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
If you live, work, or own property in Spain, choosing the right bank account is more than a matter of convenience. It can directly affect your taxes, Social Security contributions, and even the way you pay your bills. With online banks now offering both Spanish and foreign IBANs, it is important to understand how your … Read more
In Spain’s ever-evolving administrative landscape, few initiatives combine digital transformation and regulatory rigour as effectively as Verifactu. Scheduled to come into force in 2026, this system represents a decisive step towards transparency — and a fundamental shift in how businesses and the self-employed issue invoices and report to the tax authorities. Verifactu: What It Is … Read more
As the second instalment of the 2025 Spanish income tax return approaches, it is worth revisiting how the Tax Office deals with late or missed payments. Many taxpayers chose to split their payment into two parts, with 60 per cent due in June and the remaining 40 per cent in early November. The rules seem … Read more
In recent years, many freelancers and self-employed professionals in Spain have created companies to structure their business activities. While this is completely legal when done properly, some of these companies are what are known as shell companies, businesses that exist mainly on paper, without real employees, physical offices, or real economic activity. Their main purpose … Read more
On June 30, 2025, the Spanish Tax Agency (Agencia Tributaria) officially executed the first installment collection of the Impuesto sobre la Renta de las Personas Físicas (IRPF) for the 2024 fiscal year. As every year, the date marked a moment of reckoning: for some, a withdrawal; for others, a windfall. Taxpayers who opted for the … Read more
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