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Reduced Spanish tax rate for transfer tax in the acquisition of real estate properties

property in SpainTax rates in Spain; The transfer tax and stamp duty in Spain is a type of tax arising in the following transactions.

1º.- First, in the transfer of assets, being purchase sale of properties and furniture, used vehicles and boats.

2º.- Second, in company transactions, as setting up of a company, increase and  reduction of capital and liquidation of companies.

3º.- Third, in granting of legal documents such as Deeds granted in front of a public notary, registration of documents at a Public Registry and other notary transactions.

 

Spanish Tax calender – 1st Quarter 2014

Tax calendar in Spain

Sara Duarte, senior accountant of accountancy firm Arcos & Lamers Asociados, has kindly prepared a Spanish Tax Calendar 2014.  The information included in the calendar regarding the 1st Quarter 2014 is general information and will focus on the tax obligations relevant to a majority of our clients.  For this reason not all tax obligations and declarations will be included.  If you require information on a specific tax obligation or declaration not included on the calendar please contact us and we will advise you accordantly.

Spanish tax forms JANUARY 2014

Insurance for payments on account at the time of the purchase of a property in Spain

purchase of property in SpainDear purchaser of a property in Spain.

Before over planning or proceeding with the purchase of a Spanish property under construction, it is important to acquire legal advice from a settled law firm in Spain and not to make any payments on account, as part of the purchase price, before ensuring that payments made to the vendor are assured by insurance or bank guaranty.

The Spanish “Law 57/1968 of 27 July, regarding the receipt of sums of money in advance for the construction and sale of homes”, later strengthened by the “Law 38/1999 of 5 November on Building Ordinances”, ruled that it is the obligation of developers to ensure repayment of the amounts received in advance as part of the purchase price (adding legal interest) from purchasers prior to the start of construction or during the same when the developer does not fulfil the obligation of delivering the dwelling in the agreed time. This guarantee to refund the sum of money received in advance is specified in an “individual insurance policy” or “individual bank guarantee” for each acquirer.

 

Form 340. Information tax form in Spain, statement on transactions in registry books.

Spanish tax form 340Spanish Tax form 340. The tax advisors of the multilingual law firm in Spain, Arcos & Lamers Asociados, have the pleasure to inform you that this form also determines those transactions that are subject to the special Spanish VAT payment scheme, the so known “Régimen especial de caja”.

In accordance with the Spanish order Hap/2215/2013, a new field is created to indicate that the business owner is subject to the economic activity carried out in Spain known as “Special VAT payment scheme”.

An important piece of information to be highlighted is that only the VAT taxpayer in Spain that is subject to the Scheme of monthly VAT refund is obliged to file the mentioned informative tax declaration form number 340.

As from when is the Special VAT payment scheme applicable? 

Business Angel, deduction of investment in new or recently established entities in Spain. Spanish tax Form 165.

Business angelThis new Spanish tax form is introduced by the law 14/2013 modifying article 105.02 of the personal income tax (I.R.P.F). Informative statement number 165. This new tax form contains information on the so-called “Business Angels”, referring to the deduction of investments in new or recently established entities in Spain.

The said Spanish law establishes a new obligation to provide information for the entities referred to in its article 68.01. This obligation concerns new or recently established entities whose shareholders of partners have requested the relevant certificate. The certificate, issued by the company, must be obtained, among other requisites, in order for the “Business Angels” to be entitled to deduct a rate of the investment.

 

Spanish law firm in Marbella informing on the “APOSTILLE CONVENTION”

APOSTILLE CONVENTIONOur English speaking law firm in Marbella is providing with this post a clarification on the so called “Apostille convention”.

Estimated foreign reader, if you desire to use in Spain a Public Document issued in your country, do not miss to read the following notes, which will be of your interest.

The Hague Convention of October 5 1961 abolishing the Requirement of Legalisation for Foreign Public Documents (“the Apostille treaty”) recognized through a legal instrument called “Apostille of the Hague “, the legal effect of any public document issued in one of the signatory countries to the said Convention.

The “Apostille of the Hague” considerably simplifies the legal process for those documents issued by the competent authorities designated by the States which are party to the convention, in order to be effective in Spain (or any other signatory country).

 

How do companies not resident in Spain pay tax on their income obtained from a property located in Spain? Special tax in Spain

spaanse belastingTax in Spain; Special Tax on Real Estate (IEBI), in Spanish Impuesto Especial sobre Bienes Inmuebles. Generally speaking, for non-Spanish resident companies without a permanent establishment the tax base is determined by their total income (without deduction of expenses) and the tax rate is shown in the table below, depending on the year of accrual.

Year of accrual 2007-2011 2012-2014
Tax base 24% 24,75%

 

We must not confuse this tax, which is charged at the national level, with the Rates (I.B.I), which is a local tax.

 

Necessary documentation for non-resident who wish to proceed with the Acceptance of Inheritance in Spain

A considerable number of doubts may arise in a very delicate moment when, in addition to taking decisions such as going to a professional Spanish law firm to assist you in the acceptance of your inheritance in Spain, you need to prepare the documentation required to proceed with the acceptance of the assets of the deceased in Spain.

Let us explain in a simple way the documentation that must be prepared to grant your acceptance of Spanish inheritance in front of a Notary Public.

First of all, you need your passport and NIE, for proper identification by the notary in Spain. Please note that all heirs must have a NIE (Non-resident Identification Number).

Secondly, it is necessary to provide the notary with the Death Certificate. If the deceased did out of Spain, this certificate must be provided with the Apostille of the Hague Convention and translated by a sworn translator.

 

How to invest in the outcome of an economic activity in Spain. “Participation on accounts contract.”

Spanish contactIn the event that you wish to invest in a business in Spain, there is formula you can use to contribute with financial support, receiving a rate of the profits or losses of a prosperous or adverse outcome of the activity, without becoming the shareholder of the Spanish company, in the proportion agreed by the parties. The legal frame in Spain is the so called “El contrato de cuentas en participación”.

This is a Spanish legally binding contract between the manager of the Spanish company, the party that is carrying out the commercial activity, and the party interested in contributing economically to such activity.

The object of the contract is constituted by the participation, in prosperous or adverse outcome, of the activity carried out by the Manager

The contract should include, among others, the following aspects:

1.- Identification of the commercial activity.

Invitation to visit updated version of the web site of Arcos & Lamers Asociados

web Arcos & Lamers AsociadosDear All,

Arcos & Lamers Asociados, SLP as part of its commitments to our existing clients takes great interest in the constant development and improvement of its resources.

These improvements range from encouraging and helping all its member of staff and professional to develop in their own areas by assisting regularly to courses and/or conferences among other lines of improvements to offer as well as improving our line of contact with our clients for which Arcos & Lamers created its own Website back in 2004 which has been constantly evolving and adapting to the necessities of our leading law firm in Spain and clients.