A recent case has raised an important question for employers: What happens when an employee requests paid leave for a legitimate reason but is later found to have misused it?One employer faced this dilemma when an employee took five days of paid leave to care for their hospitalised mother—only to be caught on social media … Read more
In Spain, a dormant company, known as an “inactive company,” is one that has ceased trading but has not been formally dissolved. Despite not engaging in business activities, these companies still have certain legal obligations to fulfill: By adhering to these obligations, dormant companies in Spain can maintain compliance with legal requirements and avoid potential … Read more
What is the Golden Visa and how could it be obtained? The Spanish Golden Visa, introduced in 2013, was a measure designed to attract foreign investment by granting legal residency to non-EU citizens who made a substantial investment in Spain. It was not just a visa, but a fast track to residency, with highly attractive … Read more
What is M202 and who is required to file it? Businesses and entities operating permanently in Spain, as well as those under an attribution of income regime that were established outside Spain but maintain a presence in the country, are required to submit M202. This form serves as an advance payment of the Corporation Tax … Read more
If your company rents properties, you may think that your company has a business activity. However, for this activity to be considered an economic activity and not just a rental activity, the tax authorities have a key rule: you need a full-time employee.The problem is that this requirement is not interpreted in the same way … Read more
When business partners who actively work in their company consider extra compensation, they usually have two options: receiving a salary bonus or taking dividends. The choice isn’t always straightforward, as each option has different tax implications and costs. Understanding these differences can help determine the most beneficial route. A salary bonus is treated as regular … Read more
In today’s fast-paced work environment, effectively managing employee time is crucial for both productivity and compliance. In Spain, since 2019, all companies have been required to maintain a daily record of employees’ work hours. Under new legislation, this record must now be digital. The new regulations are in the final stages of processing in Congress. … Read more
Artificial Intelligence (AI) is transforming industries, and the world of work is no exception. From automating repetitive tasks to boosting productivity and enhancing decision-making, AI is reshaping the workplace. However, this transformation also brings challenges, both in how employees perceive AI and, in the regulations, needed to protect their rights. Over the past year, employees … Read more
As global tourism continues to surge, authorities in popular destinations face increasing pressure to balance the economic benefits of travel with the well-being of local communities. A key regulatory tool in this effort is the tourist license—an official permit required for short-term vacation rentals. By enforcing legal compliance, protecting local economies, and promoting sustainable tourism, … Read more
Taxation in Spain: regional and central government policies In Spain, the management of taxes is divided between the central government and the autonomous regions. Taxes such as income tax and corporation tax are controlled by the central government, whereas others, including wealth tax, inheritance tax, and gift tax, fall under the jurisdiction of the autonomous … Read more
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