March 10 2022 Nº 436
Editorial:
What with the invasion of the Ukraine occupying all our attention (to say nothing of the collapse of the PP and the growth of Vox support to around 20%, plus the staggeringly high electric bill), there wasn’t much space in the news for the item about how the Emeritus (AKA Juan Carlos I) has been declared by the Spanish prosecution to have a clean slate (as we look forward to his speedy return from Foreign Parts).
This would appear to put the very system of jurisprudence on trial, but it is a subject which the media, if they touch it at all, will do so with gloves and forceps.
Thus, this week’s editorial is dedicated to the flowers which are beginning to bloom this spring, perhaps a little early than usual (you know, Global Warming) but nonetheless, and I hope you will agree, prettier than ever.
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Housing:
‘The future of property investment analyzed – and how Spain fits in. Spain’s two largest metropolitan areas have been listed among the top 10 European cities to invest in property for yet another year – and both have risen in the rankings since the 2021 report. The consultancy firm PwC, along with the Urban Land Institute, have published their most recent investment research findings and describe a 'post-pandemic leap in confidence'…’. The story is at Think Spain here.
From Sur in English comes an article on changes in the cadastral value of a property. ‘On the first of January 2022 Spain introduced a new minimal tax value, which is the ´Cadastral Reference Value´ or in Spanish ´Valor de Referencia´. This is important news because the new system results in values that are in general higher and much closer to the real market value than before…’. A lawyer helps us through the small print. From Eye on Spain here: ‘How to ….. Dodge the Tax Man (or not): Catastral Values and Tax in Spain’.
From the ABC here (paywall): ‘The Balearic Islands want to restrict the purchase of homes by foreigners’. It seems highly unlikely that they can achieve this. 20Minutos says in an article from March 2021 here that ‘The purchase and sale of housing by foreigners closed 2020 in the Balearic Islands at 29.6 percent of total operations, placing the islands as the main property market for foreigners. By comparison, the percentage nationally stood at 11.3 percent of total operations…’.
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Tourism:
Spanish News Today says that ‘British tourists retake the Number One spot from the French for foreign holidaymakers in Spain’. (Yay!). It adds ‘Visitors from the UK in January rose by 1.46% (sic) compared to last year, reclaiming their position at the head of the pack’.
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Finance:
The Minister of Finance is considering a new tax to be levied on those companies who operate via Internet and deliver goods to customers, cutting out the shopkeepers. The idea, says El Mundo, is to introduce the tasa amazon in the near future. The doubt at the moment is whether local two-wheeled distributors (known as riders) should also be included.
From Wolf Street here: ‘Spanish stocks. The Spanish IBEX 35 Index dropped 3.6% on Friday and 9.0% for the week, to 7,721, and yup, for buy-and-holders, this stock market has been a total 25-year nightmare. On Friday, stocks dropped to the lower portion of the 25-year range, to a level seen already in 1998. The index is now down 52% from its peak in December 2007’.
‘Spain, with a deficit in cereals, imports annually almost 30% of the corn it needs from Ukraine’. Item found at The Corner here.
‘Orange and MásMóvil negotiate a merger in Spain valued at 19,600 million euros. Both companies confirm that they have begun talks "exclusively" following months of rumours of consolidation in the telecommunications sector’. elDiario.es reports here.
A note from the Transport Sector says that an open-ended strike begins on March 14th.
Modelo 720 – see Letters below.
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Politics:
There are any number of surveys as to how one would vote today if there were a general election (we foreign residents must as always stand around with our hands in our pockets). Antena3 prints one here giving the PSOE 26.5%, the PP at 23.1% and Vox at 19.8%. Podemos is fourth with 10.7% and Ciudadanos gets 3.2%. El Plural gives the PSOE 27.5%, the PP at 20.7% and Vox at 20.6%. The latest (March 6) comes from Electomanía here, with PSOE at 27.5%, Vox at 24% and PP at 16.9%.
