Spain, portugal, and greece
- Thread starter santosg
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In Spain, as of right now, you have to declare your bank accounts (even with $0 balance), any crypto you own (exchanges, wallets, etc), and probably broker accounts too, but not 100% sure about the last one.
Besides all that, there's the 720 Model as @santosg said, which you have to file if you have over 50k Eur in assets such as money in bank accounts, funds, stocks, property, etc. (Physical gold, jewellery, cash stored in a vault, cars, art, wine and foreign-registered boats are excluded)
Fines for not complying are absurd, starting at around 5k Eur for not declaring your accounts (with a minimum︀ of 10k), 1.5k for declaring them late, and around 10k for each category on the︁ 720 Model. You can also face up to 150% of the value of the assets︂ in fines if you never paid taxes for the assets either. The legality of the︃ 720 Model is questionable and you'll probably be able to take them to court and︄ maybe get a smaller fine, but it'll be a mess and waste of time.
Some of the info above may not be 100% accurate but all I'm saying is if︅ you're a tax resident in Spain and you're doing shady things with a lot of︆ money, get out. If it's low amounts I doubt they'll care.
I don't know about︇ Portugal and Greece, but they will probably both give you big fines if they find︈ out you haven't paid taxes on assets you have in other countries.
Besides all that, there's the 720 Model as @santosg said, which you have to file if you have over 50k Eur in assets such as money in bank accounts, funds, stocks, property, etc. (Physical gold, jewellery, cash stored in a vault, cars, art, wine and foreign-registered boats are excluded)
Fines for not complying are absurd, starting at around 5k Eur for not declaring your accounts (with a minimum︀ of 10k), 1.5k for declaring them late, and around 10k for each category on the︁ 720 Model. You can also face up to 150% of the value of the assets︂ in fines if you never paid taxes for the assets either. The legality of the︃ 720 Model is questionable and you'll probably be able to take them to court and︄ maybe get a smaller fine, but it'll be a mess and waste of time.
Some of the info above may not be 100% accurate but all I'm saying is if︅ you're a tax resident in Spain and you're doing shady things with a lot of︆ money, get out. If it's low amounts I doubt they'll care.
I don't know about︇ Portugal and Greece, but they will probably both give you big fines if they find︈ out you haven't paid taxes on assets you have in other countries.
Pretty much. The more developed a country is, they are more strict.
For instance, Croatia is in the EU (since 2013), but they are still not that strict and have not developed such extreme procedures, but they are probably striving to.
For instance, Croatia is in the EU (since 2013), but they are still not that strict and have not developed such extreme procedures, but they are probably striving to.
He never said that?
You should start using google instead of posting nonsense all the time.
Most developed countries will ask you to disclose offshore assets. If the amount is low, you shouldn't have any problem not disclosing them (I've mentioned this above with the example of Spain), however, if you're talking about big sums of money/assets, not disclosing them could lead to a lot of problems and fines. Furthermore, if you haven't paid taxes on those assets either, your problem is much bigger and you could end︀ up in jail for a lot of different charges, depending on the mood of the︁ taxman (fraud, tax evasion, money laundering, etc).
So to answer your question, are they the︂ same? Probably not as they'll have different laws. Are they similar? Most likely yes.
You should start using google instead of posting nonsense all the time.
Most developed countries will ask you to disclose offshore assets. If the amount is low, you shouldn't have any problem not disclosing them (I've mentioned this above with the example of Spain), however, if you're talking about big sums of money/assets, not disclosing them could lead to a lot of problems and fines. Furthermore, if you haven't paid taxes on those assets either, your problem is much bigger and you could end︀ up in jail for a lot of different charges, depending on the mood of the︁ taxman (fraud, tax evasion, money laundering, etc).
So to answer your question, are they the︂ same? Probably not as they'll have different laws. Are they similar? Most likely yes.
f**k,, I might look like a clown now... but anyway I have to︊ say it. I'm thinking about moving to Spain with family (coming from Mexico) (still early︋ stages, plan is under development, not yet there)
My general plan is to set up︌ an offshore account in (DUBAI) for long term investments like ( ETFs / VWRL /︍ REITs.. etc.. anything that generate passive income, looking at 8-10% p/year) Plan is to withdraw︎ less than $50k a year from the passive income)
I will be declaring all my️ accounts, as well as filling my taxes every year in Spain, paying taxes as per below:
-Under Spain Tax Code a Resident has to pay 21% tax for income obtained from interest, investments or dividends, when less than <EU$50k... I have no problem with paying this tax. (However the $50k represents ONLY 30% of the total passive generated income)
-The other 70% will stay invested (thus, is not income). In order to take advantage of the following tax code: under Spain Tax Code, taxes can be deferred on Dividends or Interest that are NOT liquidated and immediately put back into the principal, such a Compounded Interest Investments. Thus, there are no taxes to be paid here (yet), until you actually︀ take money from your investment and put it in your bank. Meaning it can remain︁ invested & compounding/growing without paying taxes on it. Obviously I will be declaring my bank︂ accounts and filing the taxes on time every year and living a normal live under︃ the rules.
