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Thread: Hacienda asking for declarations past 5 years, never done one and selling home soon!

  1. #1
    Junior Member
    Join Date
    May 2016
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    1

    Default Hacienda asking for declarations past 5 years, never done one and selling home soon!

    Hope I can get some advice here! In a nutshell, as a Spanish resident for several years and joint home owner (our only asset in Spain where we reside 100%), I stupidly did not submit declarations ever, nor has my partner. Hacienda have traced me (not my partner, who has never worked in Spain) due to our property being let via Airbnb, here in Barcelona it is a way of iife for a great many, both locals and expats! There is currently a witch hunt by the tax office to recoup non declared rental monies and it is possible that huge fines will be imposed for not having a tourist license, but that is another subject!

    We have wanted to sell our flat for years but due to the crisis were unable to. Things are picking up now so it is the time to sell and we'd been planning our move the last few weeks, until I got the very worrying Hacienda letter. I immediately found a lawyer who recommends I submit the undeclared rental incomes as the letter specifically asks for this, but I have also had other undeclared monies in my account during these years, he recommends I do not itemise these. I will have a small tax bill to pay based on the undeclared rental but a very high one if I include other income. These figures do not reflect any fines or interests and I have been told I must pay these amounts when the forms are sent. My lawyer says that Hacienda usually take around 3 months to send out letters for fines and possible requests for receipts and bank balances. Is there a high chance of this and what is the timing? Why would Haclenda believe the figures on the tax form without seeing bank accounts and receipts? For this reason I anticipate an investigation further down the line.

    We plan to move back to the UK and will pay 3% tax retention from our sale and leave funds in the bank so they can take the remaining CGT, probably around 12k in total. I do not want to come back here and we will not have the funds to pay huge fines and other penalties so prefer to risk they track us down back home. Would we be able to buy another property in UK without further taxes there if we've paid CGT here? We will cancel our Spanish residency just before leaving and close the bank account, which I have read is required by law. If they come after us, we will try to negotiate payments but it will take a lifetime to pay back, so we would be forced to go bankrupt in UK, which I have read does not waiver debts in Spain and if we returned to live or work or open a bank account again (which we never will) the authorities would have a claim. We are utterly terrified of what can happen but will try to pay what we can before we leave, rather than sell up and not offer anything. Any help would be greatly appreciated!

  2. #2

    Default

    Hello,


    Our tax advisors and our lawyers in Spain can help you with your problem.

    Contact us and we can help you

    Thanks
    Carbray International Law Firm in Spain
    www.carbray.es - Lawyers in Spain

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