Latest news with #AEAT
Telegraph
4 days ago
- Business
- Telegraph
Spain is robbing British expats, says former tax chief
The former head of Spain's tax office has accused officials in the country of 'robbery' against British expats. Ignacio Ruiz-Jarabo said the Spanish Tax Agency (AEAT), which he oversaw from 1998 to 2001, had created a 'fiscal hell' that put off international investors. He told The Telegraph of how wealthy foreigners who moved to the European nation to take advantage of a lucrative tax scheme faced retrospective investigations into their finances. The tax rules, dubbed the 'Beckham law' after Sir David Beckham utilised them during his time at Real Madrid, charge foreign workers a flat 24.75pc tax rate on Spanish-sourced income up to €600,000 (£517,000) per year for six years. It is far lower than the progressive tax rates of up to 47pc paid by Spaniards. Dividends, interest and capital gains generated outside Spain are generally exempt from tax under the regime. But users of the scheme who have high incomes risk being caught up in tax audits that target the wealthy in Spain, Mr Ruiz-Jarabo said. 'There isn't a special focus on foreigners, [but] there is more of a focus on high earners and business people because they are bound to have more assets. 'Many of the people who have been certified have a few years later received a tax inspection denying their [tax] position as expatriates. This situation produces legal insecurity.' He said he knew of cases where the authorities targeted foreigners with financial audits, regardless of their status under the tax scheme. 'This is robbery to expatriates that have been unfortunate enough to be on the receiving end of these inspections.' He claimed as a result, foreigners and native Spanish taxpayers are threatened with huge tax bills and fines as much as three times the size of alleged unpaid taxes. Mr Ruiz-Jarabo said Spanish officials were incentivised to target wealthy expats because of a bonus structure that rewards those who collect the most tax. In 2019, the last year for which data is available, a €95m (£82m) bonus pot was set aside to incentivise raising €150bn of income tax and VAT revenue. The bonus system has been criticised for encouraging arbitrary investigations and confiscations. Taxpayers in Spain appealed 30pc of tax audits in recent years, according to figures provided by the Spanish government. It said less than 1pc of taxpayers using the 'Beckham law' had been the subject of tax audits. AEAT conducts around 27,000 tax assessments per year, according to official sources. Between 2020 and 2023, courts ruled totally or partially in favour of AEAT in 77pc of those cases. This compares with a rate of around 85pc for appeals won by HMRC during the same period. Last year, there were approximately 275,000 British people living in Spain. It is not known how many have used the country's flat tax rules for foreigners, which were introduced in 2005. The scheme requires that applicants have moved to Spain for work purposes, having obtained a contract with a Spanish company. They must not have been a tax resident in the country in the five years previously. 'Fiscal hell for Spaniards and foreigners' Mr Ruiz-Jarabo also criticised the proposed 100pc levy on the sale of Spanish properties to non-EU buyers. 'It is a completely unfair system this proposal of 100pc tax on foreigners purchasing property. It is an aggression against the freedom of movement of capital, it goes against the values of the European Union to put this type of barrier against the movement of capital. 'It is telling investors this is not a safe place to invest. It can only be understood from a radical Left ideology that those with money to invest should be seen as suspicious. It does not bode well for Spain's economy if it is implemented.' Madrid lawmakers are expected to vote on the proposal in the second half of this year. The levy could represent the latest blow for Britons who live and holiday in Spain. The ruling Spanish Socialist Workers' Party also wants to charge 21pc VAT on stays of less than 30 days – more than double the rate paid by hotels. Growing anti-tourist sentiment in Spain has already seen cities like Malaga and Madrid capping new licences for holiday lets, while Barcelona will ban them completely by 2028. Mr Ruiz-Jarabo said laws defending taxpayers in Spain had suffered 'mutilations' under Pedro Sanchez, the country's socialist prime minister, causing a 'fiscal hell for Spaniards and foreigners alike'. Official sources at the Spanish government said: 'Spain is an attractive and welcoming country for British businesses and citizens just as the United Kingdom continues to be a key partner and point of reference for Spanish companies and consumers. 'The Spanish Tax Agency is a prestigious, transparent institution, internationally recognised organisation and fully aligned with the highest standards expected of a modern tax administration.'
