New tax laws could drive ‘thousands’ of expats from Spain, claim opponents
New tax laws could drive ‘thousands’ of expats from Spain, claim opponents
By Dave Jones
OPPONENTS of Spain’s new asset declaration rules are hoping the European Union will intervene to derail the diktat.
A Spanish law firm has already presented a complaint to Brussels which has been accepted by the European Commission (EC).
At the same time a group of ‘concerned expats’ from Valencia region were set to present a formal complaint to the EU’s Petitions Committee this week.
They note that the asset declaration requirement ‘is causing considerable uncertainty and a degree of anxiety as the reporting deadline of April 30 approaches’.
They explain they are ‘increasingly concerned they are being targeted’ and forced to reveal ‘sensitive personal information and data to others including authorities with no guarantees that this information will not be used in a tax or asset grab to follow from the declaration’.
In a manifesto circulated this week, they flag up ‘disproportionate penalties for even minor reporting errors’.
They are concerned the ‘discrimination’ of the asset declaration will ‘drive thousands of expatriates from Spain’ which will have ‘a dire impact on an economy already in deep crisis’.
In their manifesto they state: “We came here to enjoy the climate and culture of Spain, believing we would be welcomed and accorded fair treatment under the norms of the European Union and Spanish law.”
It continues: “We see that many Spaniards appear to be immune from prosecution even when they are openly exposed in the media, have known and very substantial assets of dubious origins abroad in fiscal paradises, all the while ignoring successive amnesties and demands these assets be repatriated to Spain.
“In contrast, our worldwide, tax-paid assets mainly derive from our working lives prior to coming to Spain, and many of us have preferred to maintain those assets away from banks here, given their recent performance record.
“We are not convinced the asset reporting process and any consequent demands for special taxes or levies are in accordance with EU norms, guarantees provided for in the Charter of Fundamental Rights and Freedoms and the Spanish Constitution: We may be forced to participate in a process that is not correct or legal.”
According to the protesters, ‘officials of the EU Commission have also clearly stated that this process discriminates against non-Spanish residents on a number of counts’.
The EU is being urged to ‘take this matter forward as one of extreme urgency and importance’.
They also call for ‘more understanding and flexibility’ from the ministry of finance over forms of reporting and for the reporting deadline to be postponed until the EU can rule on the issue.
“Clear reporting guidelines, preferably in European languages other than Spanish, are essential and should be issued at once,” they state; adding that: “The reporting process should allow a margin of human error and should be made proportionate to any detected and deliberate misdemeanour.”
EU PETITION
The protesters are hoping their petition to the EU’s Petitions’ Committee will be registered this week.
It would then be passed to a coordinating group ‘to get it on track for consideration by the committee’, according to an EU source.
The manifesto is due to be included as a supplemental document to the petition.
LAWYERS’ COMPLAINT
The complaint presented by Majorca-based law firm DMS Consulting against the Kingdom of Spain for ‘attacking the free movement of people and goods’ over the asset declaration rules will now be examined by the Commission.
If European law has been broken it would lead to an infraction procedure being launched against Spain, says DMS Consulting.
According to DMS Consulting, the legislation is incompatible with the Community Law as it presents an important restriction to the free movement of people and capitals, set out in Articles 21 and 63 of the Treaty on the Functioning of the European Union.
