The Estepona Town Hall has implemented the most significant reduction in the municipal property tax (IBI) in the town’s history, benefitting nearly 38,000 residents. The most recent tax bills, issued in August, reflect an average 20% reduction, representing a total saving of 6.1 million € for local households. This fiscal shift comes after the Town … Read more
What is the Modelo 840? The Modelo 840 is the form that businesses and professionals in Spain must use to register the economic activity they carry out for tax purposes. It is linked to the Impuesto sobre Actividades Económicas (IAE), which is a local tax paid by companies and self-employed people based on the type … Read more
Introduction For many small businesses and self-employed professionals in Spain, the main difficulty with taxes is not the tax burden itself but the timing of payments. VAT, corporation tax, quarterly personal income tax advances and other obligations often create sudden cash flow pressures that do not necessarily align with the company’s inflows. To help businesses … Read more
On 18th August 2025, the average Spanish taxpayer finally celebrated their “Tax Freedom Day” — the symbolic date when they stopped working for the State and began working for themselves. In Andalucia, that day arrived even later, on 19th August. According to the latest report by Fundación Civismo, this milestone arrived 16 days later than … Read more
IntroductionTax Form 232 is an essential document for companies in Spain who engage in international transactions with Tax Havens or dealings with related parties. It provides the Spanish tax authorities (Agencia Tributaria) with information about these transactions, ensuring compliance with Spain’s tax regulations and its commitment to international standards of transparency. In this article, we … Read more
From this year, high-earning employees in Spain are required to pay an additional Social Security contribution, a measure introduced to strengthen the financial sustainability of the system. Unlike standard contributions, this extra payment does not increase future pension entitlements but directly supports the national Social Security fund. The contribution applies to salaries exceeding the maximum … Read more
If your company owns rental properties, you may be missing out on one of the most powerful corporate tax reliefs: the special housing rental scheme, which allows you to reduce the tax payable on rental income by 40%. However, the key is to meet the requirements and exercise the option in time. For example, if … Read more
The Spanish Government has taken a decisive step in addressing one of the greatest labour and public health tragedies of the last century. The new Royal Decree sets out the procedure and conditions for victims of asbestos, and, in certain cases, their families, to receive financial compensation for the damage caused by exposure to this … Read more
In recent years, there has been significant debate regarding the tax treatment of late payment interest in the context of taxation. Below, we explain how these interests are calculated and how they are taxed under the Spanish Personal Income Tax (IRPF). What are late payment interests? Late payment interests are intended to compensate the tax … Read more
What are LEZs? Low Emission Zones (LEZ), or Zonas de Bajas Emisiones (ZBE), are designated areas within Spanish cities where access is restricted for the most polluting vehicles. The aim is simple: reduce harmful emissions, improve air quality, and encourage a shift towards cleaner transport. Under Spain’s Climate Change Law, all cities with more than … Read more
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