Spence Clarke & Co. Chartered Accountants - Tax Consultants - Company Law

The New Obligation of Gibraltar Financial Institutions to Provide Automatic Exchange of Tax Information to The Spanish Tax Office

Miguel Ángel Blanca Prieto 17 July 2017

As part of the recent agreements of exchange of tax information subscribed by Gibraltar for cooperation in tax matters, the Gibraltar financial institutions will be reporting to the Spanish tax office the relevant tax information of all their account holders, including income on earnings, tax withheld and tax residency status. The first reporting will take place before the end of 2017 related to the tax year 2016. The world is getting smaller...

The new international disclosure rules

Alistair Spence Clarke 07 December 2015

More than 90 countries have now signed up to the automatic information system, including most tax havens and the other bad boys like Switzerland, Austria, Luxembourg and Cyprus (to name but a few!). There is now no place left to hide except places where you would have to be very brave to leave your money.

Taxing a rent free commercial property

Miguel Ángel Blanca Prieto 27 November 2015

Picture the scene: with youth unemployment in Spain currently hovering around the 50 per cent mark for under 25s (source Eurostat), you decide to give your son a helping hand by letting him set up business in an empty shop you happen to own.

Paying Company directors what they are worth

Alistair Spence Clarke 26 November 2015

The dubious sight of well-paid businesspeople walking away from soon to be bankrupt companies—but not before pocketing millions of Euros (in some cases hundreds of millions of Euros)—rightly raised a stink, particularly with those less fortunate employees who lost their jobs and shareholders who lost their money.

Spain's new exit tax system and how it affects those leaving the country

Alistair Spence Clarke 21 May 2015

Spain is one of a number of countries that charge tax on unrealised capital gains when their tax residents leave the country, and it has had a new law in place since January 1, 2015.

We have set out a series of Q & As to answer your basic queries about how this law might affect you


Claudia Vargas Puccio 10 February 2014

FAQs - M720 annual declaration of foreign assets. Beware, some of the answers to the questions are truly mad.

I filed a M720 last year. Do I have to file again this year?

Miguel Ángel Blanca Prieto 30 January 2014

There is no automatic obligation to file an M720 each year, so if you filed last year for assets owned on 31 December 2012 you may not need to follow this painful process this year. However, if there have been changes in foreign assets you may have to file again.

Spanish Tax Treaties Changes - a taxing trend for foreigners

Claudia Vargas Puccio 30 October 2013

Spain is very active in signing new tax treaties and updating some old treaties, unfortunately not necessarily for the benefit of the individuals investing in Spain.

When will they learn?

Alistair Spence Clarke 07 June 2013

The latest fashion for the wealthy in Spain is to find another country to pay income tax.

Yet more anti tax fraud measures for Spain - the M720

Miguel Ángel Blanca Prieto 31 January 2013

Here are details of the Stick that followed the tax amnesty Carrot. If there was ever a piece of tax law that needed thought, this is it!

A last chance to declare - tax amnesty and an end to tax fraud in Spain?

Alistair Spence Clarke 09 July 2012

Spanish taxpayers have been given their last chance to clean up their tax affairs.

New measures, just introduced by Rajoy's Government, provide taxpayers with an amnesty for tax fraud. They can now declare previously hidden income and assets by paying a flat 10% one off tax charge. The deadline for the amnesty is 30 November 2012.

This is the carrot.

The stick is a change in the tax rules that will eliminate the current four year tax prescription rule.

New tax incentives for property purchase in Spain

Alistair Spence Clarke 09 July 2012

A few weeks ago the Spanish Government introduced another important tax incentive for property purchasers in a bid to kick start the moribund property market and help the banks get rid of their stock of repossessed properties. It is worth comparing Spain's property tax incentives to the massive French tax increases on foreign property owners. If there was ever a time to buy in Spain, this is it.

Will Rajoy Have What it Takes After the Spanish Elections on Sunday?

Alistair Spence Clarke 18 November 2011

Election day on Sunday 20th November should produce a dramatic change in Government for Spain. But what will this mean?

To be a resident, or not to be, that is the question.

Alistair Spence Clarke 14 November 2011

What makes a resident of Spain a tax resident of Spain? It is an important question and misinformation arises everywhere, not least in the press, over a beer in the golf club, just about anywhere, in fact.

The Tax Man Cometh...

Alistair Spence Clarke 30 October 2011

Over the last few year or so we have heard that various governments have licitly and not so licitly managed to get hold of lists of people with bank accounts in funny places. What has become apparent is that these lists are being shared with the tax authorities of any interested country. Well Spain has shown its interest too...

Tax Office Fights Against Tax Evasion

Alistair Spence Clarke 07 April 2010

The Spanish Government intends to approve a number of changes in legislation to strengthen the tax office's armoury against the black economy and tax fraud. They propose to modify the Penal Code so that substantial tax fraud may be penalised with up to 6 years (currently four years) in jail.