Articles tagged with: taxes
Headline, lawyer, legal advice, non tax resident, Tax Law, taxes »
If you are a non-resident in Spain and own a property there, you are liable to Spanish Income Tax for Non-Residents payment (Spanish IRNR). This issue was already considered in former articles on our website in November 2010 and October 2013:
When a property is owned by a married couple or several persons, each of them becomes an independent taxpayer, so that they should file tax returns separately according to the ownership interest they have on this property.
Depending on the property final use, the income subject to tax payment may be …
Headline, Inheritance Tax, nerja, NON RESIDENT, PREVENTION, Tax Law, taxes »
Recently, some of our clients have received notifications at our law firm from the Spanish Tax Office demanding the submission of a copy of their Spanish Income Tax return for fiscal Residents or their Income Tax Return for Non Residents with properties in Spain, which are compulsory to be filed in these cases and considering that Spanish Tax Authorities know they own or have owned a property in Spain. Warning that failure to do it will be fined or will give them a penalty. This issue was formerly considered in …
Featured, Income, lawyer, legal advice, malaga, resident, Tax Law, tax resident, taxes »
The Spanish Government passed on the 15th of November 2012 a Royal Decree providing the liabilities to inform about assets and rights located abroad. This information is available at http://www.boe.es/boe/dias/2012/11/24/pdfs/BOE-A-2012-14452.pdf.
This liability only affects resident taxpayers; non-residents are not liable for submitting this tax return.
Any account in financial institutions and any kind of real property or real property rights of ownership shall be declared, as well as any securities, interests, insurances and incomes, which are deposited, managed or obtained abroad.
Taxpayers shall inform about these assets and rights which they own abroad …
Capital Gains, CONVEYANCING, developer, english speaking solicitor, Headline, Income, Property law, taxes »
In this year we have published several blog articles regarding tax changes on property subjects which the Spanish Central Government has passed over this year. In that regard, the deadline to implement most of them finishes on the 31st of December.
As a requirement to increase tax revenues, this new year will bring the removal of some tax reliefs which are currently enjoyed by home buyers in Spain.
From the 1st of January, home buyers in Spain should consider that the following tax incentives will disappear:
1) 50% tax exemption on capital gains …
FAMILY LAW, Featured, Inheritance Tax, legal advice, NON RESIDENT, PREVENTION, PROBATE LAW, taxes, wills »
Currently, non-resident taxpayers face two major problems in respect to the payment of Inheritance Tax in Spain:
1. Discrimination: non-residents pay much more taxes than residents.
2. Double taxation: this tax is payable in two different countries for the same inherited property.
In Spain, taxes are paid for inheritance between non-residents—even though they are immediate family members, spouses, parents, children…, upon application of the government regulations, that is, a progressive scale of taxes based on the transferred property value.
However, regarding inheritance between residents—immediate family members—taxes are much lower or even not paid, as …
conveyancing, CONVEYANCING, developer, english speaking solicitor, Featured, legal advice, Property law, Property law, taxes »
The Spanish Government, particularly Mr Cristobal Montoro, Chancellor of the Exchequer, has announced last Friday 13th of July that, from the 1st of January 2013, will apply a VAT of 10% (of the declared value of the property) to new properties, with regard to the current 4%.
During the press conference after the Council of Ministers, the Chancellor has recalled that the application of the reduced VAT (4%) for the purchase of a property had an “expiry date”, that the Government has stated today for the beginning of 2013.
Mr Montoro has …
CONVEYANCING, legal advice, mortgages, New building declaration, New sales, PREVENTION, Stamp Duty, taxes »
I would like to update you about some new measures carried out by the Junta de Andalucía, containing many reforms in the different existing taxes (not exactly to re-boost the current market situation…).
Concerning those interesting, we will focus on the Stamp Duty (A.J.D.), a tax applied to those public acts formalized on public documents to be registered in the different Public Registry offices with an economic amount (e.g. new property sales, new building declarations, or a mortgage deeds, among any others).
So, last week, the 19th of June, the Junta of …
Capital Gains, CONVEYANCING, discount, english speaking solicitor, Featured, Headline, Income, legal advice, malaga, NON RESIDENT, resident, solicitor, taxes »
Regarding the current financial situation, which is reflected in the drop of property sales in Spain every three months, the Spanish Government has passed a new tax exemption. This exemption tries to promote the sale of properties and may become very interesting for both individuals and bodies corporate considering buying a real estate property in Spain in the short term, whether they purchase commercial premises, homes, offices, garages, plots, storage rooms, etc.
On the 12th of May 2012, the Central Government passed the Spanish Royal Decree-Law 18/2012 of 11th of May …
Featured, Headline, Herencias, Inheritance Tax, malaga, PROBATE LAW, taxes, wills »
According to our legal and professional experience, there are many reasons for advising our clients to sign a Will before a Notary Public in Spain with regard to their property in Spain.
You cannot imagine how complex it may be for the heirs of a deceased to formally take the assets situated in Spain (properties, current account deposits, insurances, company shares or stakes … etc). when the only Will available is the one made by the deceased in his/her country of origin, or even worse, when the deceased did not make …
CONVEYANCING, Featured, Headline, Income, malaga, NON RESIDENT, PREVENTION, taxes »
Presently, by the fall of prices on the property market, many owners sell their homes for a similar or lower price than the purchase price when they originally bought them, which the main result is that there is no capital gains or this is not that much high on the sale of the property.
However, if these owners are non-resident tax in Spain, that is, if they pay taxes in another country, then the buyer has the legal obligation to withhold 3% of the purchase price and to pay it to …