Wednesday, January 7, 2015
FILING A TAX FORM IS NOW OBLIGATORY FOR ALL
NON-RESIDENTS (INDIVIDUALS AS WELL AS COMPANIES)
IN SPAIN.
Filing a tax form is now Already some 10 years in the making is now effective
by means of Ley 26/2014, 27.11.2014 making it obligatory for non-residents
living in Spain to file tax returns in Spain, in principle regarding their full
income picture. In other circumstances solely regarding their Spanish assets.
As we recall Ley 26/2014 modified Ley 35/2006 of 28.11 del Impuesto sobre
la Renta de lasPersonas Físicas, which was approved by Real Decreto
Legislativo 5/2004 of 5.03 as well as other (related) norms.
These changes, as published in Offical State Bulletin BOE nº 288 - 12327
28.11.2014 - were introduced in order to 're-enforce' legal security, providing
more clarity and favouring circulation liberties within the European Union.
With regard to non residents without permant establishment this law
distinguishes between;
1. Private persons; and
2. Legal entities;
establishing for either of these two the deductable amounts to be calculated
on the imponible basis, by remission, respectively to IRS and Company Tax legislation.
As from 2015 on, non-residents in Spain, but resident in an other European
Member State may opt to contribute taxes in Spain under the spanish IRS
(IRPF) tax legislation.
In this manner the non-resident residing in Spain will not suffer the taxation
on the capital gains for selling, for instance, the former spanish habitual
residence, when this amount is reinvested in Spain. Simultaenously the same
Spanish inherritance tax exemptions shall be applicable in those cases when
a spanish property is inheritated by EU-Member State non-residents.
At the same time this would favour non-resident tax payers in Spain with
residency in other EU Member State countries with a low income, to a
19% income tax. And those who are resident in Spain, - under application
of certain conditions - to only a 15% of income tax.
Thus enabling non-resident tax payers by opting for the applicability of
the Spanish tax system, an equal treatment to those who are resident in
Spain.
For all other non-residents without permanent establishment a tax of
24% will be applied.
An other result of the legislation changes is that - in principle - V.A.T. tax
= impuesto de IVA, is to be paid in the EU-Member State of residence of
the buyer.
This will ofcourse bring about advantages for some and disadvantages
for others, depending on where the purchasor has his residence, as IVA
paid and received are 'nationaly' deductable. Making the subject of taxes,
- like always - a very delicate
More or less in the same manner, these alterations are applicable to non
- residentcompanies with a permanent establishment in Spain in order to
avoid double taxation procedures, which will oblige them to first pay in
both countries and thento request the return of the paid taxes in one of
them. See art. 7 of the Treaty Convenio Tributario sobre la Renta y sobre
el Patrimonio de la Organización para la Cooperación y el Desarrollo
Económico, with regard to business benefits.
Don't forget; tax avoidance is legal, but tax evasion is illegal. Prior to
acting ALWAYS contact your own local advocate, accountant, or tax
advisor.
Chosing to pay taxes in the one or the other EU-Member State Countries
may fill your daily life with a whole lot more sunshine.
Note: No rights, which so ever, can be obtained from this article.
source: http://www.boe.es/boe/dias/2014/11/28/pdfs/BOE-A-2014-12327.pdf
Wednesday, June 25, 2014
Spanish rental agreements
Letting out your property in Spain may seem a good way to generate some extra income in these times of financial crisis. And it will be when you manage to avoid the pitfalls of Spanish rental legislation.
12. Always identify the premises with the land registry identification.
The Ley de Arrendamientos Urbanos (LAU) however is not as simple, nor straightforward as it appears at first sight. Herewith a few short remarks that may give you some insight:
1. The law on urban rentals is also applicable on rustic cottages when used for urban purposes, as well as rentals for professional and commercial purposes.
2. Normally the rental periods are expressed in time spans of 1 year. Rentals for 11 months or 2 years do not avoid the applicability of the automatic renewal right of the Lessee up to a maximum of 5 years.
3. The law automatically and obligatory renews the rental timespan up to a period of 5 years,
unless at the time of celebration of the contract the Lessor expressly stipulates, the need for the premises - as his own personal permanent residence - prior to the lapse of 5 years.
4. After completion of the 5 year obligatory renewal period, when the Lessee is not previously and duly notified, the rental agreement will automatically (but now not obligatory) renew for anual periods up to 8 years.
5. The Lessee can always revoke the rental agreement by notifying the Lessor with a previous 30 days. However this is not the case in those rental agreements that were at the start contracted for over 5 year periods, - let´s say for a 9 year period in which case the Lessee will have to indemnify the Lessor for the remaining years.
6. The sale of the house will not end the anual rental agreements (with the obligatory timespan of 5 years) but does allow parties to anually rescind the contract during the following 3 year period.
7. The Lessee has the right of preference on the purchase and sale of the premises - providing paying the purchase price.
8. The rental agreement is subject to a stampfee to be obtained at the Finance Department (Hacienda).
9. An income tax of 21% over the rent is to be paid, every 3 months in those cases where the Lessee exercises a profession or an ecomonic activity, to be presented with the trimestral VA tax declaration. This tax is deducted from the amount that the Lessor receives as it is paid by the Lessie to theHacienda. The same applies when the Lessor is economically active as a private or legal entity.
10. The 21% tax over the rent is to be paid by the Lessor in the anual tax declaration as income over the respective year.
11. Always identify the Lessor and Lessee, with their full names, addresses, tax numbers and passports. And include their addresses for identification purposes following the contract.
