A non resident in Spain might at some point (due to a specific transaction) be requested by the authorities, such as Spanish Inland Revenue, notary, etc, to demonstrate that they are in fact Non Resident in Spain.  In order to do so, you will need to request and obtain a certificate issued by the Tax authorities (Inland Revenue) from your country of residency stating that you are resident on that country.

In the event that you have been a Resident in Spain and you move your tax residency to another country, you will need to unsubscribe from the Spanish Tax system (Inland Revenue in Spain) and, in order to do so, you will need to present a certificate from your new country of Residency as stated above.  In other words, if you are presently fiscal resident in Spain and you wish to become fiscal resident in another EU country you need to proceed with the following steps:

• Register yourself at the corresponding Town Hall of the other EU country as resident. In some EU countries you would need to inform the corresponding Inland Revenue that you have become fiscal resident showing the corresponding certificate issued by the local Town Hall.
• Once completed the above, you should travel again to Spain, contact the local SpanishTown Hall to unsubscribe from the same.
• Fulfil and present a Spanish tax declaration at the Spanish Inland Revenue attaching original and translated certification mentioned in the first point.
• Approach the Spanish police station in order and return the corresponding “resident certificate” cancelling your Spanish residency.
• Inform all financial entities, that your fiscal residency and address has been changed.

Of course, the process above mentioned may be considered as a hassle but using the services of the Multilingual law firm of Arcos & Lamers Asociados, your accountants in Marbella and tax advisors in Spain,  will ease the whole process for you.

Please bear in mind, that if you have already been confirmed as resident in Spain for more than 183 days on the tax period where the change of residency has taken place you will still be considered and liable to declare your tax obligations in Spain for that year.

There are other situations where you might be requested to accredit your non residency status this could be when signing a transaction before a Public Notary in Spain such a purchase or sale of a real estate ….

The period of validity of those certificates is of one year.

Do not hesitate to contact now one of the professional and registered lawyers and accountants of Arcos & Lamers Asociados.

Sara Duarte Davidson, accountant in Marbella.

Marbella, October 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.

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.

Inheritance in Spain

Besides our this general web site, our multi-lingual proactive law firm would like to invite you to visit the just launched micro web “Inheritace in Spain” by Arcos & Lamers Asociados.

At this new web we are providing deep going information on the following subjects:

1)      Spanish Inheritance procedure.

Here you will find a guideline of the steps to take into account at the legal procedure of an Inheritance in Spain. In addition, information on the Spanish law is provided.

2)      Inheritance tax in Spain, examples.

Information on Spanish Inheritance Tax is provided, The provided Inheritance tax scale would be applicable for non tax residents in Spain and may vary in the event that the heirs are fiscal resident in Spain.

3)      whether the national or regional law is applicable.

The collection of the Spanish Inheritance tax and the right to produce additional legislation to the National Inheritance law in Spain have been transferred to the different Regional Inland Revenue’s as per law 21/2001 of 27th December.  Here you will find the explanations on which law is applicable.

4)      information on drafting a Will in Spain, among others.

How to insure your love ones are protected in the event of the death of a relative? Arcos y Lamers Asociados, Spanish law firm settled in Marbella specialized in Spanish Inheritance procedures, recommends in any case, the granting of your Will in Spain before a Spanish Notary relating to your assets located in Spain, since it will mean in the future, a smooth streamlining in the procedure for acceptance and receiving the inheritance in Spain by the appointed heirs.

The English speaking accountants and tax lawyers of this law firm in Spain are always searching to find the best solution for its clients, taking advantage of the newest state of the art technology

Do not hesitate to contact this Spanish law firm for all your Spanish legal and tax enquiries.

María Teresa Arcos, lawyer in Marbella

Wim Lamers, registered accountant (economist) in Spain.

