Entrepreneurs and professionals who carry out an activity in Spain are under the obligation to issue an Spanish invoice and a copy of the same for the delivery of goods and services carried out and to keep a copy of the invoice issued.  They also have the obligation to issue an invoice for any advance payments received with the exception of exempt Intra-Community deliveries of goods.

In all cases the Entrepreneurs and professionals are under the obligation to issue an Spanish invoice when they fall under the following cases:

• When the recipient of the invoices is an entrepreneur or professional and is purchasing the goods or services in the course of his/her business.
• When the recipient of the service or good demands it in order to fulfil any tax obligation.
• Export of goods exempt of IVA(except duty free shops).
• Intra-Community deliveries exempt of IVA.
• When the recipient is a Public Administration or Legal entity not acting as a entrepreneur or professional.
• Certain deliveries of goods which require installation or assembly before being handed over to the buyer, as long as this has taken place in the territory where the tax is in force.
• Remote Sale and delivery of goods subject to special tax, as long as its understood that the same take place in the territory where the tax is in force.

Exceptions to the Duty to Bill

There are certain exceptions to the obligation to issue an invoice in Spain; this can fall under the following transactions:

• The transactions exempt of Spanish VAT (as stated in the Law 37/1992 dated 28th of December, article 20), with the exception of the transactions related to the healthcare and hospitalization , delivery of real estate and the delivery of goods exempt because they have not been able to deduct the Spanish Vat input.
• The transactions done by the entrepreneur or professional in the development of its activity which is subject to the Compensation Charge special scheme.  Any way, an invoice should always be issued in all the cases where the delivery of real estate when the purchaser has waived the IVA exemption (article 154 – IVA Law)
• On the development of the activity for which they are registered in the simplified IVA Tax system unless due to the high volume of the activity the amount taxable will be charged depending on the income volume.   Nevertheless, they should always issue an invoice for the transfer of the tangible and intangible fixed assets as stated on (article 123.1-B)  nº 3 IVA Law 37/1992.
• Those that are authorised by the Tax Management Department of the Tax Agency in relation to business sectors or specific business in order to avoid disturbances to the development of the normal business activity.
• Those transactions done by entrepreneurs or professionals which are under the  special tax regime of agriculture, livestock, fishing without prejudice their duty to issue receipts (agricultural receipt) for flat rate compensation if they in turn have purchased the goods or services to entrepreneurs or professionals subject to the same tax regime.  In all cases, an invoice should always be issued for the deliveries of real estate stated on Article129.1, second paragraph fro the IVA Law 37/1992.
• Financial & Insurance operations, regardless the nature of the receiver of the service even if they are entrepreneurs or professional exercising their activity with the exception of the transactions subject but not exempt localised in the Territory of Application of the Tax or in another member State.

Additional information on this subject can be found at our micro web www.accountantsinspain.com

 Do not hesitate to contact the leading English speaking accountants at our firm Arcos & Lamers Asociados for any tax, legal, labour and accountancy advice.

Sara Duarte, Accountant in Marbella, tax consultant in Spain!.

Marbella, October 2013

1. Original Death Certificate with Apostille of  Hague Convention.

2. Original Spanish Will. If not available, original Will in his country with Apostille of the Hague Convention, or alternatively certification signed by Notary, court or the applicable Public authority with Apostille.

3. Passport of all the heirs.

4. NIE numbers certifications (Spanish fiscal identification number) for all the heirs.

5. Passport and NIE number of the Deceased

6. Copy of Purchase Sale Title Deed granted for the acquisition of the property.

7. Copy of last paid rates receipt (IBI).

8. Statement of Spanish bank account showing balance at the time of the decease.

For additional information on Spanish inheritance procedures and the corresponding Inheritance tax in Spain you may see our micro  http://inheritanceinspain.eu/

Do not hesitate to contact the lawyers, accountants and tax advisers of our firm Arcos & Lamers Asociados for any inquiry you may have with regarding the inheritance procedure in Spain, Spanish Inheritance tax and/or any other Spanish legal and tax issues.

María Teresa Arcos, lawyer in Spain.

Wim Lamers, registered accountant (economist) in Spain.

