Archive for the ‘Spanish Tax residence and nationality’ Category

Investing in Spanish offices

Friday, March 27th, 2015

After 7 years of real state inactivity in 2014 International Funds came back, transforming Spain into a hot market for commercial property investments again.

In 2014, investments in non residential assets of €7 billion almost tripled the investments in 2013. 

  

The investors were looking for well-located large shopping centres and office buildings, although the office market accounted for 39% of the transactions mainly in Madrid and Barcelona.

The tax advantages of investing via SOCIMI with Nil Corporation Tax, makes this type of spanish real state investment funds something to be considered. More information at the Spanish Tax Office site http://tinyurl.com/nhrmhok

We should also mention the advantages of obtaining Spanish residency by investing in Spain, via Spanish Golden Visa as featured in this article at http://www.delcantochambers.com/do-you-have-real-estate-investments-in-spain-apply-now-for-your-golden-visa-residency/

Are you eligible for a Spanish Golden Visa?

Wednesday, March 18th, 2015

In order to obtain a Spanish Residency permit by means of the Spanish Golden Visa scheme, you must make an investment in Spain. However, not just any investment will do. It must comply with the criteria exposed in the Spanish Entrepreneurial Act of 2013 in order to make you eligible for the Residency.

The first but not the only way to obtain the permit is by making a capital investment. And perhaps the easiest, most profitable and secure investment is in real state. The conditions are that you must be using at least €500,000 of your own funds to start with. However, above that threshold there is no limit to debt financing, for instance with a mortgage in Spain.

When making an investment of this type, there are specific taxes and fees one must consider.

  1. a) VAT or transfer Tax: up to 10%
  2. b) Stamp Tax, if applicable: 1%
  3. c) Land Registry, Notary and legal fees: up to 2%

 

So, it is important to keep in mind that, in order to apply for the Spanish Golden Visa, the total amount needed will rise approximately another 13% in order to actually be able to make the investment.

An alternative to acquiring real state is buying Stock shares of a Spanish Company; in this case the amount rises to 1.000.000€ or more. Other options are depositing 1.000.000€ or more in a Spanish financial company or acquiring Spanish Treasury  Bonds worth 2.000.000€ or more.

 

Lastly, you can also invest in business projects classified as “of general interest” if you can prove that the business will have a positive effect in job creation, or make a social or economic impact in the geographical area of the investment, or if it represents a significant contribution to scientific and/or technological innovation. The residency permit obtained by this type of investment requires the approval of the relevant Spanish authorities.

 

As you know, a Spanish Residency permit gives you access to all “Schengen” countries, including Austria, Belgium, Denmark, Finland, France, Germany, or Switzerland, amongst many others.

 

EU new Inheritance regulations affecting EU residents in Spain

Wednesday, November 7th, 2012

The Regulation (EU) No 650/2012 of the European Parliament and of the Council of 4 July 2012 on jurisdiction, applicable law, recognition and enforcement of decisions and acceptance and enforcement of authentic instruments in matters of succession and on the creation of a European Certificate of Succession is applicable from 17th August 2015.

According to the new regulation, EU citizens residing in Spain will be subject to the Spanish succession law despite their nationality, unless they have a written will.

Succession laws in Spain abide by the force heirship provisions and it is fundamental for international residents in Spain to have their will in good order, in addition to the one in their countries.

Konsilia has been serving the international expatriate community in Spain since 1982 and we are very happy to draft your will or advice on any other legal or tax issues related to Spanish residence. Please contact Jose Manuel Diaz at josemanuel@konsilia.es

Significant Tax Changes Announced in Spain 2012 Budget

Tuesday, April 10th, 2012

On March 30, 2012, the Spanish government announced the 2012 budget. At the same time, the government approved Royal Decree-Law 12/2012, which introduces a number of relevant changes in the corporate tax area, including new limitations on the deductibility of interest expense.