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

COMPANY TAX IN SPAIN

It took a long time but the good news for companies in Spain has appeared!  The Multilingual Spanish registered accountants (economists) and tax advisers in Marbella of Arcos & Lamers Asociados have the pleasure to inform you on a relevant reduction on Spanish Company Tax down to 15% as per publication of Spanish Law 04/2013 of 22^nd February, which is meant to improve and increase Spanish economy. Specifically chapter two of the mentioned law is including relevant reductions in the Spanish tax system. Of course, limitations on these reductions have been mentioned as well.

Are you willing to start an activity in Spain! As from 01.01.2013 you should bare in mind the following amendments at the Spanish tax system. Contact the registered tax lawyers in Spain and accountants in Marbella of Arcos & Lamers Asociados now for any additional information or clarifications!.

Article 7. Incentives for Spanish companies constituted as from 01.01.2013.

As from financial years starting from 01.01.2013 the following changes, among others, should be taken into account.

1) Companies constituted as on or after the 01.01.2013 which carry out economical activities and generate profits will be enjoying a reduced company tax rate for their first and second financial year.

A) 15% Company Tax on the first 300.000 Euros profit.

B) 20% Company tax on profit above 300.000 Euros.

Kindly note that this means a relevant reduction as in general lines the Spanish company Tax is calculated as per below mentioned Spanish Tax rules:

Spanish companies:

• For companies with turn-over more than 10 million euros, the general rates are the following:

-          30%. for the first 300.000 euros profit.

-          35% for the following ones.

• For companies with turn-over less than 10 million euros, with less than 25 employees, the general rates are the following:

-          25%. for the first 300.000 euros profit.

-          30% for the following ones

Conclusion: When you start your new activity in a company constituted as from 2013 you will enjoy a reduced rate company tax of 15%-20%. Congratulations!

2. As per this specific law, it is understood that the reductions on Spanish Company Tax are not applicable when:

A) The economical activity in Spain has been previously carried out by arm-length individuals and/or companies who have transmitted the activity to the new company.

B) When the activity has been carried out, in between, 1 year previously to the constitution of the new company by an individual or company share holder (over 50%), directly or indirectly of the new Spanish company.

3. The mentioned reduction of the company tax in Spainwould not be applicable to company’s part of a group.

The professional team ofArcos & Lamers Asociadoshas the legal/fiscal knowledge, resources, experience and skills to help clients deal with any matters related to the services listed below.

• CIVIL LEGAL AND EXTRAJUDICIAL PROCEEDINGS
• PURCHASE & SALE OF REAL ESTATE
• TAX LAW: TAX AND ACCOUNTING ADVICE
• CORPORATE LAW, TRADE COMPANIES
• INHERITANCE, WILLS AND SUCCESSION
• SPANISH EMPLOYMENT ADVICE
• TRADEMARKS AND PATENTS
• CRIMINAL LAW
• BANKRUPTCY PROCEEDINGS
• LEGAL AND FISCAL ADVICE IN GENERAL
• OTHER SERVICES

Do you wish to immigrate to Spain, start a new activity, and/or constitute a company in Spain? Do you already own a business in Spainand you wish to obtain a second opinion on your accountancy books? Are you seeking for and updated multilingual registered accountant in Spain that speaks your own language? Contact now Arcos & Lamers Asociados!. Your accountants in Marbella, Costa del Sol, Spain!.

Wim Lamers, Economist in Spain.

María Teresa Arcos, Lawyer in Spain.

Marbella, Abril, 2013.

Wealth tax in Spain

As previously informed by this Spanish law firm and accountants in Marbella, Arcos & Lamers Asociados, wealth tax in Spain had been restored temporarily only for the years 2011 and 2012. Nevertheless since last 28^th December 2012 several new tax measures appeared aiming for consolidation of public finances and the promotion of economic activity in Spain. One of the measurements is the extension for 2013 of the Wealth Tax in Spain. As per present Spanish law it again introduces a general exemption of 100% as from 1^st January 2014, which means that the Wealth tax in Spain would stop to be due, as per present law, in 2015.

