Foto de EUROPEAN SAVING DIRECTIVE

06 Marzo, 2015

Written by Dr Crespo
On 1st of July 2005, the ESD(European Saving Directive) came into effect. This is one of the measures of the EUTax Package. This directive is an agreement between the member states of the European Union to interchange information among them automatically about a resident of the EU that perceives amounts described as "savings" in another state of the UE. Only Austria, Belgium and Luxembourg will not give information (during a transitory period) but will practice a retention at source in the payment , being increased progressively. All EU States have joined the ESD and further: • dependent territories of the British Crown ( Channel Islands, British Virgin Islands, Turks and Caicos Islands, Cayman Islands. ). • dependent territories of the Dutch Crown (the Dutch Antilles, Aruba) • third countries like Switzerland, Andorra, Liechtenstein, Monaco and San Marino. For those who have...

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Foto de INHERITANCE

06 Marzo, 2015

Written by Dr Crespo
This guide do not substitute professional advice, which we will be happy to provide on request. IntroductionOver 500,000 British people have an interest in a holiday home in Spain. More than 4,000,000 take holidays in Spain each year. Some stay to start businesses, to retire - or just to enjoy the sunshine. When they die, most will leave assets in Spain that will need to be transferred to their heirs.The basic approach to dealing with an inheritance involving assets in Spain is the same in all cases:1. Establish what assets exist in Spain 2. Establish which law should apply to the inheritance 3. Establish whether there was a valid Spanish will 4. Establish whether there is a valid English or other will covering the assets in Spain 5. If there is no valid will, work out who is entitled to the assets 6. Complete the documentation needed to transfer title of the assets in Spain to the persons...

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Foto de LAW ON TAX FRAUD

06 Marzo, 2015

Written by Dr Crespo
Law of 7/2012 of 29th of October 2012 to fight tax fraud. The Spanish Parliament has issued a new law published in the official paper on the 30th of October 2012. This Act is the counterbalance of the former decision of the Spanish Government to provide a tax amnesty. The Spanish voluntary disclosure procedure, not officially named “amnesty”, is accessible to any individual or company, either resident or non-resident in Spain and who has undeclared income or gains on the 31st of December 2010. In general, those already subject of an investigation are not be able to benefit from this. Those taxpayers choosing to implement the amnesty must present a tax return informing of the assets and income to be declared and a 10% tax payment of 10% of the undeclared assets by the 30th of November 2012. This tax return is not subject to further tax and the taxpayer is released from any...

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Foto de PLANNING IN THE CASE OF FUTURE INCAPACITY

06 Marzo, 2015

Written by Dr Crespo
The reality is that we are living longer and that there is a chance that during our latter years of life we will live with our mental faculties diminished. In addition, there is an increasing number of brain injuries and illnesses due to accidents and degenerative diseases brought upon us from earlier years. What to do in this case? This is a question that we should all ask ourselves since it is something that one day will affect us. We must decide what we should do while we our mental capacity is still perfect. Sometimes, such as in the case of Alzheimer sufferers, the patient is often unwilling to accept that he/she will lose their mental capacity. They remain confident that even with losses in their mental capacity they will still be able to govern themselves. However, this disease and other evolving diseases that progress rapidly, before the patient realises it they are in such a deteriorated...

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Foto de POWER OF ATTORNEY

06 Marzo, 2015

Written by Dr Crespo
POWER OF ATTORNEY This guide do not substitute professional advice, which we will be happy to provide on request. What is a Power of Attorney? A Power of Attorney is a formal legal document by which you give someone else the power to do certain things on your behalf. Why do I need a Power of Attorney? Under Spanish law many documents that, in this country, would simply be signed in front of a witness need to be signed, in Spain, in front of a Notary Public. It is often inconvenient for the parties to attend in person before the Notary. They will often, therefore, decide to grant a Power of Attorney in this country, authorising a named person to sign on their behalf in Spain. In Spain there are also certain things that can only be done on your behalf by somebody having a Power of Attorney. Many of these do not need a Power of Attorney when they are done in England. These include the...

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Foto de SELLING A PROPERTY IN SPAIN

06 Marzo, 2015

Written by Dr Crespo
This guide do not substitute professional advice, which we will be happy to provide on request. Valuations of property You will have to decide the price to ask for your house. We can arrange for a valuation to be carried out if you would find this of assistance. The valuation can either be a low cost valuation carried out by an Estate Agent or it can be an official valuation, for which a substantial fee will be payable. The former type of valuation is usually sufficient. Choosing an Estate Agent We can help you to find a convenient Estate Agent. What price should I show in my contract? For many years there has, in Spain, been a practice of showing in the contract a price less than the actual price agreed for the sale. This can, initially, save both the Buyer and the Seller some tax, but it can lead to a lot of problems later. Not surprisingly, the authorities have tightened up on this...

