Monthly Newsletter - Arcos & Lamers Asociados

(English) Monthly Newsletter - Arcos & Lamers Asociados
Tax in Spain

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

Do 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.

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Spanish community of owners

Make sure that the Community fees are paid at the time of the purchase of a property in Spain

This is a relevant matter, as you could be in a situation where you have acquired a property, free of charges and encumbrances, but you have to settle the community fees of a property which are due prior to your acquisition of the same.

Spanish law on community fees

This matter is regulated by the Spanish Law 49/1960, of 21st July, of Horizontal Division, but it has recently been modified by  First Final Provision of the Law 8/2013, of 26th June, of Rehabilitation, Regeneration and Urban Renewal, in force since the 28th June 2013.

By virtue of this amendment, the credit in favour of the Community of Owners corresponding to quotas for the year in progress and the previous three years, has got a preferred character for the purposes of article 1923 of the Spanish Civil Code.

This means that, in the case of existence of debts of Community fees prior to the purchase and therefore corresponding to the vendor, the proportional part of the annuity in course and the three preceding years may be claimed to you, as a new owner of the property.

Who is liable to outstanding Spanish community fees?

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