(English) Monthly Newsletter - Arcos & Lamers Asociados

Income tax in Spain 2015, Taxation on income of savings 2015

For the income tax return of the year 2014, the gains and losses of assets arising from conveyances with vesting period equal or lower to a year, were included in the general tax base, whereas such gains and losses with a vesting period of more than a year were included in the tax base of savings.

The applicable legislation regarding the obtaining of the income tax return for natural persons (IRPF) has eliminated such difference between long term and short term. This means that from 01.01.2015, all gains and losses of assets arising from conveyances shall be included in the tax base of savings.

Taxation on the tax base of savings

The capital gains generated by the purchase-sales of assets shall be taxed as part of the tax base of savings of the scheme for IPRF; independently of the vesting period.

In this way, from 2015 onwards, all capital gains shall tax the same percentage that corresponds to the tax base for savings:

Inheritance in Spain, reductions on inheritance tax in Andalucía (I)

Are you the owner of a property in Spain? Then you must be aware that in the Autonomous Community of Andalusia you can apply for a series of reductions on the corresponding Spanish Inheritance tax base.

Reductions on the Inheritance tax base in Andalucía.

Certain relevant reductions will be applied onto the tax base of the inheritance and gift tax. In Andalusia, we must add on top of the general reduction also the so-called autonomous reductions as well as bonuses on top of the national reductions set out in the different autonomous regulation.

Bonuses on top of the general Spanish inheritance tax reductions

The general tax reduction bonuses are applied based on the following adjustments:

Regulation of E.U. in matters of succession. European Certificate of succession. I

European regulations with regards the Inheritance, Wills and Succession in Spain will enter in force as from 17.08.2015.

Our Spanish law firm in Marbella is frequently approached by European citizens concerned about the situation in which their assets located in Spain after their decease, the law applicable to their succession or taxes payable.

The European Union seeks to facilitate “the proper functioning of the internal market should be facilitated by removing the obstacles to the free movement of persons who currently face difficulties in asserting their rights in the context of a succession having cross-border implications. In the European area of justice, citizens must be able to organise their succession in advance. The rights of heirs and legatees, of other persons close to the deceased and of creditors of the succession must be effectively guaranteed.”

We refer to specific Inheritance issues that may appear for European citizens. European Union approved in 2012 a Regulation (Nº 650/2012, 4th July 2012) regulating jurisdiction, applicable law, recognition and enforcement of decisions and public documents and on the creation of a European Certificate of Succession.