Interest-capping rule

Following a trend started by other European governments, the Spanish government has introduced an interest-capping rule that replaces the existing thin capitalization provisions. The new interest-capping rule, which will apply to both related- and unrelated-party debt, limits tax relief for net interest expense to 30 percent of the taxpayer’s earnings before interest, taxes, depreciation, and amortization (“EBITDA”), with some adjustments. For entities that are part of a tax consolidated group, this 30-percent limit will apply to the EBITDA of the group. (more…)

Spanish Tax Paradise

Saturday, March 31st, 2012

The Spanish Government has approved a special incentive to disclose untaxed cash amounts (black money) at a special 10% rate, without further interest, penalty and/or tax investigations.

This will allow residents and non residents alike to bring into the Spanish system any amount of undisclosed cash held anywhere in the world.

The constitutionality of this measure is to be seen and I personally have many other questions such as the procedure to be followed, KYC and compliance with international anti money laundering regulations.

An interesting way to open the Pandora box. Keep watching this space!

Spanish Law on Mediation

Tuesday, March 20th, 2012

The Spanish Real Decreto-Ley (Royal Decree-Law) 5/2012, of 5th March, on Civil and Commercial Mediation is already in force. This provision incorporates into Spanish law the Directive 2008/52/EC of the European Parliament and the Council of 21 May 2008 on certain aspects of mediation in civil and commercial matters (just for the record, deadline for transposition expired on 5/20/2011). Following aspects are of interest for PIL (arts. 2, 3, 27):

The Royal Decree-Law applies to mediation in civil or commercial cases, including cross-border disputes provided they do not affect rights and obligations that are non-disposable under the applicable law. “Cross-border conflict” implies that at least one party is domiciled or habitually resident in a State other than that of the domicile/habitual residence of any of the other parties. For parties residing in different Member States of the European Union, domicile will be determined in accordance with Articles 59 and 60 of Regulation (EC). No 44/2001 of 22 December 2000 concerning jurisdiction and the recognition and enforcement of judgments in civil and commercial matters. (more…)

Spain – Regional Administrative Tax Court Acknowledges the Application of EU Law over Previous Discriminatory National Law

Friday, February 10th, 2012

The Madrid Regional Administrative Tax Court (known as “TEAR”) in a decision dated 29 November 2011 (notified on 27 December 2011) acknowledges the application of EU Law over previous discriminatory National Law on the treatment of EU resident pension schemes (in this particular case, a UK pension fund). In this regard, the TEAR specifically refers to the Spanish National High Court of Justice (“Audiencia Nacional”) which delivered a judgment regarding withholding taxes levied on three Dutch pension schemes in Spain.

The TEAR states that the tax treatment suffered by the non resident UK pension fund in Spain during FY 2004 was discriminatory under EU Law compared to a resident Spanish pension fund. The TEAR stressed that the Spanish tax law was discriminatory on the grounds of nationality as well as violating one of the four main principles of EU Law, namely the free movement of capital (Art. 63 TFEU). In addition, the TEAR reiterates that since 1 January 2010, the Spanish domestic legislation was amended as a result of said discrimination in order to be compliant with EU principles. (more…)

NEW TAX AND FINANCIAL MEASURES ADOPTED BY THE SPANISH GOVERNMENT

Friday, January 27th, 2012

A BRIEF SUMMARY OF THE NEW TAX AND FINANCIAL MEASURES ADOPTED BY THE SPANISH GOVERNMENT

On December 30th 2011 the newly elected Spanish government approved Royal Decree 20/2011 enacting a first package of urgent tax and economic measures to correct the Spanish public deficit.

Among these measures, international private clients should be aware of the following tax resolutions: (more…)

Copyright © 2008-2010, León Fernando del Canto - Legal Notices - Contact Us. All Rights Reserved.Entries (RSS) and Comments (RSS).

International Tax Law Barrister, Lawyer, Abrogado & Attorney, Leon Fernando del Canto of Konsilia, offering services relating to international tax planning, tax advice, private clients, international law, serving Spain, United Kingdom, Europe.

Tax Precision is the trading name of León Fernando del Canto Gonzalez, a Barrister regulated by the General Council of the Bar in England and the Colegio de Abogados de Jerez de la Frontera.