Tax warning for expats in Spain

EXPATS are being warned they could be hit with hidden taxes when legalising undeclared assets as part of an amnesty.

Under the terms of the Spanish government initiative, individuals and businesses will be required to pay 10 per cent of the value of their assets or cash.

But one Costa del Sol-based legal firm is warning Britons they could be subject to additional charges on certain possessions, which must be declared by November 30.

“The amnesty refers to income and company taxes, but not other taxes. Therefore, it implies that the taxman could claim other taxes such as VAT for transactions not declared in the past,” said Denise Moloney, from Manilva Solicitors.

“We recommend people be careful and delay acting on the amnesty until the Inland Revenue has clarified the tax implications next month.”