14. Always include the obligation for the respective party to pay the rental tax.
15. Always include a clause that the rent is anually subject to a national indicated raise.
And ofcourse, all parties can freely engage and therefore desengage for any contract, when both are willing to do so.
Have an advocate or lawyer, - duly inscribed at the respective Law Society - draw up your rental agreement and not some gestoria or contable.
And remember, if you wish to let out your property for only vacational purposes,- for example 14 days - state so in the contract, excluding that the Lessee will make you of the premises for his permanent residence, as you will need it, as such, for yourself.
© Mevr. mr. drª Marian Aletta Does - 16.04.2012
Saturday, September 28, 2013
Transatlantic Trade and Investment Partnership - Part I
Transatlantic Trade & Investment Partnership between the US and the EU
After a 2 year preparation period, on 14th of June 2013, the European Commission, on behalf of the respective European Member States, initiated talks with the United States regarding the set up of a Transatlantic Trade & Investment Partnership between the US and the EU.
The second round of negotiations is to take place between the 7th to the 11th of October 2013 in Brussels. (1)
This trade agreement, - allegedly the biggest bilateral trade deal ever negotiated as the US and EU already engage in a daily trade of goods and services with an estimated amount of 2 billion euros - is previewed as financially most advantageous, both for the American as well as the European economies.
During the first negotiation rounds in Washington which took place between the 8th &12th of July earlier this year, the EU presented its initial position papers, which hold technical documentation on various aspects of the negotiations, for example;
- Cross-cutting and Institutional provisions on regulatory issues;
- Technical barriers to trade;
- Sanitary and Phytosanitary measures (i.e. barriers to trade in food
and agriculture products;
- Public Procurement;
- Raw materials and energy;
- Trade and sustainable development.
Critics point to a deviation from the World Trade Organization (WTO) efforts to reboot the Doha Round of trade negotiations and a history of EU-US contention over trade policies governing global agriculture, intellectual property and information technology, as possible complications. (2)
In defending the choice to advance TTIP negotiations to the World Trade Organization and global critics, senior officials from the EU and U.S, point to the potential outcome of the bilateral trade negotiations as key to the economic revitalization of the global economy and world-wide job creation. (2)
As production can only function when coupled with sales, there are subvention plans available throughout Europe and the United States. As well as a wide range of companies, so called 'SICAVS' specializing in investment opportunities, providing capital to small and medium-sized companies, from development capital to control buyouts.
All rights reserved and general disclaimer
After a 2 year preparation period, on 14th of June 2013, the European Commission, on behalf of the respective European Member States, initiated talks with the United States regarding the set up of a Transatlantic Trade & Investment Partnership between the US and the EU.
The second round of negotiations is to take place between the 7th to the 11th of October 2013 in Brussels. (1)
This trade agreement, - allegedly the biggest bilateral trade deal ever negotiated as the US and EU already engage in a daily trade of goods and services with an estimated amount of 2 billion euros - is previewed as financially most advantageous, both for the American as well as the European economies.
During the first negotiation rounds in Washington which took place between the 8th &12th of July earlier this year, the EU presented its initial position papers, which hold technical documentation on various aspects of the negotiations, for example;
- Cross-cutting and Institutional provisions on regulatory issues;
- Technical barriers to trade;
- Sanitary and Phytosanitary measures (i.e. barriers to trade in food
and agriculture products;
- Public Procurement;
- Raw materials and energy;
- Trade and sustainable development.
Critics point to a deviation from the World Trade Organization (WTO) efforts to reboot the Doha Round of trade negotiations and a history of EU-US contention over trade policies governing global agriculture, intellectual property and information technology, as possible complications. (2)
In defending the choice to advance TTIP negotiations to the World Trade Organization and global critics, senior officials from the EU and U.S, point to the potential outcome of the bilateral trade negotiations as key to the economic revitalization of the global economy and world-wide job creation. (2)
As production can only function when coupled with sales, there are subvention plans available throughout Europe and the United States. As well as a wide range of companies, so called 'SICAVS' specializing in investment opportunities, providing capital to small and medium-sized companies, from development capital to control buyouts.
Transcribing: ... 'A SICAV is an open-ended collective investment scheme common in Western Europe, especially Luzembourg, Switzerland, Italy, Spain, Belgium, Malta, France and Czech Republic. SICAV is an acronym for French société d'investissement à capital variable, which
can be translated as 'investment company with variable capital'.' (3)
can be translated as 'investment company with variable capital'.' (3)
It is similar to an open-ended mutual fund (4) in the United States, while a sociedad de inversión de capital fijo or société d'investissement à capital fixe (SICAF) is similar to a closed-end fund.(5)
As in the case of other open-end collective investment schemes (such as contractual funds), the investor is in principle entitled at all times to request the redemption of his units and payment of the redemption amount in cash. SICAVs are increasingly being cross-border marketed in the EU under the UCITS directive.' (6) ...'
The Madrid Bourse under control of the CNMV (Comisión Nacional del Mercado de Valores) index is responding favourable to the foreseen investments, as it looks that brighter times are arising after the tempests of storm, rain and austerity that have been striking Spain.
Yes, if all goes as foreseen, - the pain in Spain, will soon be over.
During the following writings we'll provide more information on Transatlantic Trade and the Investment Partnership Policies, as to be implemented by the US and EU, subventions and a view of potential Spanish companies.
Please do not hesitate to contact us.
© Mevr. mr. drª Marian Aletta Does
All rights reserved and general disclaimer
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