Tax on booze and fags up, no payments over €1000 in cash

The government has announced an important change to a law, and a new budget modification for this Friday. On the one hand, the law limiting payments in cash of over €2,500 will be changed to drop this to just €1,000. This means it will be illegal to pay bills over €1,000 in cash when one of the participants is a fiscal entity (company). And large companies (and those who file their IVA return on a Continue reading

Spain to put up corporation tax

Spain is hunting around for ways to avoid a whopping EU fine for having broken government financing rules, and hence a change to corporation tax has been announced. But it’s  complicated and somewhat fussy way of doing things, and designed just to bring in more money for 2017. The 2012 change to corporation tax will be modified again. Large companies will be expected to pay a percentage of the tax on expected profits in advance Continue reading

Tax revenues collapse in the province laid bare

The collapse of the Spanish economy caused a massive drop in the amount of taxes collected from across Spain. But a new study by the association of tax inspectors Gestha has laid bare the true cost to Spanish coffers. Almería was -and continues to be- one of the provinces which was most affected by the bursting of the economy bubble in 2008. This was most evident in 2012, when the province had the highest unemployment Continue reading

EU investigates Spain over the foreign asset declaration form 720

Remember the foreign asset declaration form? The infamous “modelo 720” which obliges residents to declare all major assets outside of Spain, such as bank accounts or a house back in Blighty. You can be fined a vast amount for not declaring these assets. If you don’t file the tax form being obliged to do so, or file it incorrectly, you get fined €5000 per mistake, with a minimum fine of €10.000. And if you don’t Continue reading

Inheritance tax changes for non-residents as from 2015

As from 2015, the Spanish law on inheritance and donations (ISD) will change to give non-residents the same rights as residents. The change came after Spain lost an EU court battle to apply a higher rate of tax on non-residents who died leaving assets in Spain. The EU court said that the ISD (Impuesto sobre Sucesiones y Donaciones) was discriminatory and against free movement in the EU. The ISD is one law across all of Continue reading

Tax Office in mass survey to find illegal swimming pools

The Tax Office (Hacienda) is carrying out a mass survey across the province to detect undeclared property improvements such as swimming pools and extensions. As these things are found, your property value will be automatically updated and your annual IBI will be increased, as well as other taxes based on property worth. The survey, which is also going on in other parts of Spain, will be completed by 2016. Whether they will attempt to count Continue reading

Mojacar residents suffer highest tax burden in province

Mojacar residents suffer the highest tax burden in the province, according to the latest tax data released by the Ministerio de Hacienda. The data reveals that the average Mojacar resident in 2013 had to pay the townhall €1.240,40 a year in direct taxes (impuestos directos). The next highest village, Turillas, levies just €844 per head a year. Almeria city residents pay just €451.55, for example. The breakdown shows why: Mojacar had (for 2013) an income Continue reading

Spanish football clubs owe 564 million euros in unpaid tax

And Hacienda is going after them. La Liga, the organisation that represents football clubs, earlier this week released a statement saying that its members had paid 165 million euros this year towards unpaid back tax, but Hacienda has now released a counter statement saying they’ve only paid 99 million euros so far, and they still owe 564 million. That’s excluding the football clubs in Pais Vasco and Navarro, as those regions control their own tax Continue reading

Wealth tax will be abolished next year, but IBI to go up

Wealth tax will be abolished ahead of the 2015 elections, but IBI (Spanish tax on property) looks likely to go up again to compensate. That will annoy the hundreds of thousands of expat property owners who will see their IBI tax possibly double or triple. The wealth tax is known in Spanish as impuesto del patrimonio and is administered by the regions. It was originally centralised in 2008, but was returned to the regions back Continue reading