The expert accountants, economists and tax advisors at Welex offer professional services both to natural persons and legal entities, whether residents or non-residents in Spain.
Tax and accountancy advice for natural persons who are non-residents in Spain.
- INCOME OF NON-RESIDENTS – PROPERTIES
Are you a non-resident and own a property in Spain? If so, it is important to fulfil all your tax responsibilities and we will be happy to study your case regarding Non-Resident Income Tax, which is an annual income statement.
Even if Spanish property is not occupied and / or rented to a third party, Spanish law estimates an income, and all owners must prepare and submit this personal tax return.
In “Welex” we will carry out your corresponding tax presentation, providing you with the calculations of this yearly tax. We can file the income tax for non-residents as well as make the corresponding payment.
The calculation of Income Tax for non-residents (I.R.N.R) must be prepared each year, as the circumstances of each taxpayer may vary.
During the fiscal year 2015, there was a review of the tax rates applicable to the income of all non-resident taxpayers in Spain who do not have a permanent establishment.
In general, for informative purposes, we are keen to present you the following scheme explaining the figures of this tax in Spain:
Our Law Firm of tax advisors in Marbella can calculate your tax, fill in your returns and make the payment of the corresponding taxes.
We can also advise you on any fiscal, legal and accountancy matter.
2. WEALTH TAX IN SPAIN
The Wealth Tax has been reactivated provisionally for the years 2011, 2012, 2013, 2014, 2015 and 2016.
When must the Wealth Tax be paid?
- The wealth tax must be paid on the 31st of December of each fiscal yearIs there a minimum exempted of payment?The tax base will be reduced as a minimum exempt at 700.000 euros.Is there an obligation to file for the Wealth Tax even if the net value of my property in Spain is less than 700.000 euros?Taxpayers whose resulting sum needs to be paid are obliged to file the return. Also those value of assets and rights is higher than 2.000.000 euros, even when the quota is negative, are obligated.Tax and accountancy advice for legal entitiesWelex, your Law Firm and team of economists in Marbella, is specialised in providing tax and accountancy services for both small and medium-sized companies.The tax advisors of our Law Firm provide tax advice and are at your disposal for the preparation and filing of the following returns:
- Value added tax (VAT).
- Income tax for natural persons (withholdings and payment in advance of the income of work, of certain economic activities).
- Income tax for natural persons (withholdings and payment in advance of certain income or income arising from rentals).
- Returns of instalment payments of the corporate tax.
- Yearly return for transactions with third parties.
- Yearly corporate tax return.
Accountancy advice for companies in Spain.
- At Welex, we offer professional, personalised service. All our professionals have years of experience in their activity, which they put at your service in order to respond quickly and effectively to your matters.In your business, you must have your accounts up to date, and this task requires qualified people if maximum net benefits are to be reported of the economic activity..It is extremely important to have the knowledge of an expert accountant when your company is a trading company.The formal obligations of companies can basically be classified into three categories:Formal accountancy obligations.The obligatory books that a company in Spain must have are:
- A) The annual accounts, which are made up of the following:
- Balance sheet.
- Profit and loss account.
- Annual report.
The three aforementioned documents must be drawn up clearly so that the information is useful and comprehensible. Information that arises from the annual accounts must show the true image of the company’s equity and results.
B) Journal, in which all operations related to the company’s activity are daily registered.
C) Minutes book.
D) Registry of shareholders of a limited company.
- Related Posts
We also remind the tax rates and exemptions from corporation tax in Spain.
When does a company in Spain have an economic activity?
A Spanish company will have an economic activity when there is self-organisation of the means of production and human resources or one of both with the aim of producing or distributing goods or services.
By WeLex, your efficient accountant in Marbella.
After the start of a new year, it is normal to wipe the sheets clean, but in accounting, this is not possible. Although the accounting year ends – as a general rule, on December 31 – in Spain it is not until July, with the filing of the company tax, when we can finally erase the finished year.
Therefore, the accountant of your company in Spain should work hard at the end of each finantial year in order to start the procedure to close the accountancy books. In general, it is appropriate to point out the existence of three stages of great complexity and precision that constitute the phases of accounting closing and fiscal closure. These are:
1º Accounting closing.
