What is M202 and who is required to file it? Businesses and entities operating permanently in Spain, as well as those under an attribution of income regime that were established outside Spain but maintain a presence in the country, are required to submit M202. This form serves as an advance payment of the Corporation Tax … Read more
When business partners who actively work in their company consider extra compensation, they usually have two options: receiving a salary bonus or taking dividends. The choice isn’t always straightforward, as each option has different tax implications and costs. Understanding these differences can help determine the most beneficial route. A salary bonus is treated as regular … 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
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
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
A brief foreword It will come as no surprise that Spain’s famously bureaucratic system has a truly rich array of tax forms that have to be filed by businesses and individuals. In this article we list and explain in brief terms the 20 odd most common tax forms that can apply to small scale businesses, … Read more
In this article we examine some oddities in the Spanish social security and income tax system for company directors/shareholders
The Spanish tax office is making extensive use of Big Data to track down tax avoiders, ad is having considerable success.
Company directors need to be very careful how they handle the business f the company to avoid personal attack for tax debts
Spanish tax law contains numerous anti-tax abuse provisions that discriminate against countries that are considered to be tax havens (paraisos fiscales). It has maintained a list of such countries since 1991 and the number of countries has gradually reduced over the years as countries sign tax treaties with Spain that contain an exchange of information … Read more
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