If you perceive pensions from abroad you can tidy up your tax situation without penalties only until June 30

The law provides that resident in Spain must declare all their income in this country irrespective of their source, without prejudice to the various international treaties could establish. Many residents who receive income from their countries of origin, or others, think it is enough to be paying taxes at source and not take into account the fact that not to fill up the income tax in the country where they live or not including all the worldwide incomes may cause them penalties, surcharges and default interest.

The government has given to the residents that already receive pensions from abroad and did not include them in their resident taxes a period of six months, that will end on June 30th, to regularize undeclared pensions without the risk of being fined.

The new law, which has reformed the income tax and the Income Tax of Non Resident,  includes a provision to that effect. From the Ministry of Economic this is justified claiming ignorance of taxpayers, based on the characteristics of these people, old age pensioners, who have greater difficulty to understand the Spanish legislation, the average have lived many years abroad and in usually do not have large fortunes.

The Spanish tax authorities have discovered in recent years the existence of taxpayers resident in Spain, that while receiving pensions from abroad they were not properly included in the income taxes they submitted. These groups have a special adjustment period of six months from January 2015. In this period, affected taxpayers may submit self-assessments of additional tax periods not prescribed in which have received pensions from abroad that have not been declared.

Taxpayers should enter 100% of the corresponding amount of tax being exempt from penalties, surcharges or interest on arrears. This measure applies to both foreign pensioners resident in Spain, as Spanish pensioners who have returned after being migrants in other countries

In addition, in order not to harm those taxpayers who have already regularized their tax situation spontaneously and paid penalties, surcharges and interest for late payment the Government will cancel by law such sanctions and penalties that will be returned to the taxpayer.

This measure, that came into force in January 2015, can be a good opportunity to tidy your taxes in Spain, and, as always, we recommend that you contact your tax advisor to get the best professional advice. 

VP ADVISERS offers you during this 2015 a 40€ IVA included service fee for producing the Resident tax model. And as special offer, for all of our clients following us on twitter, linkedin or becoming friends in facebook we will ofer a 25% off discount, so you can enjoy  a30€ IVA included service fee if you are socially connected to us.

For further details do not hesitate in contact VP Advisers.