Marbella, September, 2013.

Tickets disappeared and have been replaced by “simplified invoices”.

This has taken place pursuant to the Royal Decree 1619/2012, of 30th November, approving the Regulations that govern the obligations to issue invoices.

The simplified invoice is a document that has replaced the usual tickets, with some changes included. The simplified invoices  have less information than usual invoices.

Who has the right to issue simplified invoices?

Pursuant to article 4 of aforesaid Royal Decree 1619/2012, the obligation to issue an invoice may be replaced, in some cases, by a ticket up to the year 2012 and by the new simplified invoice as from the year2013 inany of the following cases:

Any business manager:

a. when the sum of the invoice is less than 400 Euros, VAT included.

b. when a corrected invoices of a previous one must be issued.

Companies with the following specific activities:

In the case of transactions described below, when the sum of the invoice does not exceed 3000 Euro, VAT included:

a. Retail sales

b. Street selling or service rendering

c. Door-to-door selling or service rendering

d. Transport of persons and their luggage

e. Catering companies and restaurants: restaurants, bars, cafeterias, chocolate shops and similar

f. Services rendered by dance clubs and nightclubs.

g. Telephone services for use of telephone boxes, or by means or telephone cards not allowing any identification of the user

h. Hairdresser’s and services rendered by beauty salons.

i. Use of Sport Facilities

j. Developing of pictures and services rendered by photographic studios

k. Car parks and parking lots

l. video renting

m. Laundries and dry cleaner’s

n. Use of toll motorways

o. Other services authorized by the Inland Revenue

Contents of the simplified invoice

Pursuant to article 6 of aforesaid Royal Decree 1619/2012, at least the following information shall be obligatory when issuing a simplified invoice:

• Series number of the invoice
• Number of the invoice
• Date of the invoice
• Date of the sales or service rendering
• Description of the sales or service rendering
• Applicable tax and the expression “VAT included”
• Total amount

In case the invoices is issued to a business manager or self-employed professional, the following information must be added:

• Cif number and address of the client
• Percentage of VAT

 Term and language in which the invoice must be issued

Pursuant to article 11 of aforesaid Royal Decree 1619/2012, the invoices must be issued at the time of delivery of the sales or services. When the invoice is issued to to a business manager or self-employed professional, the invoices must be issued before the 16^th of the month following the month in which the corresponding tax is accrued.

The invoices may be issued in any language. But the Inland Revenue may require a translation into Spanish.

Do not hesitate to contact your fiscal advisers and economists at Arcos & Lamers Asociados for any questions on your fiscal, labour, commercial, legal and accounting issues.

María Teresa Arcos, lawyer in Marbella.

Wim Lamers, economist in Marbella.

Marbella, August 2013.

Tax advisers in Spain. Tax consultants in Marbella.

The accountants and fiscal advisers of Arcos & Lamers Asociados are pleased to inform you that the Spanish Council of Ministers recently approved to send the Bill to boost e-invoices and set up an accounting register to Parliament. This will allow to put an end to unpaid invoices of suppliers and will expedite payment procedures.

With this future Spanish law, it is expected to reach the following objectives:

• To boost the use of e-invoices both in the public and private sector.
• Suppliers will be more protected in their commercial relations with the Public Administration.
• The Administration will have a major control of the invoices in relation to their accountancy.

It is expected that the implementation of the e-invoices will lead to an annual net savings of 51 million compared to the 2.3 million of savings when dealing with the usual invoices on paper.

What does this mean for suppliers?

Suppliers will present the invoices in a digital way on a general access site for e-invoices that each Government must possess.

This will reinforce the protection of suppliers because in this way, they can give proof of the date of the invoice for the purposes of interest in case of delay in the payments of the invoices. This will also expedite the invoices procedures and will make any follow-up easier.

All invoices will have a structured format which has not been determined yet.

As from 15^th January 2015, the e-invoice will be obligatory for those persons or entities that are obliged to the digital taxation system in accordance with the current tax regulation.

Nevertheless, Spanish Public Administrations may exclude from this obligation all invoices for an amount of less than five thousand Euros.

