(English) Monthly Newsletter - Arcos & Lamers Asociados

How to avoid subsidiary liability of tax debts of a company in bankruptcy in Spain?

In our previous article published by this multilingual speaking Spanish law firm and tax advisors in Marbella, we made it clear that in order to avoid the Spanish tax liabilities of your suppliers, it is necessary to not only pay the corresponding original invoice but also to require a certificate issued by the Spanish Tax Office (Inland Revenue in Spain) that certifies that the supplier is up to date in his tax obligations in Spain.

But … how about the tax liability in case the supplier is in a bankruptcy procedure in Spain and generally has not been able yet to comply with his tax liabilities in Spain?

According to certain statistics consulted by this Spanish law firm in Marbella, any payer generally avoids to directly contract the services of companies in a bankruptcy procedure which makes it increasingly difficult for the company to get out of its delicate situation.

Profit Or Loss Keys Showing Returns For Internet Business

Are the financial expenses deductible from the Corporation Tax in Spain?

Company tax in Spain. In order to consider whether the financial expenses are deductible from the Corporation Tax in Spain, we have to take into account a double-sided limitation. The company tax in Spain is the so known Impuesto sobre Sociedades.

The net financial expenses are deductible with a limit of 30% of the trading profit of the fiscal year. Accrued interest on personal and mortgage loans are understood to be financial expenses.

Taking into account such limitation, the following expenses shall NOT be considered as deductible in general terms:

Extra charges for extemporaneous tax returns in Spain without prior demand for payment by the tax office

Tax returns in Spain: “I’ve not filed the corporation tax return in Spain on time! What may the consequences be?” Or questions such as, “I have just made a return on property transfer tax in Spain and I have seen I made a flagrant mistake!” What can I do?” These are some of the consultations our clients daily make to the lawyers and tax advisers of our law firm in Marbella, Malaga.

The consequences of not having filed a Spanish tax declaration within the due period of time or of having filed an complementary tax return in Spain where you have to settle some additional tax, are regulated in article 27 of the Spanish General Tax Law under the title “Extra charges for extemporaneous tax returns without prior requirement of the tax office in Spain”.

1.- These extra charges mean additional payments that taxpayers need to pay as a consequence of having filed self-assessments or extemporaneous returns without prior demand for payment of the Spanish tax office.

Spanish Holiday rentals as Homes for touristic use in Andalusia. Let’s take a look into the future

Are you the owner of a property in Malaga, Benalmadena, Fuengirola, Mijas, Marbella, Estepona, Sotogrande or any other town along the Mediterranean coast and you rent it out or you are thinking of renting it out as a holiday home?

Then you might have heard of rumours that there is a law in Spain that obliges the owner to comply with a series of requirements and some additional measures in order to rent it out.

In fact this Regional - Spanish law does not exist yet, but the legislative bodies of Andalusia’s regional government, or the so known “Junta de Andalucía”, is studying and debating the draft regulations. The definitive version and subsequent approval is expected to be ready by the end of 2014.

Interview with José Manuel Cerviño Sosa at Canal Sur Radio on the topic of rentals in Spain

Click here to view media.

English speaking Spanish Lawyer of the team of law firm Arcos & Lamers Asociados in Marbella.

- There are some essential topics in the rental-housing act in Spain, although more related to long-term rentals than seasonal rentals. What are the most frequent asked questions in relation to tenancy?

At the office, we get to deal with two main topics daily. The first one is related to the contracts, that is to say, the way contracts should be negotiated and drawn up. This is dealt with case per case. On the other hand, we deal with what is known as contractual crisis. In other words, when for some reason, mostly because of non-payment of the rent, the owner or landlord tries to repossess the property by means of eviction procedures.

- And what is the situation at the time? Why does the economic crisis have so much influence on this kind of problems?

Of course it has a lot of influence. Crisis has influenced financial possibilities of tenants but also of landlords. Tenants because of their capacity related to their proportion expenses and income and landlords because most of them had a mortgage on the property they rent out to finance it. In this way, they tried to make some savings. Of course the economic crisis has had an influence on the tenancy possibilities.

- The biggest problem is undoubtedly the fear of many landlords to rent out their properties to people who cannot pay anymore after a while. I understand that in first instance one has to try to come to an agreement between both parties. In case of eviction, a court case must be held. But what can we do to prevent this? The best thing to do is to take some preventive measures, no?