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Requerimiento - Spanish tax agency's summons

Raymundo Larraín Nesbitt, March, 7. 2019

Have you received in 2019 a 'requerimiento' letter (tax summons) from the Spanish Tax Office/Agencia Tributaria/Hacienda/AEAT? Don’t panic, contact us ASAP to settle your unpaid non-resident taxes. We will sort out your taxes for a very competitive fee. Remember, you only have 10 days to regularize your tax situation once you receive this letter without attracting supplementary penalties. Contact us!

Blog post and inset photo copyrighted © 2019. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Lawyer – Abogado
8th of March 2019

Come March, the Spanish Tax Office's central non-resident HQ in Madrid, has been busy sending out massively to non-resident property owners tax summons, or ‘requerimientos’ in Spanish legal jargon, similar to this one.

This is a legal notification made by recorded delivery whereby the tax office formally notifies you that you are not up to date with your non-resident tax obligations. In this case they are requesting to be supplied with copies of all non-resident taxes submitted from the year 2014 onwards. The tax office only gives you 10 days to regularize your tax situation in Spain (see inset photo). So, if you submit your backdated taxes as from 2014 onwards, within the 10 days, you will receive no penalty.

Failure to comply will result in them opening a tax inspection against you which may result in very steep fines (50 to 150% of all undeclared amounts) and, depending on the non-declared amount, may even derive in instigating legal proceedings against you.

Non-compliance with the Spanish Tax Authorities will result eventually in them placing a charge against your Spanish property for all the unpaid tax (plus penalties, plus delay interests, plus proceeding's expenses) and they may even seize your Spanish accounts ‘freezing’ them to secure the accrued debt.

Should you receive a similar letter from the tax office, as the one featured in this tax blog, don’t panic. Record the date on which you - or someone else - signed for it and get in touch with our law firm Larraín Nesbitt Lawyers immediately. Time is of the essence to avoid being landed with hefty penalties.

We will calculate and submit on your behalf, in a timely manner, your Non-Resident Imputed Income Tax (NRIIT) and also your Non-Resident Income Tax (NRIT) if you have been renting out your property since 2014 onwards (but not declaring any income in Spain).

As we care to point out in all our tax articles and tax blogs, you are taxed at source on renting out in Spain. So, if you have been declaring and paying income tax derived in Spain only in your home country (i.e. in the UK) you are at fault and must also pay tax in Spain on your Spanish income (e.g. on your rental income). It does not suffice that you only paid income tax in your home country on any income made in Spain. HM Revenue & Customs will give you tax breaks on any tax you have already paid in Spain, following the Double Taxation Treaty signed between the Kingdom of Spain and the United Kingdom.

The reason on why thousands of non-resident expats are now being mailed these tax summons in 2019, to bring their tax situation to date in Spain, is because of the advent of the Common Reporting Standard which we had been warning about over the last two years. More and more, the net closes in on all those expats who are not declaring & paying taxes in Spain.

It should be noted how the tax office is 'positively discriminating' non-resident property owners - they are being treated exquisitely. The fact they are giving you a slap on the wrist and allowing you 10 days to 'sort out' your tax situation - without any penalty - is beyond unusual. Any Spanish tax resident would not be treated with such leniency, and would have received, along with this tax summons, a steep fine to pay. 

One of the many advantages of appointing us as your tax representatives in Spain, is that we will receive all tax-related correspondence generated throughout a fiscal year by the tax office. This is ideal for all those non-resident taxpayers who have limited access to their Spanish mail box. We offer this service at no extra charge with our Fiscal Representation Service.

 

 

We lower by 70% our client’s tax bills, on average, on renting out. What are you waiting for? Call or email us. We make life simple.

 

We offer the most competitive fees in the market.

Non-Resident Imputed Income Tax (Fiscal Representation Service) €90/year

Holiday Rental Accounting Service (HRAS) €100/tax quarter/property

We are specialized in taxation

 

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, conveyancing, inheritance and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form to book an appointment.

Legal & tax services available from Larraín Nesbitt Lawyers:

 

Holiday lettings-related articles

 

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.019 © Raymundo Larraín Nesbitt. All rights reserved.

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Save taxes on selling your Spanish home!

Raymundo Larraín Nesbitt, March, 1. 2019

Selling in Spain? This blog explains how to greatly reduce your tax bill saving you thousands of euros in taxes.

Blog post copyrighted © 2019. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
1st of March 2019

 

Congratulations, you have found a buyer for your Spanish property!

Your first port of call should be to hire a conveyancing law firm, such as Larraín Nesbitt Lawyers, with over 16 years’ conveyancing experience, assisting expats all over Spain.

It is a little-known fact amongst home sellers that you can greatly reduce your tax bill on selling in Spain. This is part of our job as conveyancers. More details in our article: 7 reasons on why you need legal representation on selling in Spain – 7th March 2018.

