money
32
8 - 14 JulY 2011
Take that to the bank
by
Suzanne O’Connell Customer Care at Ábaco
WHAT SURPRISES you most about Spain? Is it the fiesta that begins at 1am? Driving around roundabouts in the outside lane? Or the speed (or lack of it) with which things get done?
All of these have caused me to gawp, gesticulate or drum fingers in frustration at different times. For example, I arrived with complete incredulity at Rojales fiesta last summer to discover that at 1am the party is only just starting - time for my hot chocolate and bed socks (in the winter that is). I continue to watch in amazement as cars engage in some kind of dancing ritual, weaving in and out of each other at roundabout exits, and marvel that we ever managed to get a telephone line installed… Another surprise: they can mess with your bank account. Yes, that safe and secure bastion of privacy can be raided by the Spanish tax man/ woman without your permission. Now that just wouldn’t happen in
the UK – would it? Okay, they might indiscriminately charge you £30 or more for an overdraft letter but help themselves to your hard-earned cash? Surely not… If they don’t in the UK (and someone might advise me otherwise) they certainly do in Spain. They can dip in their fingers for fines, for taxes, for anything they think you owe and you haven’t paid. The banks have an allegiance with the tax authorities in a way that we are not used to. So when they send out letters for confirmation of non-residency we are, understandably, confused and just a little bit nervous. Why is it important for the bank to know whether you are resident or non-resident? There are two types of account and it is important that your bank has you down for the right one. If you are a resident you will need to have a certificate from your bank annually as part of your resident tax declaration. If you are a nonresident your account is tax free but you should be paying non-resident imputed tax annually.
Every year, Ábaco receives queries from clients about the non-resident confirmation letter. This is a letter that banks routinely send out every year or every two years to check that those clients with non-resident accounts are still non-resident. Not surprisingly they also charge you for the privilege. It’s now 17€ per person to have your account retained as a non-resident one. The letter requires you to sign and return. If you don’t, your bank account might be blocked until you can provide proof of tax residency in the UK. So if you receive this letter, don’t be surprised. It’s a standard issue and needs nothing more than your confirmation. Sign it (if you are non-resident that is) and be done with it and enjoy all the more pleasant surprises that Spain has to offer. If you would like a FREE, no obligation tax consultation with one of Ábaco’s friendly team of advisers call the ÁbacoConnect Help-line 96 670 3748: www.abacoconnect.com
If you would like a FREE, no obligation tax consultation and help with completing your annual tax declaration contact one of Ábaco’s friendly team on ÁbacoConnect Help-line 966 703 748 | www.abacoconnect.com