The tax consultants of the Spanish law firm, Arcos & Lamers Asociados, wish to point out an important detail concerning the Income tax in Spain mentioned at the law 16/2012, of 27th December, establishing several measures aimed to consolidating public finances. This change does affect to the Spanish Income tax rules applicable to financial year 2013 that should be declared in 2014.
Elimination of the deduction for home investment.
With effect as from 1st January 2013, the deduction of investment in a Spanish home is eliminated at the Spanish Income Tax.
However, the above mentioned Spanish law has establishing a transitional period where the deduction at the Income tax in Spain is still in place for those tax resident individuals below mentioned. In general terms the deduction goes up to 15% of investment with a limit of Euros. 9.040. Kindly note that the terms and conditions of the mentioned deduction and / or abolishment will vary depending of the Spanish region where the tax paying is resident.
a) Taxpayers who acquired their residence (home) prior to 1st January 2013.
b) Taxpayers who have paid for refurbishments at there homes prior to 1st January 2013, provided that those works are completed before the 1st January 2017.
For additional information please contact the tax advisers, registered accountants (economists) and tax lawyers of this leading law firm settled in Marbella, Arcos & Lamers Asociados, your tax specialist in Marbella, Málaga, Spain.
Maria Teresa Arcos, lawyer in Marbella.
Wim Lamers, economist in Marbella.
Marbella, September, 2013.
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