Part 2 - Axel gets busted by Hacienda

[sriracha]

I wanted to give more details indeed.

So the video says that although Hacienda‍ does more or less random checks, if they get you, they can F up your⁠ life. It also says that there is a 4 year statute of limitations for taxes.⁤

So I can see a situation where Axel goes to Spain, keeps a very very⁣ low profile (nothing in his name, darks etc) and after one year he decides that⁢ he wants to stay there (to quote Johnny Doe, he has "entrepreneurial low self-esteem" or︀ something like that 🙂 ), so he tells Spain "I just arrived", he becomes a Spanish︁ freelancer ("autonomo") and pays taxes.

In the meantime, he makes sure that the bulk of︂ his money stays out of Spain (EMIs etc) and doesn't get things in his name︃ (apartments, boats etc) so if Hacienda busts him, he can just leave the country without︄ losing his entire life savings etc.
After 4 years, when the statute of limitations has︅ elapsed, then he maybe buys an apartment etc.

 

[RealDude]

The video is generally meant for german dreamers, as⁠ they prefer spain. if you don't know german it is not worth watching. The bottom⁤ line is that you will very easily and with high probability always run into some⁣ spanish tax trap, because you are actively obliged to declare in advance and the spanish⁢ tax office is passive. so you will always have to expect draconian penalties afterwards due︀ to the complex tax laws.

 

[sriracha]

It is also geared toward people who send their kids to⁢ school in Spain, buy property in Spain etc - see my previous post.

 

[European]

By German dreamers you mean Germans that move to Spain but⁢ avoid becoming tax residents there, just like Axel initially?

Thanks. By keeping his money out of Spain (EMIs︌ etc) you mean Axel will hide it from Hacienda after registering in Spain? If that︍ is the case we are talking about a completely different situation from what Axel explained︎ initially. And about keeping your money in EMIs so that Hacienda cannot seize it ...️ I am not sure, but I would bet that if the EMI is in the‌ EU Hacienda will be able to freeze it i they need to

 

[Deepbarrels]

Could Axel move his money from a EMI (in USD) to an account with Interactive‌ brokers with an address from another country then Spain to invest it there or would‍ interactive brokers require justification on taxes paid on that money held in the EMI?

 

[uplana]

This is one of the best threads on OCT - bookmarked and following the conversation.‌

 

[sriracha]

Not hiding, just holding.⁢ Say you are an “autonomo” and take your pay on a certain date. It is︀ one thing to keep it in a physical Spanish bank, another thing to keep it︁ on Revolut (or similar).
Physical national banks are basically ATMs for tax offices, they can︂ freeze (or take) your money with a click, they have a console with your accounts︃ a “freeze” and a “withdraw“ button.

With an EMI, you might have time to make︄ your money fly away if you sense danger.

 

[European]

I see. Good point. It might give you some more time. Not sure⁢ how it works now but I don't think it will take long before they have︀ the same power over EMIs as over banks

 

[sriracha]

In November there are⁠ general elections in Spain and the communist will be kicked out of government. That might⁤ lower taxes, as it happened in Madrid with Ayuso.