Arcos & Lamers Asociados, Spanish lawyers, registered accountants and tax advisers are pleased to inform you about your tax liabilities in Spain, to grant the corresponding tax forms, whether you are resident, non resident, an individual or company. Do not hesitate to contact this multi-lingual Spanish law firm at any time and all your tax and legal matters in Spain will be treated within the below mentioned rules of conduct:

 Efficiency & Effectiveness

Integrity & Security

Honesty

Promptness

Independence

It is to recall that the submission of the corresponding Spanish wealth tax declaration is compulsory in the event that the gross assets you own are worth over 2.000.000 Euros. It is also relevant to mention that the corresponding regional Inland Revenue has enough power to introduce any increase of the wealth tax rates or increase / decrease of the deductions, bonuses, etc…but in case of non-resident taxpayers, they are governed by the national fixed Spanish tax rate.

More information on the mentioned wealth tax inSpaincan be found here:

1)      http://www.arcos-lamersasociados.com/138/did-you-know-that-during-the-years-2012-and-2013-wealth-tax-in-spain-has-been-reactivated/

2)      http://www.arcos-lamersasociados.com/714/spanish-tax-adviser-informing-on-the-history-of-wealth-tax-in-spain/

For any clarification, information or advice contact now our lawyers, accountants, tax adviser, business advisers and labour advisers ofArcos & Lamers Asociados, your law firm inSpain!

Marbella, March, 2013.

Wim Lamers, Maite Arcos

This is the slogan of Arcos & Lamers Asociados, your Lawyer, Solicitor and Registered accountant in Marbella, Costa del Sol Spain: short, concise and specific. It makes the reader think, whether they are just looking at it, reading it or talking about it to another person.

The slogan states a point without expressing it in detail. It reflects the spirit of our firm of lawyers and tax advisers, Arcos & Lamers Asociados, as it transmits trust and security.

Why should you trust Arcos & Lamers Asociados with your legal, tax, labour, commercial and accounting issues?

There are two simple reasons:

1º/ Because “Giving reasons” means that Arcos & Lamers Asociados already have a professional stance, a prestige, and a long-standing professional career path of over 10 years throughout which an outstanding base of knowledge has been developed. Our national and international clients are more than familiar with the speed, efficiency, security and professionalism with which we deal with our clients’ issues as they recommend us to others by saying that we are expeditious and professional. We offer ourselves to the market with an expertise that is fully recognised by the public who therefore feel confident in using us and we are giving them important reasons to do so.

2º/ The second reason we have chosen “Giving reasons” as our slogan is precisely because of our professionalism. Clients of Arcos & Lamers Asociados are always kept up to date with the process of their issues. Plus, all of this in four languages. Therefore, our clients feel at ease as they are always kept in-the-know at Arcos & Lamers Asociados. Through the blog of our law firm inSpain, we offer them weekly news updates on legal, fiscal, accounting, labour matters regarding the Spanish legislation.

This means that we give explanations or reasons, which justify our work. This is called client follow-up: after sales services, continuous service over time, giving reasons at all times to our clients.

No not hesitate to contact now one of the professionals of Arcos & Lamers Asociados, your solicitor and lawyer in Spain.

Marbella, March, 2013

MULTIMEDIA SECTION AND LITIGATION SERVICES AT ARCOS & LAMERSASOCIADOS AND CHANGES OF SPANISH TAX LEGAL LAWS.

Our firm, always providing the best service to our clients and as a confirmation that we are in constant adaptation to new technologies, is pleased to invite you to visit the recent created multimedia section of or web site where you can view a brand new original presentation on litigation services.

