Taxing issue

T HE Spanish taxman is now demanding that British residents on the island declare their worldwide assets when they make their tax returns. This has obviously caused, something of an outcry. As far as I know the taxman only wants to be informed of assets outside Spain. At the moment the tax authorities in Spain says that it is just for “administrative reasons,” and they are not planning any action. However, a certain degree of fear has gripped the foreign community who fear that it is just the first step in the search for “outside Spain tax.” I don´t really know the ins or outs of the new ruling but I do know that Spain is desperately trying to raise funds at the moment. This move and the controversial matriculation tax on yachts has led to some people claiming that the tax authorities are going after foreign residents too heavily. The matriculation tax is deeply unfair and the last thing we need at the moment is foreign residents and investors being scared away from Spain for tax reasons.