Non-resident companies that own real estate in Spain are subject to the non-resident income tax by means of a special tax payable on 31 December of each year and which must be paid in January of the following year.
Tax Law law involves the legal rules which enable the State to exercise its tributary powers. Taxes or contributions are compulsory economic outlays that physical and legal (passive subjects) persons must pay directly or indirectly, and with which the State (active subject) finances its activity for common good.
In Spain, subjects obliged to withhold and pay tax to the Spanish Treasury are paymasters. The issuer of an invoice is not required to inform paymasters whether or not they are subject to the withholding tax or the percentage to be withheld. The person responsible to the Spanish Treasury is the one who receives the invoice, not the one who issued it.
From 1 January 2017, large companies and professionals registered in the VAT Refund Special Regime will be required to use the new system for registering VAT books through the electronic office of the Spanish Tax Administration Agency.
In order to fight tax evasion only foundations respecting legal requirements will be entitled to receive subsidies and fiscal advantages in Spain.
In September 2014, the Spanish government adopted a law to support entrepreneurs; fifteen months later, it is considering adopting seven new measures that will simplify the administrative steps for granting this golden visa or residential permit in Spain.
One of the most important novelties introduced by the reform of the Law on Income Tax in Spain concerns the VAT taxation of a company’s partners engaged in professional activity.
The new fiscal reform in Spain, which will gradually be implemented in 2015 and 2016, will benefit rents bellow 50.000€ and individuals with family responsibilities. Severance pay shall be taxed, the exclusion of the dividends is abolished and the deductible quality of pension plans is reduced.
In its judgment on 3 September 2014, the European Court of Justice (ECJ) declared that Spain had infringed Community law by permitting differences in its tax treatment of the inheritance and gift tax between residents and non-residents in Spain and requires the return of wrongfully collected revenue.
The new fiscal measures that benefit small sized entreprises or SMEs in Spain reduce the Corporate tax to as low as 20,25%.
The Preliminary Law on Fiscal Reform in Spain is creating a much more effective business competition aimed at both self-employed workers and businesses. The Reform proposes changes to tax on companies (TC), tax on the income of individuals (TII), tax agency, and VAT regarding e-commerce.