Articles

Should property owners continue paying taxes on occupied properties?

In Spain, the issue of property occupation has sparked intense debates regarding the rights and obligations of property owners. One of the most contentious aspects is whether property owners should continue paying taxes associated with properties that have been unlawfully occupied. Currently, Spanish law does not consider unlawful occupation as grounds for exemption from property-related … Read more

M349 filing rules: are you submitting on time?

The informative M349 form includes a critical method for filing the declaration to the tax office for businesses involved in intra-community transactions. While it is generally filed monthly, there are specific rules and exceptions regarding its frequency. Below is a breakdown of the guidelines, along with practical examples to clarify the difference between monthly and … Read more

2025 Tax Innovations

As Spain ushers in the new tax year, taxpayers are greeted with some notable updates. While there aren’t many sweeping changes, a few key adjustments could significantly impact high-income earners, property owners, and those with investment interests. Here’s an overview of the most relevant tax developments for 2025. Higher Tax Rates on Large Incomes and … Read more

Thinking of Transferring Shares to a Holding Company? Beware of Potential Tax Consequences!

A recent resolution issued by the Central Economic-Administrative Court (TEAC) introduces additional complexity to the tax treatment of business mergers, restructurings, and reorganisations. In this new resolution, the court argues that it constitutes a form of tax evasion when a shareholder transfers shares to a holding company with the intention of selling them in the … Read more

Corporation Tax – Payments in Advance (m202)

In Spain, companies showing profit in their last Corporation Tax filed, are required to make advance payments for their next Corporation Tax, in three instalments a year: in April, October, and December. These payments can be calculated using two methods outlined in Articles 40.2 and 40.3 of the Corporation Tax Law. Choosing the appropriate method … Read more

Supreme court ruling on dismissals 

Supreme Court Ruling Could Lead to Higher Compensation for Workers in Disciplinary Dismissals A recent ruling by the Spanish Supreme Court (TS) has made a significant change to employment law, potentially leading to higher compensation for workers who face unfair disciplinary dismissals. On 18 November, the Court decided that companies must now give workers a … Read more

A 100% tax surcharge on properties for non-European residents: is this feasible?

Prime Minister Pedro Sánchez announced yesterday in a press conference that his government aims to increase the “tax burden” on non-European residents purchasing property in Spain to 100% of the property’s value. While this measure ostensibly seeks to curb speculative investments and alleviate housing shortages for locals, it raises more questions than it answers. There … Read more