Spence Clarke & Co. Chartered Accountants - Tax Consultants - Company Law

The New Obligation of Gibraltar Financial Institutions to Provide Automatic Exchange of Tax Information to The Spanish Tax Office

Miguel Ángel Blanca Prieto 17 July 2017

As part of the recent agreements of exchange of tax information subscribed by Gibraltar for cooperation in tax matters, the Gibraltar financial institutions will be reporting to the Spanish tax office the relevant tax information of all their account holders, including income on earnings, tax withheld and tax residency status. The first reporting will take place before the end of 2017 related to the tax year 2016. The world is getting smaller...

New law in Andalucia to regulate holiday letting

Alistair Spence Clarke 03 February 2016

A new law was passed on 3/2/2016 to force landlords in Andalucia to register properties used for holiday letting. The fines for ignoring this law are truly draconian with a minimum of 18,000€ and maximum of 150,000€. An estimated 400,000 properties in Andalucia will be affected.

The new international disclosure rules

Alistair Spence Clarke 07 December 2015

More than 90 countries have now signed up to the automatic information system, including most tax havens and the other bad boys like Switzerland, Austria, Luxembourg and Cyprus (to name but a few!). There is now no place left to hide except places where you would have to be very brave to leave your money.

Taxing a rent free commercial property

Miguel Ángel Blanca Prieto 27 November 2015

Picture the scene: with youth unemployment in Spain currently hovering around the 50 per cent mark for under 25s (source Eurostat), you decide to give your son a helping hand by letting him set up business in an empty shop you happen to own.

Paying Company directors what they are worth

Alistair Spence Clarke 26 November 2015

The dubious sight of well-paid businesspeople walking away from soon to be bankrupt companies—but not before pocketing millions of Euros (in some cases hundreds of millions of Euros)—rightly raised a stink, particularly with those less fortunate employees who lost their jobs and shareholders who lost their money.

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

Alistair Spence Clarke 12 November 2015

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.'

Spain's new exit tax system and how it affects those leaving the country

Alistair Spence Clarke 21 May 2015

Spain is one of a number of countries that charge tax on unrealised capital gains when their tax residents leave the country, and it has had a new law in place since January 1, 2015.

We have set out a series of Q & As to answer your basic queries about how this law might affect you

New Spanish tax inspection campaign

Miguel Ángel Blanca Prieto 05 May 2014

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?


Claudia Vargas Puccio 10 February 2014

FAQs - M720 annual declaration of foreign assets. Beware, some of the answers to the questions are truly mad.

Spanish Tax Treaties Changes - a taxing trend for foreigners

Claudia Vargas Puccio 30 October 2013

Spain is very active in signing new tax treaties and updating some old treaties, unfortunately not necessarily for the benefit of the individuals investing in Spain.

Will Wealth Tax in Spain ever disappear?

Miguel Ángel Blanca Prieto 30 October 2013

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.

When will they learn?

Alistair Spence Clarke 07 June 2013

The latest fashion for the wealthy in Spain is to find another country to pay income tax.

Yet more anti tax fraud measures for Spain - the M720

Miguel Ángel Blanca Prieto 31 January 2013

Here are details of the Stick that followed the tax amnesty Carrot. If there was ever a piece of tax law that needed thought, this is it!

A last chance to declare - tax amnesty and an end to tax fraud in Spain?

Alistair Spence Clarke 09 July 2012

Spanish taxpayers have been given their last chance to clean up their tax affairs.

New measures, just introduced by Rajoy's Government, provide taxpayers with an amnesty for tax fraud. They can now declare previously hidden income and assets by paying a flat 10% one off tax charge. The deadline for the amnesty is 30 November 2012.

This is the carrot.

The stick is a change in the tax rules that will eliminate the current four year tax prescription rule.

New tax incentives for property purchase in Spain

Alistair Spence Clarke 09 July 2012

A few weeks ago the Spanish Government introduced another important tax incentive for property purchasers in a bid to kick start the moribund property market and help the banks get rid of their stock of repossessed properties. It is worth comparing Spain's property tax incentives to the massive French tax increases on foreign property owners. If there was ever a time to buy in Spain, this is it.

Let's Give Thanks to the Spanish Bureaurocracy!

Alistair Spence Clarke 04 December 2011

Expats take note! There are times to give thanks to the much maligned Spanish adminsitrative system.

Will Rajoy Have What it Takes After the Spanish Elections on Sunday?

Alistair Spence Clarke 18 November 2011

Election day on Sunday 20th November should produce a dramatic change in Government for Spain. But what will this mean?

To be a resident, or not to be, that is the question.

Alistair Spence Clarke 14 November 2011

What makes a resident of Spain a tax resident of Spain? It is an important question and misinformation arises everywhere, not least in the press, over a beer in the golf club, just about anywhere, in fact.

The EU Starts Action Against Spain for its Unfair Inheritance Tax Law

Alistair Spence Clarke 03 November 2011

The European Commission made official complaints against Spain in May 2010 and February 2011 regarding its Inheritance tax legislation. These complaints were ignored and so the EC has commenced an action against the Spanish state through the European courts.

The Tax Man Cometh...

Alistair Spence Clarke 30 October 2011

Over the last few year or so we have heard that various governments have licitly and not so licitly managed to get hold of lists of people with bank accounts in funny places. What has become apparent is that these lists are being shared with the tax authorities of any interested country. Well Spain has shown its interest too...

Return of the Dreaded Spanish Wealth Tax - A Brief Commentary

Alistair Spence Clarke 03 October 2011

Many will remember that happy day in December 2008 when the Spanish Government eliminated Wealth Tax, or so it was thought!

The idea in 2008 was to make Spain a more attractive economy and do away with an archaic tax that has its roots in 1977 when inflation and interest rates were in double figures, the fledgling Spanish democratic state was crying for financial air and so an 'extraordinary tax' was born.

Tax Office Fights Against Tax Evasion

Alistair Spence Clarke 07 April 2010

The Spanish Government intends to approve a number of changes in legislation to strengthen the tax office's armoury against the black economy and tax fraud. They propose to modify the Penal Code so that substantial tax fraud may be penalised with up to 6 years (currently four years) in jail.

OECD Says: Gibraltar is Now White!

Alistair Spence Clarke 23 February 2010

Since the publication of the 'grey list' by the Organisation for Economic Co-Operation and Development (OECD) in April 2009, the number of countries included on the list has decreased from 35 to 16. 19 countries have signed at least 12 different agreements of exchange of fiscal information with different countries. The signing of these agreements results in their removal from the 'grey list'.