Wealth Tax to be Scrapped in Andalucia

Expat financial planning clients should be aware that HM Revenue & Customs have increased powers to ensure full disclosure of financial information in order to assess tax liability.

This follows a ruling by the Court of Appeal in London* in which the Court upheld the right of HMRC to demand compliance from a UK-connected individual living in Dubai.

The case clearly indicates that UK-interested parties with cross-border financial interests must consider their UK tax liabilities as part of their wider expat financial plans.

If you are serious about receiving the best financial advice in Spain, chances are any adviser you choose will recommend that, in the absence of a committed property investment strategy, you do not invest too heavily in Spanish real estate.

However, for the enthusiastic expat who has recently fallen in love with the country and the idea of owning a small piece, or perhaps a larger chunk, of its picturesque and romantic charms, it can be hard to resist.

But the truth is that there is often a reason why a property might be going at a bargain basement rate. For example, investment in whole abandoned villages in isolated locations such as Aragón and Galicia has recently become something of a phenomenon, when the reality is that the outlay, which can be under €100,000, will buy you little more than a dilapidated shell without water, gas, electricity, telephone or internet services. So, making your bargain purchase habitable in these circumstances is likely to cost at least ten times as much the initial purchase price.