Alberto Nuñez Feijóo’s plan when he becomes president of the Partido Popular (he will, won’t he?) is to surround himself with Yesterday’s Men – or, as elDiario.es puts it – ‘Feijóo resorts to Rajoy's 'old PP' to lead the party forward…’.
The Vox MEP Hermann Tertsch says that those Ukrainians fleeing the war are ‘proper refugees’ because they are ‘both white and Christian’. The story at Los Replicantes here.
Mariano Rajoy talks to The Objective here under the title ‘I’d rather have a Vox government than the Frankenstein one we have now’.
The ex-president of Extremadura speaks out regarding the Valdecañas urbanisation reports Epe here. ‘In Extremadura it is difficult to do things because there are always environmentalists around who will be sure to denounce it". We read that Juan Carlos Rodríguez Ibarra believes that the recent Supreme Court ruling on Valdecañas to demolish the luxury urbanisation with its hotel and golf course will be annulled and defends the legality of the project: "All the reports were positive", he says.
Meanwhile, it appears that Extremadura, undoubtedly to the mixed joy of the environmentalists, has one of the largest reserves of lithium in Europe.
March 8th was International Women’s Day. In Spain, there were huge demonstrations in the major cities, although the feminists are apparently still divided between those who support the trans movement and those who don’t ("fuera rabos de nuestros lavabos"). Photos here.
Every political party in Spain supports the Government’s belligerency towards Russia – every one, that is, except Podemos, which thinks that we should be talking more and leaving our sabres un-rattled. The PSC (Catalonian Socialist Party) asks if the cunning plan by the Podemos minister Ione Belarra is to send a consignment of lollipops to the beleaguered Ukrainians. The story is at 20Minutos here. While Podemos may be naïve, an article here suggests that the ‘allies’ have three choices: Nº 1 an all-out (nuclear) war; Nº 2 a quick victory for the Russian invaders; or Nº 3 a slow and agonising victory for the Russian invaders, with supplies of arms sent to the Ukrainians for the long-term aim of weakening the Russian economy (and causing many extra deaths). From Alberto Saiz, the ex-director of the CNI (Spanish secret service): "As much as we send weapons, we are only going to increase the suffering and cost of war; sending weapons in this circumstance is not the most practical thing to do" here. But then, just maybe, and things go really wrong, there could be a possible Nº 4: A sudden regime change in Moscow…
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Gibraltar:
‘Brexit effect: Spain prevents the passage of cargo from Gibraltar’ El Confidencial begins: ‘This Tuesday, the new rules agreed by the Government and the European Union requiring a work permit for British truck drivers began to be applied. The Gibraltarian Executive says that “the reciprocity agreement has been broken” with this unfair measure’. Gibraltar has warned that it will reciprocate with similar measures. And it is not just cargo, either. From The Gibraltar Chronicle here: ‘Ambulances will only be able to transfer routine patients for treatment to Spanish hospitals if they are staffed by GHA employees who live in Spain or by EU nationals, the Government confirmed on Friday, adding it was ‘extremely concerned’ over this new Brexit development’.
‘The Government has green-lighted the transfer of 6,000 tons of waste from Gibraltar to a municipality in Cádiz. The Ministry of Ecological Transition authorizes that the trash, accumulated since the beginning of 2022, may be deposited in the Southern Europe Environmental Complex, located in Los Barrios’. El Debate has more here.
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Europe:
From Sur in English here: ‘Brexpats expands its services to offer more international assistance to foreigners in Spain. The organisation was founded to help British residents stay up to date on their rights before the UK left the European Union’.
‘Ukrainian President Given Standing Ovation In Unprecedented Address To British Parliament. Volodymyr Zelenskyy appeared via a video link before the House of Commons to plead for more help in fending off Russia's invasion’. The Huff Post (with video) here.
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North Africa:
EcSaharaui brings us ‘A list of the companies that plunder the Western Sahara’. It says ‘These companies violate numerous international laws. Even the UN itself has stated in numerous resolutions describing these activities as illegal and clandestine carried out with the backing of the international community, with impunity, allowing Morocco to enrich itself at the expense of the Saharawis; who are unemployed, earning subpar wages, in exile or surviving in refugee camps in Tindouf…’. The list has some familiar names…
Also from EcSaharaui here, with unfortunate timing: ‘Algeria announces plans for large-scale military manoeuvres on its borders with Morocco’.
