Exit Tax in Spain refers to a tax applied when an individual or entity changes their tax residence outside the country. This tax imposes levies on unrealized gains accumulated by the taxpayer before the departure, particularly on assets like stocks or properties. The aim is to prevent tax evasion by taxing the accumulated gains at… Continue reading Unraveling Exit Tax in Spain: smart taxation when changing residence
Author: Elena Fernandez
Unification of criteria by the TEAC with respect to the deduction for investment in primary residence
Indeed, the Central Economic-Administrative Court (TEAC), in its Resolution 00765/2023, dated April 22, 2024, has decided to unify criteria in relation to the possible application of the deduction for investment in primary residence in the years after 2012 for those taxpayers who acquired their primary residence before January 1, 2013 and who did not apply… Continue reading Unification of criteria by the TEAC with respect to the deduction for investment in primary residence
Beckham Law: The Special Tax Regime, Beneficial for Digital Nomads and Inpatriates
The Special Tax Regime for workers, professionals, entrepreneurs, and investors relocated to Spanish territory, commonly known as the “Beckham Law”, is aimed at workers, both Spanish and foreign, who move to Spain for work purposes or to telework from Spain. According to this regulation, relocated workers who meet certain requirements have the option to choose… Continue reading Beckham Law: The Special Tax Regime, Beneficial for Digital Nomads and Inpatriates
Limitation on the possibility of claiming self-assessed personal income tax in Form 720
The Supreme Court (SC) has restricted the possibility of recovering the Personal Income Tax (IRPF) self-assessed through the Model 720, by closing the State’s patrimonial responsibility. This implies that if the rectification of the self-assessments was not requested in the following four years, it will not be possible to recover the taxes paid. This is… Continue reading Limitation on the possibility of claiming self-assessed personal income tax in Form 720
No capital gains are generated in the dissolution of a singular community of assets
The General Directorate of Taxes (DGT) has issued a relevant resolution regarding the dissolution of a community of assets formed by a single asset, which is allocated to one of the co-owners, who financially compensates the rest of the co-owners. In this context, where excess allocation is inevitable, it has been determined that the taxable… Continue reading No capital gains are generated in the dissolution of a singular community of assets
The notarization by a single joint administrator
The certification had the signatures of both joint administrators, duly notarized. However, only one of them signed the deed of sale, in which the agreement of the administrative body was elevated to public deed. Both the General Direction and the Registrar considered that this violated article 1280.5 of the Civil Code, which requires that certain… Continue reading The notarization by a single joint administrator
Temporary Tax on Large Fortunes extended
The Temporary Solidarity Tax on Large Fortunes is, in principle, no longer temporary. This has happened through Royal Decree-Law 8/2023, of 27 December, adopting measures to deal with the economic and social consequences of the conflicts in Ukraine and the Middle East, as well as to alleviate the effects of the drought, which was approved… Continue reading Temporary Tax on Large Fortunes extended
What tax rate should a non-resident pay for property rentals?
In a scenario before the Central Economic-Administrative Court (TEAC), a discrepancy arises where the Administration does not accept the application of the specific provision regarding expense deduction found in article 24.6 of Royal Legislative Decree 5/2004 (Consolidated Text of the Non-Resident Income Tax Law). This provision is relevant for residents of the European Union and… Continue reading What tax rate should a non-resident pay for property rentals?
The Superior Court of Justice of Madrid has ruled that the deduction for the impairment loss on the loan is valid
In its judgment of January 31, 2024, the Superior Court of Justice of Madrid examines two main aspects. First, the validity of a loan granted by the appellant entity to another entity, as well as the consideration of such loan as uncollectible, which would allow its deduction as a loss in the impairment of the… Continue reading The Superior Court of Justice of Madrid has ruled that the deduction for the impairment loss on the loan is valid
The Beckham Law and its implications on payroll: key aspects
The Beckham Law, formally known as the “special tax regime applicable to workers, professionals, entrepreneurs and investors relocated to Spanish territory”, regulates the taxation, in accordance with non-resident regulations, of the income of individuals relocated to Spain who have acquired tax residence. Since its introduction in 2005, this regulation has been the subject of attention… Continue reading The Beckham Law and its implications on payroll: key aspects