Reductions on Spanish with-holding Tax

tax in marbellaSpanish tax advisers in Marbella have the pleasure to announce reductions into the Spanish with-holding tax. The so known “Retenciones e ingresos a cuenta del IRPF”.

Spanish withholding tax professional activity.

The with-holding tax in Spain to be applied on the net amount of an invoice issued by a self employed performing a professional activity for the tax year 2015 has been reduced from 21% to 19%.  Therefore, from the 01.01.2015 all the invoices issued by professionals subject to the general rule should apply this new reduced rate.  It has also been approved that for the tax year 2016 will be reduced again down to 18%.

Reduced withholding tax rate in Spain.

Rental income from Real Estates (properties in Spain)

rental on Spanish properties


Spanish tax advisers in Marbella have the pleasure to set out below an introduction to the Spanish tax system concerning the Income you may generate out of properties located in Spain

Description of Inland Revenue In Spain: Earnings deriving from the lease, or the creation of rights or powers of use or enjoyment, of rustic and urban Spanish property, or of rights “in rem” over these properties, which are owned by the taxpayer and are not used for economic activities by the taxpayer, shall be considered earnings from real estate.

  Income derived from the lease of real property is considered earnings from real estate, except if the two following circumstances occur simultaneously:

6 important changes in the Law regarding the Spanish Value Added Tax

VAT in SpainReforms of the laws 26, 27 and 28/2014    VAT:

 VAT in Spain. The fiscal advisors of our law firm in Spain, Arcos & Lamers Asociados, your Spanish accountant and lawyer in Marbella under one roof, have the pleasure to inform you about relevant changes in the most complex tax in Spain. The so known, Impuesto Sobre el Valor Añadido, IVA. The below mentioned information is relevant in the event that you  wish to set up a company or you already are running a business In Spain.

  1. Regarding the exemptions of article 20, there will be a new version for the cases of non-profit entities. The exemption of notary fees in financial transactions will be eliminated. So these entities will become subject thereto. And in the case of sales of plots where construction is not allowed, these sales will not only be exempt for the promoter but also for any businessman or professional that is not a promoter.

Changes at the Income Tax in Spain 2015

 Income Tax in Spain

 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.

Shareholders and Minutes Book in Spain:  telemetric legalization

shareholder bookAny company registered at the corresponding Spanish Mercantile Registers must take into account a several books under the applicable legal provisions. Among these books, we focus on the Spanish “Minute Book” and “Shareholder and Partner Book” .

The Spanish law 14/2013 of support for entrepreneurs and internationalization, established mode of carrying out the legalization of binding books by commercial companies. Thus, Article 18 of the mentioned Lay provides that:

– All books that necessarily must be kept by the entrepreneur under the applicable laws, including minute books of boards and other sites of managements, or the shareholders books and registered shares, will be telepathically legalized at the Mercantile Register after its full completion in electronic means and no later than four months from the date of the financial year.

New Arcos & Lamers Asociados brochure

logo arcos lamresOur history

With an exemplary combination of solid professional backgrounds, María Teresa Arcos and Wim Lamers decided in 2003 to set up the law firm Arcos & Lamers Asociados.

Our law and accountancy firm in Marbella was born out of the idea and intention to create a firm where we could develop our professional capacities with the same honesty and efficiency that has defined our personal lives.

We knew we faced a very important decision in our lives to found this firm, but we knew our professional backgrounds, years of experience, and our ability to adapt to new situations were the ingredients for success. Our corporate objective is to deliver cutting-edge advisory services to individuals, entrepreneurs, companies and institutions.

Therefore, our team continually invests in training that permits us to take on even the most complex cases. When handling a case, we constantly study legislation and case law to analyse all possible situations in order to arrive at the best possible solutions for our clients.

Throughout the process, we are in constant communication with our clients in order to best understand their requirements and needs.

Our firm, Arcos & Lamers Asociados, has grown into a reference for many of our clients who invest their confidence in us thanks to our corporate values of experience, excellence, dedication and teamwork.

Permanent Residency in two Countries

Spanish tax residentAs a continuation of previous articles of Arcos and Lamers Asociados relating to the fiscal residence in Spain, we proceed to analyze what happens when a person is resident in both States.

We are faced with a situation where should be avoided that, under the applicable rules, someone can be considered, for tax purposes, as  resident in the two States.

To avoid that, it is necessary to follow the Agreement signed by the two Countries. We can say in general that, under the rules of these conventions, the person will be resident:

1.- At the State where he has a permanent home. If you have a permanent home in both States, you will be resident of the one where you have closer personal and economic relations.

Capital gains tax in Spain. The keys to the fiscal reform 2015

Capital gain Tax in spain

Capital gain Tax in spain

For the  purposes of informing on the main novelties introduced in the Law 26/2014, which amends the Income Tax Law and the Non Resident Income Ta Law in Spain,  we set out below the following points to be taken into account,  for the calculation of the capital gains tax in Spain arising in the transfer of real estate property.


  1. Elimination of monetary correction coefficients in Spain.

The application of the coefficients of update, to correct the acquisition value of the property based on the date of purchase, has been removed.


2.- The coefficient of “abatement” (abatimiento) are maintained.

In order to apply these reduction coefficients, it is stated a maximum sale price of the property in Spain of 400,000 €.

This limitation of 400,000 € applies, not to the sale of each asset individually, but all of them, regardless of the sale of each one of them occurring at different times.

3.-Exemption of capital gain tax in Spain for individuals over 65 years.

Judgment Court of Justice of the Europan Union and adaptation of the Spanish Inheritance and Donation Tax Law, for non residents

erfrecht in spanjeThe Judgment of the Court of Justice of the European Union dated 3rd September 2014, Case C-127/12 ( states contrary to the principle of free movement of capital, the different tax treatment of donations and inheritance between inheritors and donees residents and non-residents in Spain, between grantors residents and non-residents in Spain and between donations and similar provisions of Real Estates situated in Spain and outside.

The judgment does not refer to the powers attributed to the Autonomous Communities (generally with a more favourable fiscal impact to the taxpayer), but rather to national legislation which was applicable to non-residents in this matter.

By Spanish Law 26/2014 of 27 November (published in the Official Gazette of 28th November  2014), is adjusted the legislation of Inheritance and Donations (Law 29/1989) to the premises stated in the Court of Justice of the European Union.

Tax exempt income but subject to the Personal Income Tax in Spain

Tax in SpainDo you work for a foreign company although you are tax resident in Spain due to you family situation? Then, be aware that you can obtain an exemption in your Personal Income Tax Return (in Spanish, the well-known IRPF) provided that you at least comply with these two conditions:

1º That you carry out those works for a company or entity which is not resident in Spain or has a permanent establishment abroad.

2º That on the territory where the works are carried out, an identical or analogue tax to the aforesaid tax is being applied, and that it is not a country of territory that has been qualified as tax haven according to the regulations.

This article might be of special interest to you if you are for example a fiscal resident in Spain due to presumption of residence when your minor children live in Spain or your husband or wife is pilot and works for a foreign airline company.