Changing a bank account in Spain is a common step for residents and non-residents alike, but it requires careful planning to avoid complications. Whether you’re switching banks for better services, changing from a resident to a non-resident account, or simply looking for lower fees, there are several important aspects to keep in mind. Reasons for … Read more
If you have recently bought, inherited, or been gifted a property, you might be in for an unpleasant surprise when calculating your taxes. The tax office doesn’t just consider the price you paid (or the value stated in the deed)—they rely on a reference value set by the government. The problem? This reference value is … Read more
In Spain, businesses and self-employed individuals must comply with various tax reporting obligations. One of these is Modelo 347, an annual informative declaration required by the Spanish Tax Agency (Agencia Tributaria). This form is used to report transactions with third parties that exceed a specific threshold, ensuring greater transparency and preventing tax fraud. What Is … Read more
Self-employed employees in Spain, also known as “autónomos,” are required to contribute to the country’s Social Security system, which determines their access to benefits such as pensions, sick leave, and unemployment benefits. In 2025, the income-based contribution system introduced in 2023 will continue to evolve, adjusting income brackets and contribution bases to create a fairer … Read more
With Donald Trump securing re-election in November 2024, many Americans are reassessing their future, including where they want to live and pay taxes. While political shifts often prompt individuals to consider relocating, Spain has long been an attractive destination for expatriates, thanks to its sunny climate, rich cultural heritage, and relatively low cost of living. … Read more
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
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
Social Security offers an extension of the flat rate contribution scheme for self-employees whose net income does not exceed the Minimum Interprofessional Wage (SMI)
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
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
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