Blog

GRACE TAX PERIOD TO SPANISH FISCAL RESIDENTS

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.

For those who have not included their pensions, when completing a tax return in Spain within this 6 months period, no fines or interest charges for late payment will be applied, and for those who have already upgraded their situation, any fine or charge paid will be refunded.

A complementary tax return, for those who have completed one, and not included or wrongly included their pensions, or just a new tax return will need to be submitted for the four years behind.

For a tax purpose you are considered Spanish Fiscal Resident if you stay in our country more than 183 days within a year period.

Recent agreements signed among EU countries to interchange fiscal information, provide the Spanish Authorities with a more efficient communication system, to help to find out people receiving pensions abroad and non declaring their incomes according to law.

The Spanish Treasury Minister, Cristobal Montoro, recently explain that nearly 28,000 files were opened against resident pensioners who have not be declaring their foreign incomes in Spain. However, he highlighted that no fines or charges will be applied, as that it is not the goal of the Spanish Inland Revenue. They want just to make sure that Spanish pensioners and Spanish fiscal residents complete their annual income tax on the right way, including pensions and rest of earnings obtained worldwide.

Spanish Tax Office says: this measure will enhance the integration of these citizens, same as any other resident in Spain. Our country is an attractive place where pensioners will enjoy their retirement, and this measure will benefit Spain as residential destination for pensioners with high economic standing, whom in such way will cooperate with the economic recovery

corralalcarazGRACE TAX PERIOD TO SPANISH FISCAL RESIDENTS

Leave a Reply

Your email address will not be published. Required fields are marked *