Changes at the Income Tax in Spain 2015

 The most relevant issues related to the Spanish Income Tax for Natural Persons.

Changes Income Tax in Spain. The fiscal advisors of our law firm in Marbella have the pleasure to inform you about the most significant changes that are related to the income tax for natural persons that entered into force from the 1st January 2015. This is a summary of the Spanish Reforms of the laws 26, 27 and 28/2014

1. The exemption on the first 1500 euros received on dividends or partnership assets shall stop to exist, and from now onwards, the special part of the tax shall be encumbered.

2. The percentage on income from work shall decrease from 40% to 30% with a vesting period of more than two years provided that some legal requirements are complied with, for example that such kind of income has not been perceived during the last five years.

3. Abatement coefficients (Transitory provision nº 9): From 1st January this regime shall not be applied any more and will be encumbered as capital gains without reduction.

4. The correction coefficients shall not be applied any more from 1st January onwards for the calculation of the capital gains arising from the conveyance of real estate.

5. The tax exemption of the income arising from conveyances carried out by taxpayers over 65 years old shall be extended not only to the family property but to any element of their equity provided that those funds will be used to establish a life annuity in their favour within 6 monts after the conveyance.

6. The deduction for renting appartments is eliminated for any new rental contract signed after the 1st January. The previous ones will maintain this possibility if they have apply this fiscal advantage before.

7. Pension plan taxes: the maximum amounts for deductions of the taxable income will be decreased to the sum of 8000 euros.

8. Capital gains: the capital gains and losses will pass to the part of the taxable income independent of whether these were obtained on short or long term.

Do not hesitate to contact the Spanish accountants economists and tax advisers of our law firm in Marbella, Málaga, Spain for any enquiry!