How automatic exchange of information and the Modelo 720 could effect you. Blacktower Financial Management

Many people who have move to Spain and have kept assets in the UK must declare their overseas assets each year by 31 st March for the previous year date ending 31 st December. There are 3 categories: Cash, Investments and Property. If the value of the overseas asset in either category is above €50,000 then a declaration via the Modelo 720 should be completed. There are fines imposed if there is a failure to complete.

If you have not yet completed the Modelo 720 when perhaps you think you should have done you may have thought ‘the Spanish authorities will never find out about my assets’. To a degree it is true where the Spanish authorities have been under a bit of pressure with the new tidal wave of information being received and processing this in the correct way and they have somewhat been dependant on individuals coming forward with information. This year this is about to change following the global automatic exchange of information regime. Just over half of the countries involved will be reporting to Spain this year and gathering of data should be complete by the end of 2017 by 101 countries so that by 2018 all information will be ready to be exchanged.

What this means if you have an ISA with a UK Bank for example in the UK with a value over €50,000 the Spanish authorities will be informed automatically. Or if you have accounts in the Isle of Man or Switzerland where there previously was some form of anonymity then details of these also will also be sent to the Spanish authorities automatically.

The best thing anyone can do is seek some Financial Advice now. If investments are held, there are products available that have the Spanish stamp of authority (Like Spanish Compliant Bonds) then these assets do not have to be declared on the Modelo 720. Just like Spanish Bank accounts. If you are new to Spain and have no idea what to do then take Financial advice as you may be able to reposition your investments to avoid having to complete the Modelo 720 in the future and avoid the heavy fines.

In today’s financial climate it is essential you do everything you can to make sure your money is safe and secure and what you want to transpire in the future has the best chance of happening.

If you need advice or if have any questions regarding the above you can contact me, Keith Littlewood DipPFS on 657 684 094 or email keith.littlewood@blacktowerfm.com. You can now make an  appointment to come and have a no-obligation discussion in our office in San Pedro del Pinatar.

The above information was correct at the time of preparation and does not constitute investment advice and you should seek advice from a professional adviser before embarking on any financial planning activity.

Blacktower Financial Management (Int) Ltd is licensed in Gibraltar by the Financial Services Commission (FSC) and is registered with both the DGS and CNMV in Spain.