Since the first of January of 2001 the fiscal situation of IGIC (local VAT of the Canary Islands) has changed. These changes can be summarised in the following way: 1. Business and professional activities are considered to be initiated from the moment that goods or services are purchased with the intention of later setting up a business. This means that the possibility of deducting these costs in tax returns is also brought forward. Before it was only possible to deduct IGIC from the official start of business activities (registering a fiscal licence). 2. The free delivery of products or free…
Sunday, 24 December 2000 00:00


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Planning an inheritance saves money and avoids problems for our future heirs.Assets donated as a gift during our lifetime are subject to practically the same taxation as bequeathing them as an inheritance. A principle of Spanish tax legislation is that payment of taxes is obligatory whenever wealth has increased as a consequence of an inheritance, legacy, donation or encashment of a life insurance policy. That is to say when there is an increase in patrimony (wealth) without a justifiable consideration. To settle any debts with the Inland Revenue various concepts must be taken into account: 1. Tax Base. Thge same…
Friday, 24 November 2000 00:00

The cost of housing

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The cost of housing in Spain is rising in unthinkable proportions. The big questions that everyone is asking are: Will the cost of housing continue to rise? When will it reach its peak so that it can come down again? The experts in the Spanish real estate sector do not have the answers to these questions. According to the Spanish company Tinsa that specialises in real estate appraisals, the average price of new and used housing in Spain has gone up by 14% between June of 1999 and June of 2000. In the Canaries, the prices have risen 22% compared…
Tuesday, 24 October 2000 00:00

Spain the "in" country

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Spain has undergone a remarkable turn-about in the last 25 years. By converting itself into an economic power force. It has caused envy in many European and other countries throughout the world. Prior to democracy, this country was living behind the times, it was poor, culturally underdevelloped and with numerous problems. Many people emigrated to more advanced countries, such as Germany, England, Grace, etc. There have been many positive changes since becomming a democracy in 1975. Our economy is doing well, although, there are still unemplyment problems. Our languageis growing world wide. The arts including writers, actors, painters, musicians, architects,…
Detailed below are very important questions that persons who are thinking of setting up their own business, or that already have their own business, must bear in mind.It is very important not to overlook any of the following points in order to avoid fines imposed by the Government. Company or individual In Spain a business may be set up either as an individual or as a company (normally a limited company must be formed with a minimum of 500.000 pesetas). In order to set up a company there are a series of steps which must be carried out, for example…
Sunday, 24 September 2000 00:00


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In the year 1.995 a Law that deals with the Order of Tourism in the Canaries was approved. This Law that was going to be applied on 19th July of this year had the following objectives: 1. To organise and form the touristic activity just from the business point of view just as much as from the touristic complexes' point of view. 2. To regulate the touristic offer. 3. To conserve, protect and make the most of the the touristic resources of the Canaries in a logical and rational way, with special attention to the environment, the county and the…
The famous expression 'Black Money' seems to be on everybody's lips. However people are becoming increasingly more worried about changing their money from pesetas to Euro's in the sense of not having declared this money.There exists three important periods on the way towards the transition to the Euro:1. Temporary period. From the 1st of January 1999 to the 31st of December 2001. During this period the Euro will not physically exist but it has a fixed exchange rate of 166.386 ptas per Euro. The Euro will be obligatory in certain sectors like exchange rates, the national debt, and also in…
Wednesday, 24 May 2000 00:00


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Setting up a business is not an easy task. The complexity will depend on the type of business we are thinking of creating. Some of the important factors to bear in mind when thinking about a business are detailed below:1. Economic Framework. First of all it is important to think about social and economic aspects (prices of raw materials, income of the population who will buy our product, the cost of mony, the income distribution of our products consumer etc.)2. Sector Analysis, market characteristics and choice of product. We must ask ourselves if we are going to innovate with a…
Before purchasing a property it is necessary to check in the Land Registry to see if it has any outstanding debts to be paid. Once decided on which property to buy the next decision will be on how to finance it. The purchase can take place with the person's savings or financed by the bank which is called a mortgage. This mortgage-loan must be written in public deeds and inscribed in the Land Registry. The mortgage loan can be basically a fixed rate or variable. The main advantage of the fixed rate is that the amount remains the same during…
A law known as Regulating tourism in the Canary Islands was approved in 1995. The regulations which were due to become law in July 1997 were introduced with the following objectives in mind: 1. To regulate and promote touristic activities from the perspective of both the business community and the apartment complexes. 2. to regulate supply and demand in the tourist industry. 3. To conserve, protect and utilise the tourist resources of the Canary Islands in a rational and reasonable manner paying particular attention to the environment, the countryside and the cultural identity of the Canaries. 4. Regulation of regional…
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