THE SPANISH TAX OFFICE WILL RETURN 20 MILLION EUROS TO PENSIONERS, SPANISH AND FOREIGNERS, WHO HAVE BEEN FINED FOR NOT DECLARING THEIR INCOME FROM PENSIONS ABROAD.
Since 2008 the Tax Office has been investigating residents in Spain, both Spanish and foreign, who receive pensions from abroad and have not included such income on their income tax returns.
Now the Minister of Finance intends to amend the Law on Income Tax of Individuals with the goal of an “extraordinary regularization” will allows a “waiver” of the administrative responsibilities of pensioners on the tax they pay for their pensions, meaning surcharges, penalties and interest for late payment for failing to declare their pensions from abroad will be pardoned.
It is expected to cancel around 20 million euros of fines and will be start within six months from the entry into force of the rule, scheduled for January 1, so that those pensioners who have not yet done so, can submit income tax returns for their unreported income without having to worry about late payment fines.
At the same time the new Decree provides for those who have already received and / or paid the said fines, penalties and interest on late payments to claim a reimbursement thereof.
If you have already been affected, you can claim a refund, but must do so by submitting your applications to the Tax Agency.
The tax administration will respond to requests from citizens within the second half of 2015.
If you have been fined for not declaring your foreign pension, then contact us to see how you can request a refund of the fine.