Spanish Tax on UK Employment Income

[chris(madrid)]

Originally Posted by crookesey

One poster intimated that Barclays had been ordered to supply the UK Revenue with details of their clients off shore investments. If this were so there would be no off shore investment houses, Gordon Brown attempted such a move in respect of Isle of Man accounts back in 1997 but was told to go forth and multiply. However all withdrawals that are brought back on shore with the exception of 5% of capital withdrawals per annum in respect of bonds are liable to taxation.

Not INTIMATE - PURE FACT. If you attemt to opn a NEW account now in the UK and quote the address as Spain, you WILL BE ASKED FOR DOCUMENTATION (incl your NIE) - the Spainish revenue service WILL be informed. It also applies to certain offshore banking areas.

BUT THIS FROM A GIB' OFSHORE BANKING SITE

NB: The EU's Savings Tax Directive, which came into force on 1st July, 2005, means that for all citizens of EU member states there is an exchange of information between the Gibraltar authorities and the individuals' home tax authorities in regard to payments of interest and other returns on savings. The Directive does not however apply to payments to corporate bodies.

AFAIK, NO EU BASED/ALLIED OFFSHORE BANKING HAVEN IS EXEMPT - MADIERA WAS - I've a friend who DOES use places like the Bahamas due to this.

At the moment the inland revenues across Europe are exchanging info. The current fly in the ointment is the UK - My contact believes it is mostly due to do with the UKs financial year not matching the Caledar year (as in most countries). She has also heard of accounts being frozen. Your call.

[crookesey]

Originally Posted by chris(madrid)

Not INTIMATE - PURE FACT. If you attemt to opn a NEW account now in the UK and quote the address as Spain, you WILL BE ASKED FOR DOCUMENTATION (incl your NIE) - the Spainish revenue service WILL be informed. It also applies to certain offshore banking areas.

BUT THIS FROM A GIB' OFSHORE BANKING SITE

NB: The EU's Savings Tax Directive, which came into force on 1st July, 2005, means that for all citizens of EU member states there is an exchange of information between the Gibraltar authorities and the individuals' home tax authorities in regard to payments of interest and other returns on savings. The Directive does not however apply to payments to corporate bodies.

AFAIK, NO EU BASED/ALLIED OFFSHORE BANKING HAVEN IS EXEMPT - MADIERA WAS - I've a friend who DOES use places like the Bahamas due to this.

At the moment the inland revenues across Europe are exchanging info. The current fly in the ointment is the UK - My contact believes it is mostly due to do with the UKs financial year not matching the Caledar year (as in most countries). She has also heard of accounts being frozen. Your call.

Offshore doesn't mean Gibraltar, the Isle of Man is totally secure, if it wasn't why the hell would people use it? Contacts are strange bedfellows, I have only been in the investment industry since Adam was a lad, so what would I know?

[covfan71]

i mean going home for a week once a month to work on the railways

[Ellan_Vannin]

If you have an offshore bank account on the Isle of Man and are an individual resident in an EU State you can elect to have your details (i.e. residency,interest received etc.) disclosed to the Manx tax authorities who will in turn disclose these to the tax authorities of your residence. In this case interest will be received tax free in the Isle of Man, however you can elect to not have your details disclosed by the bank in which case there will be a witholding tax of 15% rising to 20% from 1 July 2008 and then 35% from 1 July 2011.

EV

[Stravinsky]

Originally Posted by crookesey

Offshore doesn't mean Gibraltar, the Isle of Man is totally secure, if it wasn't why the hell would people use it? Contacts are strange bedfellows, I have only been in the investment industry since Adam was a lad, so what would I know?

Well I'm with Chris on this one.

We live here. We've experienced what happens, we've been to the tax offices, tax consultants who are expert in Spanish Tax laws, and also I consulted with an international tax consultant before I came here. Maybe they're all wrong, who knows

[Stravinsky]

Originally Posted by covfan71

i mean going home for a week once a month to work on the railways

You will however be a Spanish resident. My "income" comes from the UK. I go back fairly regularly, but my main place of residence is Spain. And as such I am de registered for tax in the UK and I pay it here.

Although, as we have said here many many times, you wont pay tax twice because of reciprocal arrangements, tax is normally paid in your main place of residence, where indeed you will become a fiscal resident here anyway after 183 days

[crookesey]

Originally Posted by Stravinsky

Well I'm with Chris on this one.

We live here. We've experienced what happens, we've been to the tax offices, tax consultants who are expert in Spanish Tax laws, and also I consulted with an international tax consultant before I came here. Maybe they're all wrong, who knows

Ok you win, as soon as you transact any business in the Isle of Man they immediately inform every tax authority in the world.

The revenue require resonable cause to pry into anyones private and personal affairs, this is not yet the Soviet Union (Mr Brown is working on it though).

[Stravinsky]

Originally Posted by crookesey

Ok you win, as soon as you transact any business in the Isle of Man they immediately inform every tax authority in the world.

The revenue require resonable cause to pry into anyones private and personal affairs, this is not yet the Soviet Union (Mr Brown is working on it though).

Crooksey, I'm not any expert on what the IOM do and dont do, all I'm telling you is what you should be declaring here. The offshore investment will form part of your wealth tax portfolio. Wealth tax is payable on your worldwide assets and investments.

Now if you choose to not declare that then it is up to you, but all I can tell you is that there are big fines.

Also it is absolutely true that there was a court case with Barclays Bank that finalised in them being made to disclose all their offshore account / investors records (presumably as they felt they were not being declared). One presumes therefore that all banks have now fallen into line with this and offshore accounts are now the common knowledge of HMRC .... and will be in turn eventally common knowledge of the Spanish Tax authorities when they sort out the non residents.

[chris(madrid)]

Originally Posted by Stravinsky

The offshore investment will form part of your wealth tax portfolio. Wealth tax is payable on your worldwide assets and investments.

I'm informed that NEXT year you will NOT have to declare "Patrimonio" btw. - Interest accrued overseas - YES.

[chris(madrid)]

Originally Posted by crookesey

Ok you win, as soon as you transact any business in the Isle of Man they immediately inform every tax authority in the world.

ONLY the EU afiak. Whilst I'm sure it's irksome to IOM banks that despite having certain advantages they are bound as being part of the EU - losing their IBAN/BACS/SWIFT status would KILL THEM STONE DEAD.

Many US (and yes - Russian/Chinese etc) banks suffer that that are unable to obtain such. And as a result have to PAY another bank to do their international transactions. First hand experience. Somebody ends up paying this fee & it's NEVER the banks themselves!

There used to be (for example) an easy way to "hide" cash. Put it into a UK building Society WITHOUT international status. I believe there are still one or two. But getting at the contents mean visiting in person or going via another UK bank etc and so it's visible all of a sudden.

Has nowt to do with Brown - it's been on its' way for a LONG time.