Buyers who purchased a property off plan in spain and lost money when the developers went bust may now qualify for a refund
You had always dreamed of owning a place in the sun. It almost became a reality. That trip will always be one to remember. You fell in love with the little fishing village on the coast and the development being built on the cliff was what your dreams were made of. The views would be spectacular. You didn´t take much convincing. You had a lump sum to invest and you didn´t hold back – that was what it was there for after all. The family all agreed – what could be better than to invest in one´s dreams? Until it all went wrong…the dream shattered by the development company going bust during the recession. Your deposit all but lost…or so you thought…
In 2015 the Spanish Supreme Court ruled that banks must refund the deposits placed by investors on off plan properties where the developer went out of business.
If you think you are entitled to a refund, contact Corral & Alcaraz. You will need to take the majority of banks to court in order to recover your deposit.
corralalcarazHAVE YOU LOST THE DEPOSIT YOU PUT DOWN ON A PROPERTY YOU PURCHASED OFF PLAN?
UK TAXPAYERS COULD FACE PENALTIES IF THEY FAIL TO DISCLOSE UNDECLARED OFFSHORE TAX LIABILITIES BEFORE NEW LEGISLATION COMES INTO FORCE ON 30 SEPTEMBER 2018
On 30 September 2018 new legislation called ‘Requirement to Correct’ (RTC) comes into force. It requires UK taxpayers to notify HM Revenue and Customs (HMRC) about any offshore tax liabilities relating to UK income tax, capital gains tax or inheritance tax. Tax penalties will be significantly higher for those who do not declare offshore liabilities before 30 September 2018.
myriadIt’s time for UK taxpayers to declare offshore assets and income!
The convenience of the new European Will – Until the entry into force of the Regulation 650/2012, the law ruling cross-border successions was the one contained in the article 9.8 of the Spanish Civil Code.
This article records a personal conception on succession rights, being applicable the national law of the deceased which, at some points like inheritance of real properties, entered into a positive conflict with the law of the State in which the real estate is located. According to this, an English national who owns a property in Spain and deceases in Spain would have his property applied the Spanish succession law, whilst the English succession law would be applied to the rest of his assets.
corralalcarazThe convenience of the new European Will
DO YOU OWN PROPERTY IN SPAIN AND HAVE RECEIVED THE LETTER FROM THE TAX OFFICE?
The Tax Office has sent a massive campaign to alert foreign property owners in Spain. You are very likely to have received this letter if you own a holiday home in Spain.
They question your fiscal status and ask you to report and prove either way you are non resident or fiscal resident in Spain in the years 2010 and/or 2011. You will have different liabilities depending on your fiscal status weather you are fiscal resident or non resident in Spain.
corralalcarazDO YOU OWN PROPERTY IN SPAIN AND HAVE RECEIVED THE LETTER FROM THE TAX OFFICE?
CAPITAL GAINS TAX ON THE SALE OF PROPERTIES ACQUIRED BEFORE 31ST DECEMBER 1994
One of the key measures introduced by the new tax law of 28th November, Law 28/2014, which is effective from this year 2015 is the abolishment of the coefficient which reduces capital gains tax when selling estate property based on how long the property has been owned. This could allow us to increase the purchase value of our property and consequently reduce our tax bill when selling, for those properties acquired before 31st December 1994.
corralalcarazCAPITAL GAINS TAX ON THE SALE OF PROPERTIES
The new tax law which is effective from 2015 was published in the Official Spanish Gazette (BOE) on 28th November, Law 28/2014. This law contains the latest changes affecting non residents taxation.
Non Residents who own property in Spain need to complete and submit a Non Resident Tax income form.
For owners not obtaining a rental income, the tax rate has been reduced from 24.75% to 20% for people living in the EU zone, Iceland and Norway. (24% for non EU members). This tax rate will be further reduced to 19% in 2016.
corralalcarazLATEST CHANGES IN NON RESIDENT TAX 2015
The tax form 720 must be completed, the same as last year, by all tax residents in Spain with a deadline of 31st March 2015, reporting assets held as of the 31.12.2014 with a value of more than 50,000 Euros.
Accounts in foreign banks: Balance at 31st December 2014 and average balance in the last quarter.
Properties and property rights owned in any other country.
Shares, rights, life insurances and incomes deposited, handled or obtained abroad.
Tax evaders will incur a penalty of 5K for every asset not declared after the deadline with a minimum penalty of 10,000. In addition, non-declared assets might be considered by the Tax Office as capital gains and could incur an additional penalty up to 150% over the total taxable amount.
For more information please feel free to contact Corral&Alcaraz Law Firm. Please seek expert advice as it is not worth the risk.
The new treaty signed between the Kingdom of Spain and The United Kingdom of Great Britain and Northern Ireland, published in the Official Gazette (BOE) on 15th May 2014, is also a key issue for expats. This replaces the old 1976 Double Tax Agreement.
The new treaty is especially relevant to expat pensioners who are in receipt of civil service pensions from public sector occupations i.e. civil servants, military personnel, fire service, police service and local authority employees who were previously exempt from Spanish tax.
6 MONTHS GRACE PERIOD FOR SPANISH FISCAL RESIDENTS TO DECLARE THEIR FOREIGN PENSIONS IN SPAIN STARTS ON 1st JANUARY
It has now been published in the Official Spanish Gazette (BOE) on 28th November, Law 28/2014, that Spanish fiscal residents will be given a 6 months grace period to update their fiscal situation to declare pensions received from their own countries.
This act comes into force, effectively from 1st January 2015, and follows the new draft for Spanish Income Tax and Non Resident Tax Law, approved on 1st August 2014.
corralalcarazSPANISH FISCAL RESIDENTS TO DECLARE THEIR FOREIGN PENSIONS IN SPAIN
Spanish fiscal residents will have to upgrade their fiscal situation, declaring pensions received from their countries.
The Spanish Tax Office has announced to open a 6 months period starting January 2015, allowing them to regularize their situation according to new draft for Spanish Income Tax and Non Resident Tax Law, just approved last 1st August.
corralalcarazGRACE TAX PERIOD TO SPANISH FISCAL RESIDENTS