Comment on “Teulada-Moraira Padrón call to avoid tax hike
If the Spanish government had not introduced the 720 reporting, there would not have been such an exodus of expats. The tax regime suddenly appeared threatening and no-one likes that. Also, the reluctance of Spain to abolish the 720 reporting, despite the EU declaring it illegal, is shocking.
Double taxation of British government ex-employees in violation of the bilateral Taxation Treaty is further evidence that the Spanish government are unfairly penalising expats. Spanish ex-civil servants in the UK are not required to declare their Spanish pensions, yet in Spain the Brits must and have an increased tax bill as a result.
In these circumstances, it is not surprising that expats are leaving.