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Foto de UK LIMITED COMPANIES OWNERS OF A PROPERTY IN SPAIN

06 Marzo, 2015

Written by Dr Crespo
Transferring your Spanish property to a UK limited company. 1.- How much is the tax in Spain to transfer the Spanish property to a UK limited company? There are 2 taxes: - Capital Gains tax for the transferor (the person that in exchange of the house receives shares of the UK company). This is 21% of profits (if transferor is non resident in Spain. If the transferor is resident 21% or more (if the transferor is over 65 there is no tax provided the transferor meets the conditions of the law for total allowance of the tax). - Town Hall Plusvalia. This is a tax to be paid to Town Hall based upon the time the transferor has enjoyed the property and the value of the property in the local rates tax. 2.- How much will the Limited company pay each year in Spain? The limited company has a duty to obtain a fiscal tax number, to appoint a resident representative in Spain and to pay a tax only if...

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Foto de Who is tax resident in Spain ?.

06 Marzo, 2015

Written by Dr Crespo
When you are deemed to be resident for tax purposes in Spain and in the UK, Article 4 of the Double Taxation Agreement between Spain and UK indicates where you should be considered to be resident.(1) For the purposes of this Convention, the term `resident of a Contracting State` means, subject to the provisions of paragraphs (2) and (3) of this Article any person who, under the law of that State, is liable to taxation therein by reason of his domicile, residence, place of management or any other criterion of a similar nature; the term does not include any individual who is liable to tax in that Contracting State only if he derives income from sources therein. The terms `resident of the United Kingdom` and `resident of Spain` shall be construed accordingly. (2) Where by reason of the provisions of paragraph (1) of this Article an individual is a resident of both Contracting States, then his...

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Foto de DECLARATION  OF TAX RESIDENTS IN SPAIN OF ASSETS OUTSIDE OF SPAIN

06 Marzo, 2015

Written by Dr Crespo
The principal features of the regulation are the following:  1.- Duty to declare information of bank accounts outside of Spain. You have a duty to inform the government about any bank account you have outside of Spain, whether you are the holder, representative, beneficiary, authorised, or you have Power of Attorney on the account. You must also declare such accounts even if you have cancelled them during the year. You do not have the obligation to provide the information to the tax department if the global amount of all the accounts outside of Spain do not exceed 50,000 Euros at 31st of December or in the last quarter of the year the average balance does not exceed 50,000 Euros. However, you must provide this information if you have closed the accounts prior to the 31st of December or ceased the position you held on the accounts provided these were declared. When must this information...

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Foto de BUYING A PROPERTY IN SPAIN THROUGH A SPANISH LIMITED COMPANY

27 Febrero, 2015

Written by Dr Crespo
GENERAL QUESTIONS 01. Can I buy a house in Spain through a company? Yes. Any company whose existence is recognised by its own law can operate in Spain acquiring properties. This is also the case with an English Limited Company, an Offshore Company of any offshore territory or the German GmBH, to give some examples. You may also acquire the property through a Spanish company of limited liability (SL). In this case the company is set up before the purchase of the property. Of course, the company is constituted according to the convenience of each client. The foundation of a company in Spain is a right recognized in the Spanish Code of Commerce to all foreigners and this right is also extended to all foreign companies, who may also constitute Spanish companies. The constitution of a Spanish company by foreign founders does not differ from that of Spanish founders. As a foreign investment...

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Foto de CAPITAL GAINS FROM THE SALE OF REAL ESTATE PROPERTY

27 Febrero, 2015

Written by Dr Crespo
This guide do not substitute professional advice, which we will be happy to provide on request. A capital gain as a result of the sale of real estate property is subject to taxation. When a change in property takes place the income is considered due. In general terms, a capital gain is determined by subtracting the purchase value from the sale value. The purchase value is made up of the price paid for the property to which the amount of the expenses is to be added, excluding interest rates, and taxes related to the acquisition, , that have been paid by the present transferor. If the property had been rented, the purchase value determined as mentioned before, must be reduced by the amortization corresponding to the rental period. The sale value is the amount for which the transaction has been carried out, having deducted the amount of the expenses and taxes referring to the transfer which...

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27 Febrero, 2015

Written by Dr Crespo
This guide do not substitute professional advice, which we will be happy to provide on request.   Introduction The information contained in this document relates only to people not resident for tax purposes in Spain. A person is resident for tax purposes if he/she, under other circumstances, is physically present in Spain for more than 182 days in any calendar year. It is impossible to give tax advice without detailed knowledge of your personal circumstances. You should, therefore, treat this document as no more than background reading designed to give you some idea of the structure of the tax system in Spain. We can accept no responsibility for any action that you take or fail to take as a result of reading this document. The machinery of tax collection in Spain The Spanish Authority responsible for the collection of taxes is the “Agencia Estatal Tributaria” (AEAT-Hacienda)....

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Foto de ACCIDENTS

27 Febrero, 2015

Written by Dr Crespo
This guide do not substitute professional advice, which we will be happy to provide on request. Introduction Over 1,000,000 foreigners have a holiday home in Spain. More than 40,000,000 take holidays in Spain each year. Some have accidents. They may be traffic accidents, accidents in bars or hotels, accidents in the street, in swimming pools or in countless other places. Thousands of foreigners work in Spain. Many more have jobs that take them to Spain on business. They may suffer accidents in the workplace or in the course of their employment. Most of these people will require medical treatment. Some will not be satisfied with the quality of the treatment received. All will want to consider making a claim for compensation. They need specialist advice as the laws and procedures in Spain are very different from those to which they might be accustomed in England and there are strict time...

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