Taxes and Declarations
It's tax season in the U.S. And because I will be gone for around a month, I wanted to be sure that I had everything in order. In the past I did my own taxes, but both last year and this year I am using an American accountant who specializes in clients who live overseas. Tax year 2014 was very complicated with finishing work, retiring, selling my part of the house, moving to Barcelona, etc. For 2015, it will be less complicated, but having begun receiving Social Security payments in 2015, along with my continued government pension, I wanted to be sure that it was handled properly. I am still awaiting on my tax statements for my retirement and non-retirement investments, but I already sent off the rest of the documentation to my accountant, which she very much appreciated.
Although Spanish taxes are not due until June, there is an annual Declaración de Patrimonio (Wealth Report) that is due by the end of March for residents. It only needs to be filed if you have accumulated assets anywhere in the world that exceeds 50,000€ in at least one of three areas; bank or cash accounts, property (other than your primary home unless it was purchased for over 300k €), and investment accounts. There are HUGE penalties if you do not declare your assets and are caught, enough to wipe out your entire assets. These penalties are very controversial and my Spanish accountant told me last year that it is being challenged in Spanish court, but it will take many years to obtain a decision. He also said that many people here, both citizens and foreign residents, have not filed, either intentionally or by ignorance. But I did not want to risk my financial savings by following their example. So last year I filed. This report does not in itself require any taxes to be paid. However, during the Spanish tax season, it does become incorporated into taxes owed to the Spanish state. Let me explain further.When you file your taxes in June, you may also need to file your Wealth Tax report if your accumulated world-wide wealth is over a certain threshold. That threshold in Spain is different depending on the region (called Autonomous Community), like Catalunya, in which you reside. So, last year I had to pay around 700€ for just that part of my Spanish taxes. What I found difficult to accept at first is that one has to pay tax on the same wealth over the set threshold each and every year. In the U.S., that is inconceivable. Once you paid tax on a set amount of money that was earned in a given year, it is never taxed again. This Wealth Tax in Spain is not unique. Many other countries also have a wealth tax, including France, Norway, India, Italy and Switzerland. I just look at this tax as the small price that I pay to live in this beautiful city and country.
First Hike After Surgery
Last Sunday I decided to go on my first hike after my knee surgery. It was probably somewhat precipitous in hindsight. The distance was short, only 7 kilometers. But what I didn't know was that there was a steep descent at the beginning of the hike, which put a lot of pressure on both knees. We went to a beautiful pueblo called Rupit, and nearby was a waterfall and magnificent cliffs. I enjoyed it, but I've been paying for it this week, slowly getting my knee back to where it was before the hike.Leaving for France for a Month
The day after we get back to Barcelona I will be taking the train to the Shambhala Meditation Retreat, Dechen Choling, which is located in France for a month-long retreat, called a Dathun in Tibetan. I've been there twice before. It's a beautiful rural center, a serene, idyllic and bucolic setting. I will be there to assist the program. I am very much looking forward to it. Sunset, our cat, will be taken care of by my friend Oscar in his home and another friend will be stopping by the house often to be sure that everything is okay. My next blog article will be in early April.
