Modifications in the Spanish Personal Income Tax in for 2018
Are you a tax resident in Spain? Then, you should take into account the following changes that were made by the Royal Decree 1074/2017, of December 29th, which modified the Regulations of the Personal Income Tax in Spain. We refer to the so known “Impuesto sobre la Renta de las Personas Físicas”.
The five most relevant modifications made by the Regulations of the Personal Income Tax are as follows:
• An increase to the exemption amount of public scholarships for study. The current exemption of 3,000 euros was increased to 6,000 Euros, which increases to 18,000 euros / year, if the scholarship also covers accommodation and transportation costs. Even the scholarship itself will be exempt, if the courses are taken outside of Spain. Doctorate scholarship courses will be exempt for 21,000 euros if they are taught in Spain and 24,600 euros if they are taught outside of the country.
• The study expenses for staff formation that do not constitute remuneration in kind are included with those that are financed by other companies or entities other than the employer.
• The daily amount that is exempt regarding the provision of canteen services, such as restaurant vouchers, a credit card, is increased from 9 euros to 11 euros/day since they are linked to the development of work activity.
• The exemption of the minimum family income by descendants is extended by assimilating them with those who have been attributed their custody by judicial decision.
• The voluntary correction of errors made in the presentation of a self-assessment is simplified.
Modifications in Corporate Tax in Spain for 2018
The tax and accounting advisors of Welex have the pleasure of informing you about the modifications introduced by Royal Decree 1074/2017, of December 29th, regarding the Corporate Tax in Spain.
The regulation of information and documentation on entities and related operations is modified, which incorporates the obligation to present the so-called information country by country.
With regard to withholdings, a new exception is established in regards to the obligation to withholdings in relation to the amounts paid to pension funds by the open pension funds, whose main purpose is to channel the investments of other pension funds.
In regards to the conversion of deferred tax assets into credits enforceable against the tax administration, the regulatory development related this to the compensation procedure and credit payment due to the Public Treasury and thus made it similar to the modifications that were made in the Tax Law from 2016.
Do you have a company in Spain? Do you want to start economic activity in Spain? You will need a tax advisor and accountant. Our law firm and team of economists in Marbella will provide you with expert legal, tax, labour relations and accounting advice to offer you security based on our extensive experience and professionalism. Contact us! Our goal is to offer you excellent service!
Modifications to the Inheritance and Donation tax in Spain
This same Royal Decree introduced a series of modifications to the inheritance and donations tax in Spain as well. In the case of inheriting real estate, the content of the tax declaration is extended, which must include the cadastral reference of the inherited properties.
In addition to the above, we must also remember the significant change that took effect on inheritance tax in Andalusia starting on 01.01.2018. See our previous blog for an overview of those changes if they might apply to you.
Reduction for spouse and direct relatives by inheritance in Andalusia:
A reduction of the value of the inheritance will be applied to any amount up to 1,000,000 euros, liquidating the tax for the excess of said amount, provided that the following requirements are met by the taxpayer:
a) Descendants and adopted persons over 21 years or older, spouses, ascendants and adopters
b) That the pre-existing assets are equal to or less than 1,000,000 euros
Do you want to plan your Spanish inheritance for your children? Are you the heir of an inheritance in Spain? Contact our law firm in Marbella for advice. Working with us will allow you to avoid uneasiness and worries.
Contact our office now, and our multilingual staff can assist you in your native language.