TAX AND FINANCIALS  - HANDLE WITH CARE

Spain is not a tax friendly country. Yes, it's a fact. So, one cannot stress the importance of taking good tax and financial advice. Yes you will have to pay professionals their fees but the alternative to not taking adequate advice is that if something does go wrong then not only can it be very expensive indeed but equally enormously stressful for your self and your family. Buy a real estate property or start a business, the same would apply.

We at Mallorca Living can, if you so wish, introduce you to tax, mortgage and financial advisors, both in the UK and in Palma, Mallorca. It is always worth remembering that the Spanish system of taxation is quite different from that in other EU countries such as the UK. Not worth guessing as to how it might work. Leave that to someone who knows.

SOME POINTS TO COGITATE

Your bank accounts are not quite so secret anymore so far as the authorities are concerned. As from next year most EU member states will automatically exchange information on accounts held overseas, Spain being one of them.

Have you considered the implications of a Spanish or say a UK mortgage.   Worth knowing which might suit better.
If you travel around a lot, do you know where you are Tax Resident and what responsibilities ensue.   And what of your Domicile, for can this be used to your benefit if circumstances allow. Important words having far reaching tax implications on your income and assets.

The use of trusts in countries like the UK or offshore are not uncommon. Did you know that Spain does not recognise trusts as a legal entity.   Another area to handle with care.

Do you own a corporate business within say the EU. Do you know where 'control' and decision making are exercised. Unwittingly corporations can find themselves also taxed in another country, such as Spain.

Have you considered the impact of ownership (jointly etc) of assets and property.   Do you have a will.   Do you know what you are worth.  What could be the impact of Inheritance Tax.

Is your pension being correctly taxed.
Are you planning to return to your country of birth, and if so have you considered the tax implications.

NOTE

The above are only some general matters to consider if of any relevance to yourself. The list is only an introduction and is not exhaustive. To be safe - Our Advice is, take appropriate professional advice relating to your individual circumstances. If you have any suggestions or contributions then do please let us know for the benefit of all visitors to this site.