 

Tax-deductible VAT invoices

 

You may legally deduct all purchase and refurbishment expenses:

  • Lawyer’s fees (on buying the property).
  • Notary fees (on buying the property).
  • Land Registry fees (on buying the property).
  • Taxes (on buying the property).
  • All property-improvements i.e. glass curtains, refitted kitchen, roof retiling, wood flooring, A/C etc.

 

Our law firm can assist you greatly reducing the taxation on your sales proceeds. Why pay more taxes?

Larraín Nesbitt Lawyers can represent you on selling your property in Spain for a very competitive fee. Hiring a lawyer on selling adds security and helps you pay less taxes.

 

 

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in conveyancing, inheritance, taxation and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form to book an appointment.

 

Legal services Larraín Nesbitt Lawyers can offer you

 

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Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.019 © Raymundo Larraín Nesbitt. All rights reserved.

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Andalusia to abolish inheritance tax in 2019

Raymundo Larraín Nesbitt, February, 18. 2019

Blog post copyrighted © 2019. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Lawyer – Abogado
18th of February 2019

Well, I’ll eat my hat. Politicians doing their job, whatever next?

Andalusia’s centre left wing party was ousted from power last December after 37 years in control. With the turn of tide, the new centre-right wing ruling coalition (including a far right-wing party) have agreed in Seville this week to abolish inheritance tax in Andalusia. It won’t actually be abolished – excuse the catchy title – it will be suppressed by 99% on all estates over €1 mn. This translates into only HNWI’s paying a paltry amount on inheriting; the rest of us get to walk away scot-free.

This landmark tax reform is without a shadow of a doubt one of the most important tax milestones in the autonomous region of Andalusia over the last 4 decades (since its inception in 1982). It is the result of a long-winded campaign led by political activists, such as the group ‘Stop Sucesiones’ and other right-wing political groups.

The change translates into 99.99% of inheritors in Andalusia will no longer need to pay inheritance tax on inheriting assets from their parents or spouse, which is a welcome respite. Despite what you may hear, IHT never taxed the ‘rich’ but the hard-working middle class. These fiscal changes are in addition to those approved in 2016 and in 2017 which I had already profusely covered in previous articles and blog posts (see below for related taxation articles).

This bold move allows Andalusia to jump onto the front of the band wagon of other autonomous regions in Spain which are applying reductions on IHT to such an extent which in practice translates to almost suppressing it i.e. Madrid, Basque Country, La Rioja, Navarre, Catalonia, Valencia, Balearic, Canary Islands and now Andalusia too, leading the pack.

Andalusia will officially become in 2019 a tier 1 tax-friendly region for inheritance tax, even surpassing Madrid in some respects. As I had previously pointed out in other tax articles of mine relating to Spanish Inheritance Tax, there was an ongoing movement throughout Spain over the last decade to suppress or greatly reduce inheritance tax to the point of negating it. This trend has finally coalesced into this new regulation.

In a nutshell, inheritance tax will be as follows in Andalusia:

Requirements to benefit from this tax allowance

  • Inheritor/estate beneficiary/taxpayer needs to be EEA/EU-resident.

 Inheritance Tax in Andalusia

  • Pre-existing wealth nil-rate band raised to €1,000,000 (per inheritor).
  • Estates equal to or below €1,000,000 will go untaxed (per inheritor).
  • Estates over €1,000,000 will benefit from a 99% exemption (per inheritor). Meaning you only pay 1% over what exceeds the 1mn threshold.

Who benefits?

  • Group I: natural and adopted children under 21.
  • Group II: natural and adopted children over 21, spouse, registered civil partnerships, parents, adoptive parents, grandparents and great-grandparents.

 

Conclusion

This is as positive as news get. Inheritance taxation had traditionally been Andalusia’s Achille’s heel. It turns out it will now become one of its main selling points! Go figure.

I really do not need to explain how positive this tax news is for Andalusia and the broader market. I never thought I would live to see the day Andalusia led the abolition of IHT in Spain, even surpassing liberal Madrid, but there you go. Times change and the world moves on.

Holding structures incorporated with the sole purpose to mitigate or negate IHT liability will now become redundant in Andalusia following the approval of this change in regulation. This law is expected to be approved over the course of 2019.

For once, I’m happy to commend politicians on adopting a sensible tax measure that benefits legions and contributes towards dynamising the Andalusian economy. Kudos to them!

I don’t want to push my luck, but now that politicians are on a warm fuzzy mood, can we ask them to show some love and adopt a similar programme to Portugal’s Non-Habitual Resident tax scheme (NHR) to attract non-resident investments, particularly British? Pretty please with cherries on top?

“It’s the economy, stupid.” – James Carville

James Carville (1944). He coined this political slogan as campaign strategist of Bill Clinton’s successful 1992 presidential bid against sitting president George H. W. Bush.

