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Shock - Income Tax AND Wealth Tax

 
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Kelly

“Live for less in Spain” they said. I thought I did my research and accepted that there would be income tax in Spain on world-wide income with a deduction for taxes paid in the U.S. What I didn’t know was that every year you have to declare your net worth – “Patrimonio” – and pay a tax for amounts over about 700000 euros by March 31. For those of us retiring, we have amassed a significant amount to allow this. Though pensions are not included, many of us have retirement plans with annuities which are not exempt.

When I have tried to ask about this of other expats online, I don’t get much of an answer if any. It seems that many are flying under the radar or claiming ignorance. And some of these, who have a very obvious online presence describing their life as residents in Spain – some selling books about it with advice, deny that they have any tax obligation, saying all their income is outside Spain. I can only hope that they are living outside of Spain for more than 183 days per year.

My question is this – is there any evidence of expats being targeted for tax evasion? My husband is paranoid – if we don’t file and pay there is a chance that we may lose the opportunity to renew our current 2 year visa – or worse.

Really looking forward to your comments.

Posted June 6th, 2017