Dutch: http://www.arcos-lamersasociados.com/nl/multimedia/
English: http://www.arcos-lamersasociados.com/multimedia/
French: http://www.arcos-lamersasociados.com/fr/multimedia/
Spanish: http://www.arcos-lamersasociados.com/es/multimedia/

In addition do not forget to follow our weekly posts that are appearing at our blog as at the same post are appearing in 4 different languages informing on relevant Spanish Tax legislation to take into account:

For example, the new reporting obligations on assets hold out of Spain: http://www.arcos-lamersasociados.com/983/accountant-in-spain-informing-on-spanish-tax-delaration-720/  Do not hesitate to contact one of the professional ofArcos & Lamers Asociados if you believe it applies to you, professionally and/or personally wise.

Increase of Capital Gain Tax: http://www.arcos-lamersasociados.com/943/spanish-capital-gain-tax-increase-for-the-year-2013/

Less tax deductions at Spanish Income Tax: http://www.arcos-lamersasociados.com/998/no-more-tax-reduction-for-investment-in-a-permanent-residence-in-spain/

Major developments with implication in Social matters

Tax Fraud and Social Security

• Article 305 of the criminal law: Fraud to the Inland Revenue: Fraud to the Inland Revenue for the non payment of taxes, amounts retained o which should have been retained or payments on account, as long as the amount exceeds one hundred and twenty thousands €uros.  Imprisonment from one to five years and fines up to six times the amount due.

• Article 307 of the criminal law: Fraud to the Social Security: Fraud to the Social Security for the non payments of Social Security Contributions, obtaining benefits without the right to do so, as long as the amount exceeds fifty thousands €uros.  Imprisonment from one to five years and fines up to six times the amount due.

Our firm has learned that on the latest Labour inspections many companies which had debts towards the Social Security, regardless the amount, have initially been fined with 3.000,00 €uros.

Please do not hesitate to contact us in the event you need any additional information or clarification.

Arcos & Lamers Asociados, lawyers in Spain, Solicitors in Spain, Tax advisers in Spain, Accountants in Spain.

As a result of the tax law adaptation there will be a new obligation that will require declaring specific information regarding all assets & rights situated abroad including:

• Information about accounts in financial institutions located abroad.
• Information about securities, rights, insurance and annuities deposited, managed or obtained abroad.
• Information of ownership or rights to real estate located abroad.

Who is required to submit these information?

All the information required will be submitted on a Spanish tax declaration with number 720 “Informative declaration of assets & rights situated abroad” by individuals and entities resident on Spanish territory, Non resident, individual or/and entities but with permanent establishments in the Spanish territory as long as they belong to the following groups:

Holder, representative, authorised, beneficiary, individual or entity with powers of disposal or real beneficial owner.

The obligation to file this tax declaration at Spanish Inland Revenue by any of the above will be condition when the sum of one of the three groups (accounts, bonds …, real estate) reaches a total of 50.000,00 Euros. In this case it will be required to declare all assets and rights held abroad. In order words there will be no need to declare the mentioned Spanish tax return, form number 720, as long as none of the three groups reaches the total amount of 50.000,00 Euros.

It will be considered a tax infringement to present the declaration out of date, incomplete, inaccurate or to state any false information. The tax penalties imposed for any of the above or the failure to comply with the obligation will be economically very high. For additional information do not hesitate to contact the leading multi-lingual Spanish law firm Arcos & Lamers Asociados!

When & how are we required to present these information?

The tax form will be required to be presented between January and March of the following year that is being declared. As an exception for the tax period 2012 this will be between February and April 2013.

The tax form must be presented by Internet.

Ms. Sara Duarte, accountant in Spain of Arcos & Lamers Asociados, law firm in Marbella has been pleased to inform you on the above.

Contact now the registered Spanish Accountants and lawyers of Arcos & Lamers Asociados in the event you need additional information or clarification on this special tax declaration in Spain, form number 720.

Arcos & Lamers Asociados, accountants in Spain, lawyers in Spain, solicitors in Spain, Tax advisers in Spain, labour advisers in Spain, company advisers in Spain.

Marbella, February 2013