Madrid.—The British Embassy has updated its guidance on taxation for Britons who are resident in Spain, following the recent Royal Decree that reinforces an existing obligation on all residents in Spain – both Spanish and foreign nationalities alike - to file an annual informative declaration of assets held overseas. The Decree allows for tougher penalties for non-compliance.

The guidance can be found on the ‘Finance' page of the ‘Living in Spain' section of the British Embassy website at www.ukinspain.fco.gov.uk . The direct link is http://ukinspain.fco.gov.uk/en/help-for-british-nationals/living-in-spain/finance.

The updated guidance says: “Britain has a double taxation agreement with Spain to ensure people do not pay tax on the same income in both countries. “In accordance with Spanish and international law, all residents in Spain (nationals and non-nationals alike) are required to declare assets or groups of assets held outside Spain. “Assets may include bank accounts, securities, rights, insurance, annuities, property, etc. and the declaration is a separate exercise to the annual tax return.