1. Do you think this scheme will work for this scenario?
2. Which︄ strategy you consider best for a long term investment 8-10% gains p/year. (compounding)? Withdrawing only︅ $50k p/year
3. Based on your experience & knowledge about Spain and taking in consideration︆ this scenario? Do you recommend any better strategy? (taking into account that family is in︇ the equation, paying 21% tax is OK for me, NOT MORE than this%)
*Taking the︈ Residency and Living in Dubai with Family to enjoy the 0% taxes could be a︉ possibility, but I rather leave this scenario as the 2nd option, since Spain checks all︊ the boxes (language, culture, live style, weather), and if my strategy is validated, I would︋ be paying 10k per year in taxes (minus deductions, insurance, schooling, medicals etc. could be︌ 7-8k per year) which I'm OK with that amount.
*I will need an exit strategy,︍ but that will be in the future for whenever I want to liquidate my entire︎ portfolio (once outside Spain), however, since we are a young family, we are talking about️ 20years from now (which means we can leave the investment compounding for that time frame, withdrawing only 50k per year/paying only 21% on taxes p/year while keeping the rest of the passive generated income as and addition to the principal to continue) ( I just read about the 'exit tax' in Spain)
*It scares me to read comments here like: "stay away from EU & Spain" "EU tax hell'.. It might be all true, but if you become wealthy with clean money in Mexico, believe me, you are better off in another part of the world, and if this works, living in Spain paying 10k︀ in taxes per year sounds more like a haven for me.
Appreciate any input, comment,︁ recommendation, experience you can share with me...
My general plan is to set up︌ an offshore account in (DUBAI) for long term investments like ( ETFs / VWRL /︍ REITs.. etc.. anything that generate passive income, looking at 8-10% p/year) Plan is to withdraw︎ less than $50k a year from the passive income)
I will be declaring all my️ accounts, as well as filling my taxes every year in Spain, paying taxes as per below:
-Under Spain Tax Code a Resident has to pay 21% tax for income obtained from interest, investments or dividends, when less than <EU$50k... I have no problem with paying this tax. (However the $50k represents ONLY 30% of the total passive generated income)
-The other 70% will stay invested (thus, is not income). In order to take advantage of the following tax code: under Spain Tax Code, taxes can be deferred on Dividends or Interest that are NOT liquidated and immediately put back into the principal, such a Compounded Interest Investments. Thus, there are no taxes to be paid here (yet), until you actually︀ take money from your investment and put it in your bank. Meaning it can remain︁ invested & compounding/growing without paying taxes on it. Obviously I will be declaring my bank︂ accounts and filing the taxes on time every year and living a normal live under︃ the rules.
1. Do you think this scheme will work for this scenario?
2. Which︄ strategy you consider best for a long term investment 8-10% gains p/year. (compounding)? Withdrawing only︅ $50k p/year
3. Based on your experience & knowledge about Spain and taking in consideration︆ this scenario? Do you recommend any better strategy? (taking into account that family is in︇ the equation, paying 21% tax is OK for me, NOT MORE than this%)
*Taking the︈ Residency and Living in Dubai with Family to enjoy the 0% taxes could be a︉ possibility, but I rather leave this scenario as the 2nd option, since Spain checks all︊ the boxes (language, culture, live style, weather), and if my strategy is validated, I would︋ be paying 10k per year in taxes (minus deductions, insurance, schooling, medicals etc. could be︌ 7-8k per year) which I'm OK with that amount.
*I will need an exit strategy,︍ but that will be in the future for whenever I want to liquidate my entire︎ portfolio (once outside Spain), however, since we are a young family, we are talking about️ 20years from now (which means we can leave the investment compounding for that time frame, withdrawing only 50k per year/paying only 21% on taxes p/year while keeping the rest of the passive generated income as and addition to the principal to continue) ( I just read about the 'exit tax' in Spain)
*It scares me to read comments here like: "stay away from EU & Spain" "EU tax hell'.. It might be all true, but if you become wealthy with clean money in Mexico, believe me, you are better off in another part of the world, and if this works, living in Spain paying 10k︀ in taxes per year sounds more like a haven for me.
Appreciate any input, comment,︁ recommendation, experience you can share with me...
That may be your best option, many relocate to Spain even Europeans. I know some may say it's not worth it but obvious people do.
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