Is my mate's head a marley?

[Buckets]

A friend was in Torrevieja last week tending to another friiend's apartment. He told me that something on the tax front was happening on the 1st June 2005. He says that the Spanish authorities will be informing the UK authorities of all UK citizens who have property in Spain.

Is this true? Are there implications - tax or whatever? Has anyone in cyberTorre heard anything about the matter or is my mate's head a marley.

It's easy to see how rumours start

Buckets

Im sorry I don't understand the phrase ' Is my mate's head a marley?' but there is some truth in his statement. A new EU Directive has been issued which requires member states to inform other member states of the financial status of members who live in their country. This has been seen as Spain (for example) informing the UK tax authorities of people who live and own property in Spain. Apparently a number of people rent out property in Spain and then don't declare this to the UK tax authorities - hard to beleive isn't it?
It will take some time for the law to bed in but certainly this was initiated by the meeting of finance Ministers - so you draw your own conclusions!

[Biker Dave]

Hi,

I have just received a letter here in Twickenham from the Head Office of my Spanish bank BBVA advising that the start date for this is July 1st 2005.

It`s called the Savings Directive.

I suggest everyone with a Spanish Bank account contacts their bank for a leaflet.

[janzon]

Here is a copy of my letter from my bank:


March 2005

Dear Client,

As BBVA always keeps you informed about everything related to your investments, we are writing to inform you about the change in European tax legislation.

The new Savings Directive covers all European Union citizens and regulates the income obtained from investments in countries other than the country where you habitually reside.

According to the new legislation, the financial institution through which you contract financial products is obliged to provide the tax authorities in that country (for example, Spain) with details of the income obtained. The Spanish tax authorities will then pass on this information to the tax authorities in the country where you are resident for tax purposes.

This Savings Directive only affects individuals, not corporate entities, and the obligation to provide information is only focused on some investment products, specifically income from savings accounts, certain fixed-income securities and investment funds in which more that 40% is invested in fixed-income securities. Income from shares and from investment funds in which more that 60% is invested in equity securities are not included.

Therefore, provided nothing occurs to stop the European regulation from entering into force, we must inform you that, starting in July 2005, together with the obligations we regularly comply with in accordance with Spanish legislation, as a paying entity, will also be obliged to provide such information on investments to the Spanish tax authorities.

In order to provide you with full details of the effect of this change in European tax legislation, we invite you........etc etc

[Buckets]

[Doc]

Buckets,

That's bad news - having to file a self-assessment to declare a few euros worth of interest (if that) will be a pain in the a*se.

I recently had to file three previous tax year's worth of self-assessments so I know how long-winded it is. The good news is that I got several thousand back as a rebate over the three periods - the tax office then wrote to me saying that they were switching me back to PAYE .

What do Spanish banks pay in the way of interest? Is tax not then paid at source on this in Spain (as in the UK)? If so you won't have to declare it in the UK under the double taxation rule.

Chris.

[lord warden]

rspltd's question

Buckets' phrase'


is my mates head a marley? - means - is my mate thick or what?
and marley refers to marble

Buckets - Are you from Ireland?

[mon]

Lord Warden, I assume he is - where else would you get such a great saying. It made me laugh as I haven't heard it in years. Could I hazard a guess that you are from Bangor?

I haven't received any info from my bank regarding this as yet (CAM). Can anyone else shed any light on this?

[Buckets]

Thanks everyone for your responses so far.

Bangor - Aye, right. My granny goes parachuting every Sunday. No. I hail from the Big Smoke - up the Ormeau.

Buckets

[mon]

Buckets, I was actually asking Lord Warden if he was from Bangor.

Your granny must be very fit and active for her age!!!

It's a different world isn't? Thanks for the translations - thought I only had to learn Spanish.

[lord warden]

reply

rspltd
Buckets seems to be a bit of a character, but I'll keep you right.


Mon,

Not a very original code name I'm afraid, but yes we do live in Bangor.
I take it you do too? Everytime I mention Torre we hear of someone else that has a place there. We are going out this month and I'm really looking forward to it.

[Buckets]

Happy St Patrick's Day everyone. Go easy on the green Cruzcampo.

Here is a link to a clear explanation of the Savings Directive as it applies to the Isle of Man - and probably Spain.. http://www.gov.im/lib/docs/iomfinanc...axdirectiv.pdf

And rspltd, you are right - I certainly am a character. And I'll be being that character in Popeyes (Los Locos beach) this time next week.

and now to watch Middlesboro' get humiliated by Sporting.

Cheers all

Buckets

[mon]

Lord Warden - no I am not from Bangor, just know the area. I am from the "Big Smoke" as Buckets described it.

It seems like lots of people had a good St Paddy's Day - the roads were so quiet this morning I am assuming most are in bed nursing hangovers.

Buckets, having read the guide for the IOM, am I right in thinking that this Directive only applies to savings accounts / investments and that if you only have a current account (with not very much in it!) this does not apply?