Do not hesitate to contact our professional lawyers and economists of our law firm Arcos & Lamers Asociados if you wish to obtain more information on the “E-invoices”, as well as for all your Spanish fiscal, accounting, tax and legal inquiries.

María Teresa Arcos, lawyer in Marbella.

Wim Lamers, Economist in Marbella.

Marbella, august 2013.

Company Tax in Spain

Company tax in Spain.

Accountant in Spain, Ms. Sara Duarte, has the pleasure to inform you on good news for companies in Spain regarding the possibilities to compensate losses from previous years. Spanish accountancy firm, Arcos & Lamers Asociados, your tax adviser and registered accountant in Spain, has the pleasure in informing you on the extension on compensations on losses from previous years.

As a new measure the deadline to offset tax losses from previous years has been extended in  Spain and will be implemented as from the tax period beginning January 1^st, 2012.

Paragraph II of Royal Decree-Law 20/12, Tax law in Spain, changes for tax years beginning on or after January 1st 2012.  The changes on the Decree states that the period will be expanded from 15 to 18 years, and this last one will be the maximum period for offsetting tax losses.

This establishes that the tax losses from previous years that have been declared may be offset against positive income for the period Tax to be completed in the 18 years immediately succeeding.

This change will include all types of entities including small companies.

Furthermore, it will allow the application of the new extended period of eighteen years the tax loss that were pending to be compensated at the beginning of the first tax period started from January 1st , 2012.

Temporary application limits compensation of tax losses from previous years.

The Royal Decree-Law 20/2012 modifies the Royal Decree-Law 9/2011 changing the temporally limit for 2012 & 2013 on the tax losses offset for entities with a turnover in excess of twenty million euros.

The limits are based on the net amount of the turnover during the twelve months preceding the date of commencing the tax period – the new limits are set as follows.

Arcos & Lamers Asociados, your accountant in Marbella, Málaga, Costa del Sol Spain.

Do not hesitate to contact this Multi-lingual law firm for any tax or legal enquiry. Your registered accountant (economist) in Marbella, Málaga,Costa del Sol, Spain.

Sara Duarte Davidson, accountant in Marbella

Marbella, July, 2013.

COMPANY TAX IN SPAIN

What does the Company Tax in Spain entitle?

The Spanish Constitution of December 27, 1978, provides in Article 31 that we all should contribute to the maintenance of public expenditure according to our economic capacity.

One of the most direct definition of “economic capacity” of a person is the  total income that is perceived, measured over a period of time. When income is obtained by individuals, the Spanish tax system does called Spanish Income Tax (IRPF- Impuesto sobre la renta de las personas físicas).

However, if the income is generated by a legal entity (company, association, foundation, etc..), than instead of Income tax we would call it  Company Tax (I.S. Impuestos sobre sociedades). In this sense, the company tax in Spain is complementary to the Income Tax of Individuals.

The company tax as a Spanish tax liability should be considered with a “direct”character and with a “personal” nature.

* Direct character because the company tax is a direct manifestation of the economic capacity of the taxpayer.

* Personal nature, because it takes into account particular circumstances of each taxpayer as it is calculated on the profit that appears of the Profit and Loss account of each legal entity.

We inform you that in general terms and for companies inSpainwith a turnover of more than 10 million Euros the following tax rates must be taken into account:

-          30% for the first 300,000 Euros profit.

-          35% for any further profits.

The Small and Medium Entities (so called PYMES)  that in general have a turnover of less than 10 million Euros and have less than 25 employees must take into account the following rates:

-          25% for the first 300,000 Euros profits

-          30% for any further profit

As per Royal Decree – Law 4/2013, of 22^ndFebruary, new measures have been approved for the entrepreneurs to stimulate growth and creation of employment in Spain.

Article 7. Incentives for newly incorporated companies in Spain.

For the purposes of the tax periods starting on 1^st January 2013, the following modifications, amongst others, must be taken into account:

1. The newly incorporated companies, set up from 1^st January 2013, that carry out economic activities, shall pay taxes in the first period in which the taxable amount is positive and in the following period, according to the scales below:

a) For a tax base between 0 and 300,000 Euros, at the rate of 15%.

b) For the remaining tax base, at the rate of 20%.

