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Jose Luis Hernández Socorro

Jose Luis Hernández Socorro

José Luis Hernández
Cargo: Director de Gestiones.com
e-mail: jlh@gestiones.com     
 

José Luis Hernández se licencia en Ciencias Económicas en el año 1.982. Después de haber realizado un máster en Administración y Dirección de empresas (MBA) en Madrid, creó la empresa en 1.986.

José Luis Hernández es miembro del Colegio de Economistas de Canarias, y también miembro activo de la Asociación Española de Asesores Fiscales (AEDAF).

Se especializó en impuestos de personas físicas y jurídicas, así como en consultoría de dirección de empresas.

El equipo de Gestiones.com ha estado junto muchos años y todo el personal tiene una gran experiencia profesional. Hay jefes de equipo, los cuales son responsables de un número de clientes, así como también especialistas en determinados campos de consultoría, impuestos de personas físicas, sociedades, contabilidad, teneduría de libros, IGIC y en general, de contabilidad oficial.

Experiencia y Especialización
José Luis Hernández ha sido socio de la empresa desde hace 19 años y está especializado en impuestos de no residentes.

Experiencia y Especialización
AEDAF significa asociacion española de asesores fiscales de la cual soy miembro activo

José Luis Hernández es miembro de:
Colegio de Economistas de Canarias  www.economistas.org/canarias.htm
Asociacion Española de Asesores Fiscales (AEDAF)  www.aedaf.es

For your own benefit, below we show you the report published on the Spanish Tax Authorities' website regarding the compulsory nature of subscribing to the electronic reporting system for certain taxpayers:

"Beginning on the 1st of January 2011, the Tax Authorities will start sending electronic notifications to certain entities (basically anonymous and limited liability companies) on a binding basis. Nevertheless, required entry into the electronic system will be gradual and will not take effect until the Tax Authorities notify the appropriate parties, individually and by traditional means, about the inclusion in this system.

Once you, as a taxpayer, have been included in this system, you will have to gain access by an electronic certificate or eDNI (electronic identification card) to a Provided Electronic Address (Dirección Electrónica Habilitada, DEH) – electronic mailbox, similar to an email address – in which the Spanish Inland revenue will deposit its notifications. Notification will take effect as soon as the company opens it, and if the company doesn’t check its PEA within 10 calendar days, it will still be considered as notified. Additionally, companies might opt for receiving by e-mail a notice informing them that a notification has been sent to their PEA, although this notice will not be understood as received until the company accesses its PEA.

In short, this is a more efficient and safer system for both parties, as guarantees exist for the interested party receiving the notification, avoiding the costs and troubles of the traditional notification by post or Bulletin".

If you wish to have more information on this important issue on Tax Office notifications, you can contact Gestiones.com so we can give you further details.

Tuesday, 25 January 2011 00:00

More control over non-residents

By the end of last month, December 2010, the Spanish Government approved some changes concerning the non-resident law:

1. CITIZENS FROM OTHER EUROPEAN UNION COUNTRIES can deduct the appropriate expenses required to rent the properties they have in Spain, but it is essential that those who want to enjoy such deductions will have to present an official certificate of tax residence, translated to Spanish so they can prove they are EU residents.

2. IMPUTED INCOMES from real estate properties must be filed during the following year. Imputed incomes are those which arise when a property is empty, or when it has been used by the taxpayer for his own use.

3. THERE IS A 20 DAY-DELAY AFTER EACH QUARTER TO SUBMIT THE TAX STATEMENT. During the first 20 days of April, July, October and January, you must submit the statement concerning the income obtained from your rented properties during the previous quarter. The tax rate will be 24% of net income for EU citizens and 24% of gross income for citizens outside the EU.

4. DEDUCTIBLE EXPENSES. Only expenses related to the property rented will be deductible, always in proportion to the days the property was rented. For example, if you are paying community fees throughout the year but your property is only rented for 5 months, you are only entitled to deduct 5 months of such expenses and not the whole year.

