By Sara Duarte, Accountant in Marbella, tax advisor in Spain.
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: Read more »
FISCAL RESIDENT IN SPAIN.
The tax consultants of the Spanish law firm, Arcos & Lamers Asociados, wish to point out an important detail concerning the Income tax in Spain mentioned at the law 16/2012, of 27th December, establishing several measures aimed to consolidating public finances. This change does affect to the Spanish Income tax rules applicable to financial year 2013 that should be declared in 2014.
Elimination of the deduction for home investment.
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?
This time, Arcos & Lamers Asociados has the pleasure to inform you on another relevant reduction at the Spanish Tax System, this time, specifically at the Income Tax in Spain for tax residents who start to carry out an economical activity as from 01.01.2013 (I.R.P.F, Impuesto sobre la renta de las personas físicas) as mentioned at Spanish Law 04/2013 of 22nd February, which is meant to improve and increase Spanish economy.
Specifically chapter two of the mentioned law is including relevant reductions at the Spanish Income Tax. Of course, limitations on these reductions have been included as well. The reduction entitles a relevant decrease of 20% of the positive income generated. Congratulations!
Limitations to the mentioned reductions:
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 22nd 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!. Read more »
If you are thinking in opening a branch of your Company in Spain, please note that you should take into account the following actions to be taken. María Teresa Arcos, English speaking leading lawyer in Spain is kindly informing you:
1).- The Directors of your Company must approve an agreement stating the setting up of the branch in Spain, as well as appointing a legal representative who shall be resident in Spain.
2).- The mentioned agreement for the setting up of the branch, appointment of the representative in Spain and By Laws for the company, will have to be legalised and translated into Spanish by a Sworn translator.
3).-The social capital approved by the Mother Company will have to be deposited in Spain, when the branch counts with capital endowment.
4).- The legal representative in Spain will grant the Constitution of Company Title Deed in front of a Spanish Notary, which will include the following documentation: Read more »
Less deductions at Spanish Income Tax.
As per Spanish accountants, Arcos & Lamers Asociados, the government in Spain has accomplished what had been discussed in 2012. The tax reduction for investment in a permanent residence for all taxpayers who are fiscal residents in Spain is no longer a fact when acquiring a property after 1st January 2013.
Nevertheless, there is a transitory regime that allows taxpayers in Spain to make the reduction if at 1st January 2013:
they had acquired their usual residence or had paid towards the construction of their property in Spain.
they had paid towards the reforms or extension of the Spanish property.
they had paid fees to carry out work or installations to adjust the property for disabled people. Read more »
TAX IN SPAIN BRUEGHEL EL JOVEN
English speaking efficient Accountants in Marbella, Spain sets out below mentioned some lines with regards to the Spanish Activity Tax (IAE). The below mentioned information is relevant in the event you wish to start an business in Spain or already carry out an economical activity. In general terms the business Activity Tax (IAE) is a direct tax, due by all individuals and legal entities as referred to in art. 35.4 of the Spanish Law 58/2003 of December 17th,, as long as they are engaged on a business, professional or artistic activity on National Territory. However, there are some exemptions.
Exemptions of this tax in Spain:
The following amongst others are exempt: Read more »
English speaking Spanish Tax lawyer of Arcos & Lamers Asociados has the pleasure to inform you on changes of the Spanish VAT Law. The Spanish government approved the new Anti-fraud law on the 31st October, modifying the Spanish VAT law in order to avoid banks using the legal figure of lieu in payment to defraud the Tax Office in Spain. The Treasury has lately detected an increase of VAT fraud among financial institutions through lieu in payment when companies wish to settle their debt with Spanish banks.
When a company resorted to the lieu in payment to settle an outstanding debt with a bank, the financial institution acquired the property for a certain value inclusive of VAT and the company had to settle the Spanish VAT payment with the Tax Office. The company in question not only handed the property over to the bank, but was also the party liable to comply with public tax administration even though the company did not receive such amount to pay the outstanding VAT with the Tax Office.
Later on, the banks could deduce the tax payment for the acquisition as they carry out such transactions through real estate assets management companies that work solely on sales and purchases of real estate and such companies may apply these kinds of deductions.
FOREGIN CITIZEN, WITH PERMANENT ADDRESS IN ANDALUCIA.
If you wish to match your situation as partners with those linked by marriage, it is a requirement to be registered as “registered partnership (pareja de hecho)” at “Registro de Parejas de Hecho” in Andalucia.
In this way, you will benefit, among others, on regional Spanish fiscal and tax regulations, specially the Inheritance Tax in Spain.
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