Surrey accountants TWP Accounting LLP have highlighted new Spanish government proposals with financial implications for British ex-pats.
The government led by Prime Minister Jose Luis Rodriguez Zapatero, which was re-elected in March, is to introduce an €18 billion plan to revive the economy and encourage foreign investment. The main changes, announced on 18 April, include:
- scrapping the wealth tax, as of 2008, at a cost to the government of €1.8 billion. The tax is levied on assets and property in Spain each 31 December
- a €400 income tax rebate for 16 million workers and retirees
- a new deduction for earned income, including pensions, equal to 0.9% of the net family disposable income.
- improved tax treatment for refurbishing buildings
- repayment of VAT changed from annually to monthly
- homeowners having trouble making mortgage repayments will be allowed to extend repayment periods at no cost
- improved tax treatment for non-residents investing in public debt instruments.
Philip Munk, TWP managing partner, said: “In common with other nations, the Spanish economy is suffering in the wake of the global credit crunch and the government is acting to stimulate its economy, which has been enjoying a housing-led boom for some years.
“These measures are likely to have at implications for the estimated one million Britons living in Spain as well as those who own property there. Tax affairs can be complicated under the UK tax regime, and even so when someone has property or other interests abroad, so seeking professional advice is always a wise move.”
For further, information please contact TWP on 01932 704 700 or visit www.twpwealthmanagement.co.uk