Blog originally published at Spanish Property Insight: Andalusia to abolish inheritance tax in 2019

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Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. No delusional politician was harmed on writing this article. VOV.

2.019 © Raymundo Larraín Nesbitt. All rights reserved.

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Holiday lettings: VAT invoice dissected

Raymundo Larraín Nesbitt, February, 11. 2019

Blog post copyrighted © 2019. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Lawyer – Abogado
11th of February 2019

 

In order to claim lenient landlord tax relief from the Spanish Tax Office that leads to a 70% tax mitigation from your tax bill on renting out, your VAT invoice must meet a series of requirements. In Spanish a VAT invoice is called a factura. Many suppliers will be highly reluctant to issue you with one (because they work off the books and do not submit any taxes). Others will hand you a factura just to keep you happy, but it will be missing key elements which make them void i.e. VAT is missing (true case, see examples below). A VAT invoice that misses out on key elements cannot be claimed for tax relief purposes.

By law, you must store all VAT invoices on which you are claiming landlord tax relief over the next 5 years. This is in case you are landed with a tax inspection, where you will be required to produce copies of all VAT invoices you have claimed tax relief on.

Anyone handing you an invoice without VAT is not tax-deductible. Make no mistake, you are in fact paying for that other person’s tax when you are not handed over a VAT invoice. I don't know about you, but I've never fancied subsidizing other people's taxes...

Today's tax blog is going to briefly go over the key elements which constitute a proper VAT invoice (factura).

The Spanish Tax Office lists these requirements in much detail on its web page. In this blog, we are going to simplify and only outline the main points that are required (see the blog’s inset photo, right, as graphical support):

Invoice examples, spot the differences!

Sample of a good VAT invoice

Sample of a non-acceptable VAT invoice

Anatomy of a VAT invoice (factura)

 

  1. Personal details of the invoice provider
  • Full name and surname.
  • Company name.
  • NIF number of trader/service provider; if a company, it’s CIF number.
  • Address.
  1. VAT invoice number. i.e. 37/2019
  2. Personal details of the invoice receiver
  • Full name and surname.
  • Company name.
  • NIF number.
  • Address.
  1. Service date.
  2. Service provided, brief description.
  3. Breakdown of Value Added Tax i.e. 21%
  4. Total amount to pay, including VAT on top.
  5. Company’s rubber-stamp seal (optional)

 

The Spanish Tax Office only accepts you claim tax relief against proper VAT invoices. If the VAT invoice you have been handed does not meet all the above requirements, it will not be accepted, and we will not be able to claim tax relief on your behalf.

We gently remind you that till tickets from supermarkets, commercial centres and petrol stations are not accepted by the tax office as tax-deductible. Only proper VAT invoices such as the one featured above.

 

We lower by 70% our client’s tax bills, on average, on renting out. What are you waiting for? Call or email us.

 

We offer the most competitive fees in the market.

Non-Resident Imputed Income Tax (Fiscal Representation Service) €90/year

Holiday Rental Accounting Service (HRAS) 100/tax quarter

We are specialized in taxation

 

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, conveyancing, inheritance and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form to book an appointment.

Tax & legal services available from Larraín Nesbitt Lawyers:

 

Holiday lettings-related articles

 

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.019 © Raymundo Larraín Nesbitt. All rights reserved.

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How to apply for Spanish residency

Raymundo Larraín Nesbitt, February, 1. 2019

Lawyer Raymundo Larraín explains how to attain Spanish residency.

Blog post copyrighted © 2019. Plagiarism will be criminally prosecuted.

 

 

By Raymundo Larraín Nesbitt
Lawyer - Abogado
1st of February 2019

 

EDIT: March 2019. Due to Brexit-related issues, this procedure has become convoluted and it is strongly advised you hire our residency service: Spanish residency

The following procedure we explain below is only for registration of fellow EU nationals i.e. British national. Any national of a country outwith the EU, cannot follow what we explain below.

British nationals may enter Spanish territory without a visa as we are within the Schengen Area. However, should you remain in Spain for more than 3 consecutive months - by law - you must apply for Spanish residency (residencia, in Spanish). As a EU national, this requires you attain a Certificado de Registro de Ciudadano de la Unión (Registry for citizens members of the Union). The procedure is extremely easy and straightforward.

You must make an appointment at your local the Oficina de Extranjeros (normally 2 weeks' waiting time) and bring the following with you:

  1. Passport in force.
  2. Two copies of the official form (EX-18) completed in Spanish and signed by the EU-national.
  3. Depending on your situation:
  • Employed: signed job contract & other proof.
  • Self-employed: proof of registration in the register of economic activities (Registro de Actividades Económicas), enrolled in Social Security.
  • Unemployed: prove of hiring private healthcare cover and having sufficient financial means to support yourself and your family.
  • Students: prove of being enrolled in an academic course, proof of health cover (public or private), proof you have sufficient financial means to support yourself.
  • Pensioners: proof of health cover.

