NEW PENALTIES FOR FORM 720

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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TAX BENEFITS FOR WITHDRAWALS FROM PENSION SCHEMES

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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OBLIGATION TO FILE A DECLARATION OF PROPERTIES HELD ABROAD

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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OBLIGATION TO DECLARE INVESTMENTS IN PROPERTY LOCATED IN SPAIN

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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TempleCAMBRIA EXPANDS INTO CUSTOMS REPRESENTATION

In the spirit of innovation and progress to deliver a first-rate service to TempleCAMBRIA’s clients, the firm’s partners, Juan Antonio Rodríguez García and Álvaro Morales Sousa, recently passed the aptitude tests for training as customs representatives granted by the State Agency of Tax Administration, belonging to the Ministry of Finance and Civil Service (Ministerio de…

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SALE OF PRIMARY RESIDENCE. TAX RELIEF FOR REINVESTING

Individuals who receive gains on the sale of their primary residence can be exempt from paying income tax if the vendor is over 65 years old or the gains are reinvested in a new primary residence. The following requirements must be fulfilled: 1. Primary residence a)  The house being sold must qualify as the taxpayer’s…

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TAX RESIDENCY IN SPAIN AND GIBRALTAR (TIEBREAKER RULES)

Spain and Gibraltar have reached a post-Brexit agreement, published on 13 March 2021. This lays down rules for determining tax residency. An individual will be considered a resident in Spain if: the individual spends more than 183 overnight stays in Spain over the course of a calendar year. Periods of sporadic absence (where the person…

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