Before Brexit, British holiday home owners in Spain could spend long periods there without any legal impediments. Everything changed on 31 January 2020 when the UK officially became a non-EU country and its nationals became subject to the rules on stay in the Schengen area. Since then, a UK national can spend…
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A property in a state of proindivisión, commonly known as pro-indiviso, is one that is under co-ownership, in other words, it belongs to several individuals and has not been physically divided between them. Those individuals do not exclusively enjoy a part of the property, instead all of them -in theory- own the whole property, enjoying…
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This is a question often asked by customers who come to our office looking for advice. In this article we will try to explain the current situation so that you can plan the best way of transferring your assets to your loved ones. In Andalucía inheritance tax has reduced considerably since the Partido Popular (Spain’s…
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The Costa de la Luz is blessed with beautiful white villages, endless unspoiled beaches, an average of 330 days of sunshine a year, stunning natural parks and protected areas that prevent urban sprawls along the coast, and many fascinating ruins and relics from the past. Not everything is perfect though. Unfortunately, our government is not…
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Holiday rentals are undoubtedly a profitable investment, especially in tourist areas such as the Andalusian coast. In order to rent out dwellings for tourist purposes in Andalusia, it is essential to obtain a licence. The requirements for obtaining such a licence are as follows: To have an occupancy licence, duly granted by the pertinent city council. They…
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Investing in cryptocurrencies is becoming increasingly popular due to their high long-term profitability, especially by hiring expert brokers to effectively manage this highly volatile asset. According to the Spanish law on the prevention of money laundering, a virtual currency is a digital representation of value that is neither issued nor guaranteed by a central…
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Up until January 2022, Spanish tax legislation provided for heavy penalties for failure to file Form 720, filing with erroneous information or late filing of the Form 720. The amounts of these fines were 5,000 euros for each missing, incomplete, inaccurate or false bit of information or set of information, with a minimum of 10,000…
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There are four ways of redeeming a pension scheme: in the form of capital, in the form of income, in the form of an annuity or in mixed form. Pension schemes are taxed in the same way as earnings, but they can be subject to a 40% tax reduction if certain requirements are met. Firstly,…
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Spanish residents who hold properties abroad worth over €1,502,530.26 in total -or when the recipient of such investments are territories or countries classed as tax havens, regardless of worth- must declare them with the Ministry of Economy’s Investment Register (Registro de Inversiones del Ministerio de Economía) by submitting form D-7A. The deadline for this declaration…
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When a non-resident buys a property in Spain, as well as declaring property transfer and stamp duty tax (Impuesto de Transmisiones Patrimoniales y Actos Jurídicos Documentados) and/or VAT tax, they must file a declaration of this investment with the Ministry of Economy’s Investment Register (Registro de Inversiones del Ministerio de Economía) when the total amount…
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