Of course, some limitations on the previous mentioned exceptional reduced Spanish company rates should be taken into account. Additional information on this subject can be found here.

Do not hesitate to contact one of the professionals of this leading law firm in Spain, Arcos & Lamers Asociados in the event you have any legal, tax, labour or accountancy inquiry.

María Teresa Arcos, lawyer in Spain.

Wim Lamers, Economists in Spain.

Marbella, June, 2013

Income tax in Spain

Tax adviser in Spain informing on Spanish Income Tax.

The initial name of the Spanish income tax was “general contribution to Spanish income” (contribución general sobre la renta) , which was approved, long time ago, by the law of November 20, 1932, under the government of Mr. Manuel Azaña and as Minister of Finance Mr. James Carner Romeu. The law, which took effect on January 1, 1933, set a minimum exemption of 100,000 pesetas and tariffs from 1 to 7.70%.

By Act of November 14, 1935, as Minister of Finance Joaquin Chapaprieta, the free threshold was lowered to 80,000 pesetas and maximum rates were increased upto 11%, maintaining the minimum 1%. Several relevant amendments took place between 1940 and 1960. Central Spanish State reform in a decentralized state in the 90s resulted in more changes.

During the last decade additional changes have been introduced in the Spanish tax law leaving the following scales applicable for year 2012. With other words, the Income Tax declaration to be presented in 2013 that entitles income information obtained during 2012 will be taking into account the following scales:

As an example, a taxpayer, tax resident in Andalucía, with a gross income from work of  Euros 60,000 will mean a payment of Euros 9458.31 Euros taxed by the general national scale, Euros.1.314, 51 as per the above mentioned additional scale plus Euros. 9.458.31 as by the Andalucian regional scale, making a total of Euros. 20.231.13 with an average rate of 33.72%. Kindly note that this data is obtained regardless of the family status and is for informative purposes only as no deductions have been taken into account such as those generated at the time of contributions to Spanish pensions plans, contributions to Social security, etc..

Do not hesitate to contact the multi-lingual lawyers, accountants and tax advisers in Spain of Arcos & Lamers Asociados, specialists in the Spanish tax system, for any legal, tax and labour inquiry.

María Teresa Arcos, registered lawyer in Spain.

Wim Lamers, registered accountant (economist) in Spain.

Arcos & Lamers Asociados, Spanish tax lawyers in Marbella, tax lawyers in Spain, income tax in spain specialists, accountants in Spain, accountants in Marbella, tax advisers in Spain, tax advisers in Marbella.

Marbella, June, 2013.

Income tax in Spain

INCOME TAX FISCAL RESIDENTS IN SPAIN.

Pursuant to article 96 of the Spanish Income Tax law and article 61 of the regulation (reglamento) of the mentioned law, the following persons are required to submit the Income tax declaration of 2012 in Spain.

a) Taxpayers who have obtained an income in the year exceeding the amounts for each class or source that are highlighted below.

b) Those taxpayers in Spain who, regardless of the amount and nature or source of the income earned, would be entitled to a deduction for investment in there prime home, special savings account for the purchase of their first home, international double taxation, or have made contributions to individuals with disabilities, pension plans, insured pension plans, corporate pension plans, etc.

c) Taxpayers in Spain who are required to file the Spanish income tax and apply for the refund arising from the Income Tax regulation to which they are entitled if proceeds.

d) Taxpayers who are not required to file their Spanish Income Tax due to the amount and nature or source of their income earned during the year, but are applying for the refund arising from the Income Tax regulation in Spain.

Who is not required to file Spanish Income Tax at the Inland Revenue?

1. Taxpayers whose income is derived solely from the following sources, provided they do not exceed any of the limits mentioned in each case:

A) Gross salary out of work (including, among others, retirement pensions, including those from abroad, as well as non-exempt alimony and annuities for alimony) for an amount not exceeding:

• Euros 22,000 per year, generally.
• Euros 11,200 per year in the following cases:

a) When income is paid by more than one employer.

