Gestiones

It’s believed, since nowadays it’s impossible to give an exact amount, that in Spain there are around three millions of uninhabited properties. The Spanish Exchequer is aware that in a lot of cases those properties are being rented, but the revenues are not being declared. The Government has being creating a plan against tax evasion, in order to allow the Autonomous Communities to start with the controls through computer method to people and companies that, although they own properties, they declare themselves free. The method will consist in identifying the properties which revenues are not being declared, with the cooperation…
It is advisable to keep up to date with all the fiscal, accountancy and legal obligations of your company when doing business in Spain in order to avoid unnecessary fines. The alleged unawareness of a tax law will not be considered as reason enough to avoid the consequent problems with the Spanish Tax Authorities. In short, it is your obligation to keep yourself informed. Individual or Company?. Firstly, clarify that you may do business in Spain, either as an individual person or businessman, or as a corporation (limited company) or Private Civil Company. In order to decide on one or…
The tax obligations of any individual or company and especially those arising from international business activities can often prove to be rather complicated, reason being that more than one country is involved, which is generally the country where the business is located, or place of residence in the case of a person and the country where the business transaction, industry or taxable activity is carried out. The interior fiscal regulations of the countries involved are insufficient to define the tax obligations of companies that undergo taxable business activities abroad. Spanish fiscal law has very specific regulations for each kind of…
Wednesday, 25 August 2004 00:00

Companies with properties for rent

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Since the 1st of January any company owning property for letting purposes has a clearly defined tax law. These are the so-called "patrimonial companies". In the following we will explain the characteristics of this kind of company and their different fiscal treatment when compared with normal companies that undergo a more clearly defined economical activity (for example industrial, commercial or professional activities, etc.) Considerations 1. To ascertain that we are indeed looking at a patrimonial company, firstly its balance sheet must be studied in order to verify: That more than 50% of the company's assets (property owned by the company)…
The Inland Revenue is all set to receive information from Spanish Notaries and Registrars. The Spanish Tax Authorities and the "Catastro" (Cadastre, or Official Statistical Centre of Property Values in Spain) announce their intention to join forces and clamp down on real estate fraud, just when the fight against fraud together with the further control of property conveyance arise as electoral projects. An announcement published yesterday by the Official State Bulletin "BOE" states that these organisms will have reciprocal access to their respective data bases. The resolution promises a "stable data-exchange system" that will facilitate the detection of undeclared sales,…
The Canary Island Investment Reserve entered into effect in the year 1994 following a long period of elaboration and with the approval of all the political forces. The fiscal benefits included in this scheme were mainly justified by the geographical location and economical situation of the Canary Islands and by a long tradition of fiscal incentives applicable regarding the economy of the islands. During the course of the past years the Canary Island Investment Reserve or “RIC” has become an important part of our economy to which we owe a considerable part of our economical growth. It has also promoted…
Thursday, 25 September 2003 00:00

It's time to get in the picture

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The time has come to get into the picture regarding your tax obligations. To summarise your tax obligations we have made the following distinctions: Individual residents. Individual non-residents. Companies. Residents You are obliged put in a tax return between the 1st. Of May and the 30th of June. You are liable for taxation on: Earned income received from employment, wages, pensions, etc. Income on invested capital (interest from bank accounts, dividends on shares, savings etc.) Income on real estate (property lets, business premises, etc.) Income from commercial activities (all kinds of businesses) Patrimonial income. A common mistake of resident foreigners…
Tuesday, 25 March 2003 00:00

Spain and the war in Irak

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Summary of the Consequences of a War: Humanitarian disaster and the rebuilding of Iraq. The time has come for the developed countries to help Iraq recover from the vast humanitarian disaster that has befallen the Iraqi population. A country totally destroyed by the effects of the war must be added to the enormous loss of innocent human lives. The costs of the War: Now the question arises of who will cover the costs of the war. The US is incurring in considerable expense (more than 100.000 million dollars) that it will try in some way to recover. It seems that…
I would like to draw your attention to the new tax laws that became effective as from 1st. January 2003 aimed at companies with no objective or activity other than to own real estate. The purpose of this Law is to give the government greater control over this type of company and also to make their tax situation clearer. Gone is the so-called "fiscal transparency" previously applicable to these owning companies and also to professional artist's companies. These companies will no longer transfer the revenue to their partners. This means that once the corporate income tax is paid (originally levied…
The information regarding economic transactions of businessmen and professionals are recorded in documents denominated invoices. Incoices should be made to be clear and concise, as to the contrary they will not be deductible from the income of the businessmen or professionals concerned, or to put it another way, if they are incorrectly issued, they will not be accepted as legally valid. What is more, if a consumer wanted to make a claim for poor servide or to return a product, an incorrect invoice will not be considered valid. Invoiices are also necessary to be able to deduct the IGIC (the…
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35500 Arrecife - Las Palmas (Islas Canarias)
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+34 928 800 525
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info @gestiones.com