Taxation
Taxation

Latest Spanish tax developments in force from 2009  

Warning: The information set out below is a general guideline provided by DOMENECH ABOGADOS. Specific advice should be sought before any action in reliance on it is taken, as explained more fully in this website's legal notice.

Important new tax and accounting changes have been brought into force in Spain by Law 4/2008, published in the Official Gazette on 25 December 2008:-

  • Wealth Tax abolition

Spanish wealth tax is abolished both for Spanish residents as well as non-Spanish residents (eg, those living outside Spain who own a Spanish holiday home). 

The measure is effective as from tax year 2008, which means that no Wealth Tax returns will have to be filed in 2009 or subsequent years. Warning: Due to the present economic crisis, Wealth Tax has been reintroduced for year 2011 and Hill remain in place until further notice.

  • VAT refund modification, enabling refunds to be claimed monthly 

While the general system allowing VAT to be reclaimed as at 31 December each year is maintained, new regulations give most taxpayers the option to request VAT repayment at the end of each month.  To benefit from this change, taxpayers should:

a) Request inclusion in the monthly refund registry, by filing an application in November each year (effective for the following calendar year) although, exceptionally, applications for calendar year 2009 could be filed until the end of January 2009;

b) Not undertake activities subject to the simplified VAT regime (which compulsorily applies to certain businesses);  and

c) File monthly VAT returns (instead of quarterly returns) always on-line and regardless of turnover.

  • Spanish Corporation Tax changes

Important changes have been implemented to adapt Spanish accounting to EU international accounting rules, as well as recent EU case-law concerning research and development deductions.

If you have queries on the above, or expect to take a decision affected by the above, you should first contact Margarita Doménech of DOMENECH ABOGADOS (tel: (00 34) 93 415 06 77, md@domenechabogados.com)  

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