Author Archives: Javier Ortega

Acquiring companies with Negative Taxable Bases

– Buying a loss-making company – Since 2015, the legislator has restricted the requirements to be able to take advantage of the Losses[1] of one company in another, on the occasion of the purchase of the former, in such a way that in some cases the right to be able to take advantage of said Negative […]

Non-resident lessor of premises with no permanent establishment for VAT purposes

Controversial question: who must pay VAT on the rental of an establishment when the owner is a Non-Resident for tax purposes in Spain? According to Article 4. One of Law 37/1992, of 28 December, on Value Added Tax (hereinafter, LIVA), “supplies of goods and services carried out within the spatial scope of the tax by […]

What renovations can increase the acquisition value of the home?

The sale of a real estate generates in the selling party a capital gain or loss whose value will be determined by the difference between the acquisition value and the transfer value. With regard to the acquisition value it will be necessary to see if it has been for valuable or lucrative title. In the […]

Loan between partner and partnership: Corporate and personal income tax implications – Frequently Asked Questions

It is quite common, especially in times of crisis, for the shareholders of a commercial entity to contribute funds from their personal assets to strengthen the company’s cash flow and to be able to meet their payment obligations without having to go to a financial institution. The usual practice is for the shareholder to contribute […]

Purchase and sale transactions with deferred price for personal income tax purposes

Law 35/2006, of November 28, 2006, on Personal Income Tax (hereinafter LIRPF), in its Article 14, paragraph 2. b) in its special rules of temporary imputation establishes that transactions with deferred price will be taxed as follows: d) In the case of transactions in installments or with deferred price, the taxpayer may choose to impute […]

Changes in Inheritance and Gift Tax in Andalusia applicable as from 1st January 2022

On the 20th of October, Law 5/2021, on Assigned Taxes of the Autonomous Community of Andalusia, was published in the Official Gazette of the Junta de Andalucía, with novelties, among others, in the Inheritance and Gift Tax, novelties that come into force in 2022. Let’s see what is new with respect to the previous regulation […]

Imbalance of Assets and Liabilities: cause for dissolution of a commercial company

It is a cause of dissolution of a mercantile company, among others, the one in which due to the losses the Net Worth is reduced to an amount lower than half of the Equity of the company. We would be before the obligation to dissolve the mercantile, and not to do it in the term […]

Buying and selling companies: Do I buy the shares or do I buy the company’s assets directly? Part I: commercial aspects

In a process of acquiring a company, one of the first questions that arises is how to carry out this type of transaction. This operation can be carried out either through the purchase of the shares of the company or through the purchase of the company’s assets. Although both figures may have the same objective, […]

Household goods in the calculation of an inheritance

If you have to liquidate the Inheritance and Gift Tax (ISD) in the near future, you should know that the Supreme Court has ruled on how to value the domestic household goods for the purposes of this tax, which is included in article 15 of the Inheritance and Gift Tax Law (LISD). The aforementioned article […]

Capital reduction with return of contributions in a limited liability company. Taxation in the individual partner.

What is a capital reduction by return of contributions? In a previous article of our colleague, Macarena Ruiz, entitled “Reduction of capital with return of contributions” she indicated that: “the reduction of capital by return of contributions has the particularity that the value of the contributions either in monetary amount or in movable or immovable […]