Articles

Property owning companies: Don’t trust the bar stool experts!

Those of you who have lived in Spain for many years will probably have been regaled in the past with tales of how people had managed to escape tax liabilities by buying their properties through ‘holding companies’. In fact such ‘bar stool experts’ offering dubious advice still exist—although it is highly doubtful that they are … Read more

New Spanish tax inspection campaign

The Spanish Government recently announced new measures to fight against the black economy in Spain, unofficially 28% of the Spanish GDP. Who are the targets and will these measures work? The Spanish Government recently published the action plan to be carried out by Spanish tax inspectors during 2014 to reduce the Spanish black economy. This … Read more

Important employment and self employment incentives

The Spanish social security system is difficult for foreigners to understand and is extremely expensive for employers. The good news is that the government has at last introduced some meaningful employment incentives in the 2014 social security system. They really broke the mould with these incentives, well 50% broke anyway, as one of the new … Read more

No more tax filings by hand from 2014

From 2014, the possibility of filing the tax declarations by hand will gradually be disappearing, so that they only can be submitted by internet. Last year the Spanish Government announced that the tax law would be modified so that, from 1 January 2014, all tax declarations can only be submitted electronically, so the possibility of … Read more

The Spanish Budget for 2014. Will this help to stimulate the Spanish economy?

The Spanish Government has approved the Budget for 2014. No surprises, the tax system will remain as it has been for 2012 and 2013. Far sighted policies that will generate growth and employment seem as remote as ever. Many argue that “Spain is different”. They mostly refer to the country’s wealth in traditions and culture, … Read more

Spain’s new VAT cash accounting regime – Or, how to turn a good idea into a bad one

When I heard that Spain was bringing in a new VAT cash accounting system, I was stunned. The first thought: how very progressive for Spain. However, then I read the law and how it will work, I quickly changed my mind, it would seem that the lawyers and governmental bureaucrats who wrote the law just … Read more

Will Wealth Tax in Spain ever disappear?

In previous articles we explained that the Spanish Government reintroduced wealth tax in 2011 as an emergency economic measure. The reintroduction was achieved simply by removing the 100% exemption to the tax that had originally been introduced in 2008. However, the tax was eliminated for the majority of potential taxpayers because a significant tax free … Read more