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Health:
Telecinco says (Wednesday evening) that the drop in Covid-cases has eased off in the past 24 hours and stands at 431 per 100,000 inhabitants. More details here.
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Corruption:
ABC looks at municipal corruption in a piece called ‘Political corruption without remedy’ and the subheading: ‘Many city councils become nests of cronyism, and small niches of corruption where the management of public money is the least part of it, contrasted with illicit enrichment’.
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Royal News:
From El País, March 2nd, here: ‘The Prosecutor's Office of the Supreme Court files the investigation into Juan Carlos I despite verifying numerous fiscal irregularities. The public ministry confirms that it will not file a lawsuit against the king emeritus’. The Guardian here says that ‘The former king Juan Carlos may return to Spain after inquiries are dropped. The Royal had left to live in Abu Dhabi in 2020 following allegations over business dealings relating to Saudi Arabia’. elDiario.es claims that Juan Carlos will likely stay in Abu Dhabi, with regular visits to Spain.
"The King is happy with the outcome. Juan Carlos can come to Spain, he doesn't need anyone's permission because everything is archived, and besides, he won't return to live at La Zarzuela." This is how sources close to Felipe VI express themselves after the Royal House made public the letter in which the Emeritus announces that he feels free to return "frequently" to Spain. (From the El Español newsletter). The likelihood is that the content of the letter had been previously agreed by ‘both sides’.
A cartoon from elDiario.es here shows how the various governments of Spain have handled the eccentricities of Juan Carlos I.
‘The Rise and Fall of King Juan Carlos I’ at Eye on Spain here.
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Media:
It’s curious how the fiendish Russians have censored Western reporters, with all kinds of media and social media close-downs. The Spanish national broadcaster RTVE, along with the EFE news agency, have joined with other international reporters and closed down their operations in Moscow says elDiario.es here. They could apparently get fifteen years for reporting ‘lies’. Meanwhile, our own freedom-loving governments have wisely shut down RT and other Russian broadcasters, because, well, they were telling an awful lot of fibs. And, that’s our job (video)… Maldita lists 78 bulos on the invasion here. ‘The First Casualty of War is Truth’ said Hiram Johnson a hundred years ago.
El País in English appears to have morphed into a kind of International Herald Tribune. All very strange (and nothing about Spain).
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Ecology:
As reported last week, the Junta de Andalucía has voted against controls in the use of water by the strawberry farmers in La Doñana (Huelva). From El País here: ‘The Government will take the legal reform of the Junta de Andalucía to increase agricultural irrigation in Doñana to the Constitutional Court’.
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Various:
Interview at elDiario.es with Bruno Mattucci, the Managing Director of Nissan Iberia: "No car company makes money with electric cars".
From March 21st, those who travel around on electric scooters (or on bicycles) must wear a helmet, says Seguro Patinete Eléctrico here.
A bar-owner in Madrid has been jailed for 3.5 years following the ‘insufferable noise’ that emanated each night from his bar following endless visits from the municipal police.
From Málaga al Día here, we read of a new cultural association called el Círculo de Americanistas de Málaga, bringing links between the Old World and the New.
A story of mine at Eye on Spain here. ‘The Brief yet Exceedingly Independent Republic of Albox’.
‘Live on Eire is Spain’s only Irish radio programme. It is broadcast on Wednesday evenings at 7pm CET (6pm Irish time) for two hours on Talk Radio Europe based in Southern Spain. The station repeats the programme which is presented by Irish broadcaster Ger Sweeney each Sunday from 7pm...’. Found at The Emerald Connection here.
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See Spain:
Seville’s Feria de Abril will be held this year in May instead. More at Think Spain here.