5. MORE CONTROL will be executed over the rented properties and tax authorities from different countries will exchange relevant information regarding these issues.

6. CADASTRAL REFERENCE. It is necessary to include the cadastral reference number of the property in the tax statement. This is a number that you can see in the IBI receipt (IBI, Local Property Tax).

7. Income from a rented property cannot be set off against any other income. This means that if you own two properties and one of them suffers losses while the other one produces some gains, the gains from the last one can not cover the losses from the first one.

8. Tax statements must be submitted where the property is located, i.e., in Spain.

9. FOREIGN COMPANIES with properties in Spain must submit their tax statements. It is important to know that the Spanish Tax Authorities are entitled to seize properties if corresponding taxes are not paid. OFF SHORE companies that have properties in Spain should pay special attention.

10. If a property is owned by a married couple, both spouses must have their Spanish tax identification number (NIF) and both must submit their tax statements.

11. If a non-resident owner has rented a property only for some months in a year, the income obtained from such months should be included in the tax statement, as well as the part of the year during which the property has been unoccupied or lived in by the owner (imputed rent, the money that one saves on rent by living in one’s own accommodation).

12. Information to be included in the tax statement is the following:
- Owner’s NIF (if more than one owner, all owners’ NIFs)
- Tax number assigned by the residence country to non-resident taxpayer.
- Address, e-mail, postcode, province or region.
- Telephone number, mobile telephone number and fax number
- Cadastral reference number (it appears on the IBI receipt paid every year).

CONCLUSION: There will be more control over incomes obtained by non-residents from their properties in Spain, but it is possible to deduct expenses of rented properties.

Friday, 24 December 2010 00:00

Property expenses for non-residents

Beginning this year, Spanish Tax Authorities allowed residents from other European Union countries who have a property that they rent out in Spain, to deduct all expenses incurred by renting real estate properties. In order to do that, the taxpayers must prove that these expenses are directly related to revenues obtained in Spain and come from the rented property.

In order to calculate net revenue, the following expenses should be deducted:

1. Interests from amounts invested in the acquisition or improvement of assets. This means that, in case the property has a mortgage, interests paid to the Bank can be deducted, but not the amount paid as and for amortization of the loan (capital)
2. Expenses from reparation and maintenance of the property. This refers to those expenses incurred in the maintenance of the property, such as painting, cleaning, etc.... If the expenses are higher than the income, such expenses will also be deductible up to an amount equal to the obtained income, but any additional amount should be deducted during the following four years.
3. Rates (IBI = local property tax, trash expenses, etc...)
4. Amounts paid for personal services. Laundry and cleaning services, fees paid to travel agencies because of their involvement, etc…
5. Amortization of the property. An amount equal to 3% of the value of the property (the assessed value or the value declared in the deed, whichever is the highest). It is important to know that, in order to determine the percentage of deductible expenses, it is necessary to consult, in the IBI tax receipt, the proportion between the deductible value (3%) and the value of the land, which can never be deducted as an expense.

SUMMARY: For the first time the Spanish Tax Authorities allow non residents to deduct expenses incurred from renting their properties.
This is a great achievement and is fair, as non residents were being discriminated against compared to residents, who were entitled to deduct all the expenses associated with renting their properties.
Therefore, in order to pay less while still abiding by the law and avoiding problems with the Tax Authorities, it is advisable that

1. The expenses should be those required to rent the property (and no other kind of expenses)
2. A correct invoice should exist. It is important to remember this as the inspectors will reject any invoice that doesn't show the information related to the issuing person or company (name of company or person, NIF (identification tax number) and identity information of the non resident owner (name and surname, NIF (Foreign identity card), exact address, etc…)
3. Proportionality. Expenses will only be deducted in proportion to the time the property is rented; for example, if a property is rented only 3 months in a year, the total expenditure for that year, for community purposes, will not be totally deductible, but only the proportion of 3 months during which the property was rented.
4. File the tax return every three months, for the income and expenditure of the previous quarter. The submission period will be for 20 days following each quarter and in the months of April, July, October and January, regarding the previous quarter.

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