Individuals who change their tax residence to Spain due to their move to the country have the option to pay taxes according to the special provisions of article 93, paragraph 2 of the Personal Income Tax Law 35/2006. Consequently, despite their tax residence in Spain, they will be subject to non-resident taxation according to the… Continue reading Tax advisor: Is it interesting to take advantage of the Beckham Law?
Tag: Personal Income Tax
Tax advisor: The General Directorate of Taxes analyzes how the unilateral salary reduction, annulled by the courts, is taxed in the Personal Income Tax
The binding consultation of the General Directorate of Taxes (V1227-23) dated May 10, 2023, analyzes the taxation in Personal Income Tax (IRPF) of a salary reduction unilaterally imposed by a company and subsequently annulled by a final court ruling, when the company subsequently pays the corresponding arrears and interest. The earnings that the individual receives… Continue reading Tax advisor: The General Directorate of Taxes analyzes how the unilateral salary reduction, annulled by the courts, is taxed in the Personal Income Tax
Tax advisor: The General Directorate of Taxes analyzes the concept of enhancement to duly measure capital gains in Personal Income Tax
The General Directorate of Taxes has addressed the comparison between the concepts of improvement and repair in relation to the amount of capital gains in Personal Income Tax (IRPF) at the time of the sale of a property. This is evidenced in its binding consultations (V0229-23) dated February 13, 2023 and (V0349-23) dated February 20,… Continue reading Tax advisor: The General Directorate of Taxes analyzes the concept of enhancement to duly measure capital gains in Personal Income Tax
Tax advisor: Is it necessary to have an employee for renting to be considered an economic activity?
The great interest of savers and investors in real estate assets has tax implications in Spain, as it is necessary for real estate leasing activities to be considered as an economic activity. Without this qualification, tax benefits such as exemptions and tax burden reductions are lost. For example, in the case of Personal Income Tax… Continue reading Tax advisor: Is it necessary to have an employee for renting to be considered an economic activity?
Tax advisor: Tax Authorities allow to deduct the pension plan in the Personal Income Tax for several years
In 2023, the Directorate General of Taxes (DGT) has modified its criteria and now allows to apply a 40% reduction in the IRPF for withdrawals of different pension plans in several years, not limited to the same tax period. This is evidenced by more than 150 binding responses to taxpayer queries issued during this year,… Continue reading Tax advisor: Tax Authorities allow to deduct the pension plan in the Personal Income Tax for several years
Tax advisor: The economic-administrative courts order reimbursements of the Personal Income Tax for contributions to former mutual insurance companies
The economic-administrative courts now recognize the right of retirees who previously made contributions to the former mutual insurance companies. These retirees can deduct 25% of those contributions from the Personal Income Tax base and also claim reimbursement of the overpayments from the Treasury in their income tax returns for the last four years, periods that… Continue reading Tax advisor: The economic-administrative courts order reimbursements of the Personal Income Tax for contributions to former mutual insurance companies
Tax Advisor: The Supreme Court annuls the obligation to file Personal Income Tax return electronically
The Supreme Court has annulled the obligation imposed by the Ministry of Finance in March 2019, which required all IRPF taxpayers to file their Income Tax Return electronically. Following the ruling of July 11 of this year, taxpayers may choose to file their return on paper if they so wish, without being obliged to do… Continue reading Tax Advisor: The Supreme Court annuls the obligation to file Personal Income Tax return electronically
Tax advisor: Treasury raises the exemption for travel expenses to 0.26 euros/km in the Personal Income Tax
In today’s BOE, the Ministry of Finance has published an update of the compensation for mileage expenses for those who use a vehicle in their work. The compensation will increase immediately from €0.19 to €0.26 per kilometer, which represents an increase of almost 37%. This compensation includes fuel, vehicle wear and tear and possible breakdowns,… Continue reading Tax advisor: Treasury raises the exemption for travel expenses to 0.26 euros/km in the Personal Income Tax
Tax Advisor: The Supreme Court prohibits holding a minor with no income responsible for the tax debts of his parents in the form of joint Personal Income Tax taxation
The Supreme Court, in a sentence advanced in a note of the Judiciary, has determined that the Treasury cannot make a minor with no income jointly and severally liable for the tax debts of his parents in the modality of joint taxation of the Personal Income Tax (IRPF) of the family unit. The ruling is… Continue reading Tax Advisor: The Supreme Court prohibits holding a minor with no income responsible for the tax debts of his parents in the form of joint Personal Income Tax taxation
Tax advisor: The Supreme Court clarifies the recovery in the Personal Income Tax of contributions to old labor mutual insurance companies.
The Supreme Court clarifies the IRPF recovery process for retirees who made contributions to old labor mutual funds. It is established that the part of the current pension corresponding to those contributions not reduced can be deducted by 25%. This means that the taxpayer must declare in the IRPF his pension, including only 75% instead… Continue reading Tax advisor: The Supreme Court clarifies the recovery in the Personal Income Tax of contributions to old labor mutual insurance companies.