The Hacienda can also collect information from utility providers, as well as paperwork for vehicles and property ownership, to establish where individuals are effectively living.
“For example, they can check electricity bills to confirm whether a property is being lived in long enough to make someone a resident and disprove it is just for holiday use.
“They can also use this information to identify if people have an income arising from letting out property without declaring it,” said Blevins Franks.
The Hacienda may also target those who have declared themselves resident in lower taxation territories like Gibraltar, Andorra and Portugal, but effectively are resident in Spain. This could also catch out British expats who declare themselves UK residents without realising they are actually tax resident in Spain, the IFA added.
