Up until January 2022, Spanish tax legislation provided for heavy penalties for failure to file Form 720, filing with erroneous information or late filing of the Form 720. The amounts of these fines were 5,000 euros for each missing, incomplete, inaccurate or false bit of information or set of information, with a minimum of 10,000…
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There are four ways of redeeming a pension scheme: in the form of capital, in the form of income, in the form of an annuity or in mixed form. Pension schemes are taxed in the same way as earnings, but they can be subject to a 40% tax reduction if certain requirements are met. Firstly,…
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Spanish residents who hold properties abroad worth over €1,502,530.26 in total -or when the recipient of such investments are territories or countries classed as tax havens, regardless of worth- must declare them with the Ministry of Economy’s Investment Register (Registro de Inversiones del Ministerio de Economía) by submitting form D-7A. The deadline for this declaration…
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When a non-resident buys a property in Spain, as well as declaring property transfer and stamp duty tax (Impuesto de Transmisiones Patrimoniales y Actos Jurídicos Documentados) and/or VAT tax, they must file a declaration of this investment with the Ministry of Economy’s Investment Register (Registro de Inversiones del Ministerio de Economía) when the total amount…
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In the spirit of innovation and progress to deliver a first-rate service to TempleCAMBRIA’s clients, the firm’s partners, Juan Antonio Rodríguez García and Álvaro Morales Sousa, recently passed the aptitude tests for training as customs representatives granted by the State Agency of Tax Administration, belonging to the Ministry of Finance and Civil Service (Ministerio de…
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Last Wednesday 8 September, the Chamber for Contentious Administrative Proceedings of the Supreme Court finally announced its decision declaring the Plan General de Ordenación Urbana (PGOU) town plan for Chiclana null and void, a plan that was given final approval in 2016. The reasons for this annulment are mainly down to formalities. The main error…
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Individuals who receive gains on the sale of their primary residence can be exempt from paying income tax if the vendor is over 65 years old or the gains are reinvested in a new primary residence. The following requirements must be fulfilled: 1. Primary residence a) The house being sold must qualify as the taxpayer’s…
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There have been a number of tax implications following Britain’s exit from the European Union (Brexit).One of these is that UK residents who own a property in Spain will be taxed more heavily when they rent their property (24%) and they will be taxed on the gross amount, without being able to deduct a single…
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Spain and Gibraltar have reached a post-Brexit agreement, published on 13 March 2021. This lays down rules for determining tax residency. An individual will be considered a resident in Spain if: the individual spends more than 183 overnight stays in Spain over the course of a calendar year. Periods of sporadic absence (where the person…
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Working from home has become more popular recently, with opportunities to move to countries like Spain, which can offer a better climate and quality of life. This triggers tax consequences, for example, the individual must know in which country their earned income will be taxed. There are some basic rules in double taxation agreements: …
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