However, the limit is Euros 22,000 per year in the following cases:
1 ° where, the income is generated by more than one employer, the sum of the amount received from the second and other employers may not exceed the total amount of 1.500 Euros.

B) Income from immovable capital (non-exempt dividends, interest on accounts, deposits or fixed income securities, etc.) and capital gains (gains from reimbursement on shares in investment funds, prizes for participation in competitions or lottery, etc.), provided that the income has been subject to advanced tax payments and the overall amount does not exceed the amount of 1,600 euros per year.

C) Deemed Income Tax, income from immovable capital not subject to advanced tax payments arising from treasury bonds and subsidies for the acquisition of subsidized housing with a limit of 1,000 Euros per year.

For any legal or tax inquiry, do not hesitate to contact the multi-lingual tax lawyers of Arcos & Lamers Asociados, your Registered Accountants (economists), lawyers and tax advisers in Spain.

María Teresa Arcos, Lawyer in Spain.

Wim Lamers, Registered Accountant (Economist) in Spain.

Arcos & Lamers Asociados:Accountants in Spain, tax advisers in Spain, Spanish tax specialists, Income tax specialists in Spain, tax lawyers in Spain, Tax law firm in Spain.

Marbella, May, 2013

Income Tax in Spain

Due to many inquiries that the tax lawyers of our firm receive every year, the multi-lingual tax advisers of Arcos & Lamers Asociados, your accountant and tax adviser in Spain, would like to lay out the corresponding deadlines applicable on Spanish Income Tax.

This year 2013, the possible “online” submission of the corresponding Income tax and Wealth Tax for Tax residents in Spain started on 24th April.

26/06/2013 will be the last day for filing the Income Tax form stating an automatic direct debit on Spanish personal bank accounts.

28/06/2013 will be the last day to request “customer service” meetings at the corresponding Inland Revenue in Spain.
On the 01/07/2013 the Spanish Income tax campaign ends for 2012. Last day to file Income Tax returns 2012 and Spanish Wealth tax 2012.

The personal Income tax in Spain is considered as a direct, personal, subjective, progressive and analytical tax type.

The Income tax in Spain is straight forward and is directly calculated on the Income of the taxpayer, personal as the tax payer is liable himself and not the asset/s, subjective because it takes into account the physical and or personal condition of the tax payer; progressive, in the sense that a higher income will be taxed in a higher proportion; analytical, as the Spanish Income tax does consider different types of Income and does tax each different type of income in a different way.

Do not hesitate to contact the multi-lingual tax lawyers of Arcos & Lamers Asociados, your Registered Accountants (economists), lawyers and tax advisers in Spain specialized in the Spanish Tax system.

María Teresa Arcos, Lawyer in Spain.

Wim Lamers, Registered Accountant (Economist) in Spain.

Marbella, May, 2013

Accountant in Spain

Accountants in Spain.

Spanish multi-lingual proactive law firm, Arcos & Lamers Asociados, has recently launched, in addition to our weekly posts at our blog, a new micro web under the title “Accountants in Spain” providing deep going information on the Spanish Tax system, Spanish accountancy rules and tax advice that our firm provides to Spanish and north European communities, individuals and companies in Spain. Please find below a summary of the different areas we have taken into account providing answers to inquiries that our firm receives on a daily basis.

• Information to learn more on Spanish tax obligations to take into account after of constitution of your new company or on the accountancy obligations that your existing company should take care of. Additional information may be found here with regards to the Spanish fiscal system as well the accountancy services rendered by our firm.

• Information regarding Spanish company tax, Company Tax rates applicable for different types of companies.

• Specific information on reductions on Personal Income Tax in Spain for whom wish to start an activity in Spain.

• Information to take into account when your company is unable to collect debts from its clients as from an accountancy and tax point of view.

• Other services.

The professional team of Arcos & Lamers Asociados has an extensive knowledge on legal and tax issues and disposes of the material resources and the hands-on experience to attend to all your needs in accountancy, tax and legal matters in Spain

Do not hesitate to contact one of the registered professionals of this multi lingual law firm in Spain!.

María Teresa Arcos, lawyer in Spain

Wim Lamers, economist in Spain.

Marbella, May, 2013