2º Presentation of accountancy books and annual accounts in the Mercantile Register.
3º Presentation of Spanish company tax form.
To better understand its performance today, we are going to focus on accounting closing, and, in subsequent blogs, we will be looking more closely at the presentation of accountancy books and annual accounts in the Mercantile Register and the presentation of company tax.
- ut what is understood as a property company in Spain and those that are considered to carry out an economic activity.
Practical cases. How are the following Spanish transactions levied? With VAT or the so called Transfer Tax and Stamp Duty?
How is the purchase of a second hand computer levied that is purchased directly from a private owner or at an online shop?
In case of purchasing the computer from the private owner, the purchase will be subject to the Transfer Tax.
Should your purchase at an online shop or in a normal shop, then Spanish VAT must be paid to the seller.
A business director sells second hand furniture that he has purchased 10 years ago.
Do you wish to expand your business in Spain? After having studied the possibilities in the market, the location, the local legislation, there is a series of steps to follow in order to open a branch in any municipality in Spain.
A branch in Spain is a secondary establishment of a company, with certain independency, but depending on the foreign parent company. The aim is to carry out activities of the company, which is then non-resident in Spain. The steps to follow when creating a branch of a foreign company in Spain is a series of requirements we set out below:
The Spanish tax system has the so-called Business Activities Tax (the Spanish IAE). This is a tax managed by the Spanish Tax office and encumbers the execution of any kind of activity in Spain, whether natural persons or legal entities carry out this activity.
If you think of starting an activity in Spain, under the Special Regime of the Self-employed workers or of incorporating a company, you will have to choose the correct section of your activity as well as pay the Business Activities Tax.
The Spanish Business Activities Tax is regulated by the Order HAC/85/2003, of January 23rd, which determines in which cases the self-employed and companies are subject to this Tax. The communication depends on the sum of the total invoicing of your Business in Spain and on whether you have declared already some information to the Spanish Tax Office on said sum.
The VAT in Spain. When you have an activity or business in Spain, you will be subject with great certainty to one of the most complex tax there is in the Spanish tax system.
The Spanish VAT is a tax that was introduced in the Spanish tax system by the left socialist workers party (Partido Socialista Obrero Español of the Spanish PSOE). It was created in 1986 when the Spanish market needed to adapt to the ones of the European Union.
The creation of the VAT in Spain meant an increase in tax revenues and made it easier to abolish border controls within the European Union.
The tax rates of VAT are as follows:
- General tax rate: 21%
- Reduced tax rate: 10%
- Super reduced tax rate: 4%
VAT in Spain
Any business trading with another European country which belongs to the European Union (EU) must be aware of the Tax implications
A special tax system regulates these transactions and they are subject to certain rules and obligations. If your business qualifies to obtain the European VAT number, the VAT rate to be applied on the transaction will be zero or even on specific cases considered exempt from VAT – but this will depend on each case.
The first step that a business must take when the decision has been made to start trading with another European country belonging to the EU will be to formally request at the Inland Revenue to be registered with the European VAT number.
Standard Inland Revenue Procedure:
- Check that the entrepreneur/business has its activity correctly registered.
- Check by way of a personal visit that the premise where the activity takes place is real.
- Check that all the Fiscal & Accountancy formalities have been fulfilled.
- What is the Mercantile Registry (Registro Mercantil) in Spain and what formalities can or must be done at this Registry?
You may have heard more than once about Spain’s Mercantile Registry—Registro Mercantil in Spanish. Today we would like to clarify some frequent questions that arise on this subject. For example, what exactly is this Spanish Registry and what formalities are done at this Registry?If you own a company in Spain, you must take into account that you are obliged to register your company at this Companies House.
The Companies House in Spain / Mercantile Registry in Spain
The Companies House is an official office of the Spanish State that is a direct extension of the Ministry of Justice. There are Territorial Companies Houses, as well as one, central Companies House.
The Companies House is the entity that maintains security within commercial traffic. How does it do this? It does this through periodic publications on the economic and legal information of both natural persons and legal entities.