Author Archives: Jesús R. Ballesteros

Taxation of Convictions in Procedural Costs

Tributacion De La Condena En Costas Procesales

The true taxation of the costs of judicial procedures is difficult to answer. We must first focus on the question and the concept of costs, since they are considered a credit to the prevailing party. However, this credit is different from the credit that comes from a service leasing contract between the lawyer and the […]

Partial Spin-off of a Company with Properties – Corporate Taxation

Exencion Empresas

Exemption from Corporate Taxation This is a little more “special” than our usual articles, because we are going to attempt to explain one of the corporate restructuring operations which is considered “complex”, but which, if executed well, can save us a significant amount of tax and allow us to re-organise our corporate and personal assets. […]

When a Holding Company Sells Active Companies’ Shares: Article 21 of the Spanish Corporate Tax Law

La Holding Vende Participaciones

or “The Art of Investing and Not Paying for Profits” In January 2015, Article 21 of the Spanish Corporate Tax Law (hereafter LIS) changed significantly, a modification which is not very well known at this time, but is key to investing in Spain and not paying tax for selling another company’s shares. We are referring […]

How Does VAT Work for Holiday Rentals?

Iva Apartamentos Turisticos 02

We are currently experiencing a boom in the rental of so-called “holiday apartments”, caused by the increase in tourists and the tourist sector in general that Spain is suffering. There are many doubts surrounding the taxation of this type of rental, so, in this post, with the help of our tax lawyers, we’re going to […]

LEGAL, TAX AND EXTRAORDINARY PERSONAL MEASURES ADOPTED BY THE GOVERNMENT ON 17 MARCH 2020 TO PALLIATE THE EFFECTS OF CORANAVIRUS (COVID-19)

Cabecera Newsletter 161 Rrss Extra 2

1.      PURPOSE OF THE DOCUMENT We issue a new extraordinary note to inform all our clients firsthand about the measures that the Government of Spain has taken to palliate the coronavirus crisis, published on 18 March 2020. These measures attend to business, labor, tax and personal aspects of all Spanish people. Support measures for the […]

Increase in special taxes and 1,000 € limit on cash payments

Subida De Impuestos Pagos Efectivos Nos Superior 1000 Euros

New developments in taxation for 2017 As from 1st January 2017 it is illegal to pay more than 1,000 euros in cash. On 2nd December 2016 the Spanish Cabinet passed a Decree-Law which reduces the amount of cash payments to 1,000 euros (up until now the limit was 2,500€), as payment for any goods or […]

Compulsory Representation for Non-Residents

Representacion Del No Residente

People considered Non-Resident for Tax Purposes in Spain have two ways of obtaining some kind of revenue (income): either through a permanent establishment or without any permanent establishment being involved. In the first case, with a permanent establishment[1], tax is paid on the entire revenue attributable to that establishment, regardless of the place where the […]

VAT in the construction and rental properties

Apartamentos Turisticos

Continuing on from our previous article, let´s assume that we are a company, that first we bought a plot of development land and on this land we have built ten apartments, we have paid VAT on the purchase of the land and also during the construction of the apartments, as we have contracted the services […]

How to apply for the refund of VAT or compensate the paid VAT?

MODELO303 Big A4 Paper Mockup V1

If you have read our previous post “When do we apply VAT to a purchase of urbanised land“, you will know that we are buying a plot of land that is urbanised or in the process of being urbanised, for which we will be paying VAT at 21 %.  Assuming for example that the price […]

When am I considered to be a Tax Resident in Spain?

Residente Fiscal Espana

Spanish tax residency rules Clients often tell us “I’m not Tax Resident in any country”. It is a serious mistake to think one is not a tax resident, because when you least expect it, the Spanish Tax Agency, or that of any another country can claim taxes from you as a resident, and bearing in […]