight years to five. This was because research carried out by Dialogic found that the vast majority of expats making use of the benefit (80%) claimed it for fewer than five years; less than 10% actually claimed the benefit for the full eight years.

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