Local Spain
18-03-2025
- Business
- Local Spain
Spain to monitor people who display wealth which doesn't match earnings
The Spanish Tax Agency (AEAT) presented on Monday its new Tax Control Plan for 2025, which includes careful monitoring of taxpayers who show significant differences between their actual standard of living and what's reflected in their tax returns. Spain's tax authority will also pay special attention to the use of shell companies, schemes to conceal income, the fraudulent use of deductions, the income of non-residents, and the underground economy as a whole. Unlike conventional high-net-worth individuals, Hacienda points out that there are "very specific" situations in which fraudsters often use shell companies to divert personal expenses, place assets in them that are actually for personal use or conceal income through fictitious loans. Spain's Treasury will focus on analysing what portion of these expenses or investments are actually personal income that should be declared as such, and not as deductible expenses or investments computed with the intention of defrauding Spanish tax authorities. The use of corporations to deduct personal expenses or the fraudulent use of assets in corporations which are often under the name of a partner or a family member will be closely scrutinised as well. Furthermore, the Treasury will intensify tax controls on business owners or professionals who do not earn income through credit card payments in sectors where this form of payment is common. A special emphasis will also be placed on pursuing fake business activities or the issuance and receipt of fake invoices to obtain fraudulent VAT refunds. Regarding non-residents, Spanish tax authorities will double down on efforts to rein in income or profits from real estate and to identify artists and athletes who withhold less than they should. Regarding the underground economy, Spain's taxman will keep a close eye on industries where this practice is common. Special attention will be paid to the use of payment methods located abroad, a tactic used to not have to report earnings to the AEAT. Additionally, Spain's Treasury will strengthen its tax oversight of online neobanks and alternative payment methods which are increasingly becoming a means of tax evasion or fraud, namely crypto. Spain's new Tax Control Plan has been met with some level of distrust by the tax technicians' union Gestha, who've argued that in practice most tax control continues to focus on 'small fry', in other words "individuals, the self-employed, and SMEs."
Yahoo
18-03-2025
- Business
- Yahoo
Wolters Kluwer and AEAT Launch 40+ City Tour Covering Invoicing Regulations in Spain
The company and the Tax Agency will offer practical sessions on the implementation of the Regulation on Computerized Invoicing Systems, derived from the Anti-Fraud Law, to facilitate adaptation to this regulatory and technological change. BARCELONA, Spain, March 18, 2025--(BUSINESS WIRE)--Wolters Kluwer Tax & Accounting España, a leading company in the development of software solutions, information and services for professional firms and companies, today launches an informative tour on the new invoicing processes that will soon affect the business world starting with the Anti-Fraud Law that will begin to be implemented on 29 July . With the aim of bringing information to professionals from companies and firms throughout Spain, the tour will visit more than 40 cities in collaboration with the State Tax Administration Agency (AEAT) and a wide network of specialized partners. Entitled "The new invoicing: the change is now", this tour comes at a key moment for companies and professional practices: 2025 is a decisive year as the changes in invoicing processes derived from the Anti-Fraud Law with the entry into force of the Regulation on Computerized Invoicing Systems. From 29 July, only software adapted to this new regulation will be allowed to be acquired, which establishes the generation of a digital record for each invoice issued, which can be voluntarily sent to the AEAT (through the Verifactu modality). This new development - to which the use of electronic invoices will be added in the coming years as a result of the Crea y Crece Law - will be the focus of the information sessions that Wolters Kluwer will be holding throughout Spain to accompany companies and professional practices in their transition to the new invoicing system and to offer, with the collaboration of experts from the AEAT, recommendations for adapting to the latest regulatory requirements, in addition to resolving any doubts that may arise in a practical manner. This tour thus reinforces Wolters Kluwer's commitment to accompany companies and professional practices and consolidates its role as a strategic ally in adapting to the constant legislative and technological changes, given that, beyond the regulatory challenge, these new requirements represent a boost to the digitalization of the business fabric. The tour starts today in Santander and will continue over the next few weeks in more than 40 cities such as Madrid, Barcelona, Seville, Valencia, Malaga, Zaragoza, A Coruña, Valladolid, Alicante, Cadiz, Oviedo and Leon. The dates and cities can be consulted at: The tour is supported by an extensive network of Wolters Kluwer partners, such as a3Satel, Link Soluciones, Landín, Esofitec, a3Sides, Softwariza3, Solucyl, NEA, Copermatica, Solusoft, Sascom, iUNiS, UNAEX, Zione, Emesa and Arsys, among others, who will contribute their experience and knowledge both in updating regulations and in technological and business management solutions that help companies and professional firms adapt to the new legal framework. About Wolters Kluwer Wolters Kluwer (Euronext: WKL) is a global leader in information solutions, software and services for professionals in healthcare; tax and accounting; financial and corporate compliance; legal and regulatory; corporate performance and ESG. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with technology and services. Wolters Kluwer reported 2024 annual revenues of €5.9 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 21,600 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX, Euro Stoxx 50 and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt (ADR) program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY). For more information, visit follow us on LinkedIn, Facebook, YouTube and Instagram. View source version on Contacts Shannon WherryAssociate Director, External CommunicationsWolters Kluwer Tax & AccountingOffice: +1 Mariló RomeroCommunication ManagerWolters Kluwer Tax & Accounting Europe South Region608 85 18 Elisa ÁlvarezRoman649 29 46 Sign in to access your portfolio