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Letters:
Despite there being a very short time remaining- until the end of this month- to comply with the associated requirements, so far there hasn’t been a lot of media coverage concerning the revisions to the Asset Declaration (Modelo 720) forced by the recent ruling by the European Court of Justice. In effect most of the reporting requirements remain in place, only the potential penalties have been brought in line with other violations of Spanish tax law.
In previous years since the imposition on the Asset Declaration diktat, imposed by the former PP regime, in 2012/13, many tax advisors and gestors have provided guidance to their clients as to their reporting requirements, bearing in mind that those clients must report through such advisors, etc. ( A nice source of their revenue!) . But so far apart from brief media reports noting the national parliament and government have agreed to substantially revise the penalties associated with the process in line with the ECJ decision, there hasn’t been much useful information sent to those who should present new or revised reporting forms, i.e. Modelo 720.
What follows is what appears to be sound and correct advice from one (located in Madrid):
(Name withheld)
What has changed for the Modelo 720?
By Chris Webb
ITS STILL HERE BUT WHAT´S CHANGED……
We are fast approaching the 2022 deadline to file the Modelo 720.
Here we are in March 2022, nine years on from when the Spanish authorities launched their new “anti-fraud” plan to prevent tax evasion. We were initially advised it was aimed at Spanish nationals trying to hide their assets overseas, but quickly realised that most people affected were the International community with assets back home……
This law was introduced back in 2013, at the time the authorities didn’t really highlight this requirement very well and most of the country were not aware it had been passed. Fast forward to 2022 and I am still meeting people on a regular basis who have never heard of it.
So here it is, a brief outline of the Modelo 720 and what you need to do.
WHO HAS TO REPORT? Any person, permanent establishment or company who is tax resident in Spain and is the owner, titleholder, representative, authorised person, beneficiary, or has disposal powers of assets located outside of Spain worth more than €50,000 (see assets below), must report the value of these assets.
WHEN DO YOU REPORT? Between 1 January and 31 March of each tax year.
WHICH ASSETS MUST BE REPORTED?
There are three main asset classes that need to be reported if the total value of each class is over the €50,000 limit:
Bank/Building Society accounts located outside of Spain – It is important to note that if you hold several bank accounts and the TOTAL amount held exceeds the €50,000 limit, then ALL the accounts need to be reported, even those with a nil balance.
Investments / Life or disability insurance policies – If you are the owner or policyholder of an investment or insurance policy then these will need to be declared if they exceed €50,000. Again, there is a requirement if you have multiple investments or policies, that if the total value exceeds the limit then they will all need reporting. Interestingly if you are holding what we describe as Spanish compliant Life Insurance Bonds, then the onus of reporting on the Modelo falls to the institution themselves.
Property – Owners or part owners of an overseas property where the value exceeds the limit must report these properties.
NOTE – You need to report the Modelo 720 again if any of your asset classes have increased by over €20,000 since they were last reported.
What has changed for the Modelo 720?
WHAT IF YOU DON’T REPORT IN TIME / CORRECTLY / OR AT ALL?
This is where things have changed in 2022. Previously The Spanish Tax Authority had implemented a series of heavy penalties for those who do not comply with the regulation.
These penalties can be imposed for late filing, incomplete/inaccurate filing and even for presenting the information to them in a way not deemed acceptable. Pre 2022 these fines could equate to 150% of the asset value. In a recent European court ruling these fines were deemed excessive and have been ruled out by the authorities. It is important to note though that the courts did agree a need for the Modelo 720 itself.
Whilst the excessive fines have been struck out please don’t think that there are no repercussions for not filing. The Spanish authorities will release a new penalty / fine structure that will be more acceptable to the European courts. (But when?)
For further information you can visit the Agencia Tributaria website here re: Modelo 720 to obtain the latest information, in Spanish.
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Finally:
A video from Susana, an American lady who is pleased she moved to Spain, here. (‘The kids in the Spanish schools don’t have to do active shooter drills’, she says). Most of it makes perfect sense. A gloomy article here says that, despite all this, we are slowly moving towards the American model.
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