Spain - do you have to declare your stocks?

[sriracha]

While being a resident of Spain, do you have to declare the stocks you own if you basically never sell? Let's say you have a 10 year investing strategy where you sell after 10 years, and you become a Spanish resident after 5 years. When you sell on year 10, will they say "hey you didn't declare anything before" (obviously after declaring your profit from selling)?

 

[Martin Everson]

While being a resident of Spain, do you have to declare the stocks you own if you basically never sell?

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Foreign asset reporting law in Spain​

Since March 2013, if you live in Spain and own assets in excess of €50,000 outside of Spain you are required by law to declare those assets (up to the 31st December of the previous year) to the Spanish government by the 31st March each year (from 2013 onwards).

Failure to correctly declare any offshore assets could incur severe penalties or even a criminal charge (if the tax avoidance is in excess of €120,000).

The purpose of the law is to reduce the amount of tax avoidance while also maximising Spanish tax revenue, primarily from expats living in Spain.

Assets which are required to be declared include, but is not limited to:

• Assets held in any bank accounts
• Property
• Shares
• Life insurance policies

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Let's say you have a 10 year investing strategy where you sell after 10 years, and you become a Spanish resident after 5 years. When you sell on year 10, will they say "hey you didn't declare anything before" (obviously after declaring your profit from selling)?

Well the stock value on date you become a Spanish resident till date you sold will be used to calculate capital gains tax owed.

Best to speak to a tax advisor as Spain is a tax hell.

 

[Panamood]

Spanish residents dont have to declare anything as long as they use a Spanish broker. Once they use a foreign one (Ib, SQ, Tiger... ) They have to declare form 720 if assets > 50K €