 

If you meet all the above requirements, you will be issued shortly after with a certificate member of the Union.

So why is all this relevant you may ask? Because post-Brexit, if you did not register yourself as a member of the Union, you will be stripped off a series of rights and entitlements to which you would otherwise be entitled. You may also be regarded as an illegal alien in EU territory by the Authorities, which may even lead to your deportation to your country of origin.

After five years of continued and legal residence, you may apply for permanent residency or residencia permanente. This allows you unconditional residency in Spain.

After ten years of continued and legal residence, you may opt for Spanish nationality (optional).

 

We can offer you this legal service: Spanish residency

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, inheritance, conveyancing, and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on 952 19 22 88 or by completing our contact form.

 

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Brexit-related articles

 

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.019 © Raymundo Larraín Nesbitt. All rights reserved.

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Holiday lettings: “Con factura, por favor.”

Raymundo Larraín Nesbitt, January, 21. 2019

Blog post copyrighted © 2017 and 2019. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Lawyer – Abogado
21st of January 2019

These four simple words in Spanish ('with a VAT invoice, please') can save you a massive amount of money when you pay non-resident taxes in Spain.

Following new EU regulation, all non-resident EU/EEA property owners who lease property, are entitled to deduct from their quarterly tax bill all property-related expenses (Iceland, Liechtenstein and Norway tax residents may also benefit from these generous tax deductions). That is quite a lot of money you can offset, greatly mitigating your tax bill. If you are not EU-resident, you cannot benefit from this.

This is understood as expenses that contribute towards the upkeep of your Spanish property.

Anyone handing you an invoice without VAT, is not tax-deductible. Make no mistake, as you cannot offset this expense you are in fact paying for the tax of this other person. I don't know about you, but I've never fancied paying for other people's taxes out of my own pocket...

You may claim as tax relief all the following expenses, providing you have been issued with a proper VAT invoice (till receipts from supermarkets or petrol stations are not acceptable).

  • Interests arising from a loan to buy the property (i.e. mortgage loan).
  • Local taxes and administrative charges and surcharges that impact on the rental income or else on the property itself (i.e. IBI tax, SUMA tax, rubbish collection tax).
  • Expenses arising from formalising rental contracts such as lets or sublets (i.e. Notary and/or Land Registry fees); legal defence (i.e. hiring a lawyer for tenant eviction purposes).
  • Maintenance costs may be offset; refurbishment expenses (improvements) are excluded.
  • Community of owners’ fees: these receipts have no VAT, by Law.
  • Home insurance premiums: fire, theft, civil liability etc.
  • Property repairs: plumbing, roof retiling, painting, pool pump etc.
  • Utility invoices: electricity, water, gas, internet, and landline.
  • Cleaning
  • Concierge, gardening & security services (i.e. gated communities).
  • Lawyer’s fees: to calculate you quarterly tax returns.
  • Property management fees: to manage your rentals.
  • Advertising expenses: online/offline.
  • Marketing expenses.
  • Home depreciation and amortization. The calculation is 3% on the highest value of the following two: home buying costs or cadastral value; the value of the land is excluded.

 

We lower by 70% our client’s tax bills, on average. What are you waiting for? Call or email us.

 

We offer the most competitive fees in the market.

Non-Resident Imputed Income Tax (Fiscal Representation Service) €90/year

Holiday Rental Accounting Service (HRAS) 100/tax quarter

We are specialized in taxation

 

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, conveyancing, inheritance and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form.

Legal & tax services available from Larraín Nesbitt Lawyers:

 

Holiday lettings-related articles

 

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.017 and 2.019 © Raymundo Larraín Nesbitt. All rights reserved.

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Property portals and rental platforms to pass on landlord details to the Spanish tax Authorities. Are you prepared?

Raymundo Larraín Nesbitt, January, 7. 2019

HomeAway, AirBnb and other property portals and estate agencies have been busy informing their clients they will disclose all their tax details over to the Spanish Tax Office in 2019, retroactively as from the 1st of Jnauary 2018. Are you up to date with your Spanish taxes? Have you been declaring and paying tax in Spain on your rental income? We file taxes all over Spain.

Blog post copyrighted © 2018 and 2019. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Lawyer – Abogado
7th of January 2019

You may have received last December 2018 an email from your property portal or estate agency similar to this one.

Property portals have been scrambling to send frantic emails over the last month to expat clients (‘hosts’, in their terminology) informing them that going forward they will be passing on all their tax details over to the Spanish Tax Authorities as from the 1st of January 2019. They will request you complete a tax form that will be relayed over to the tax office. If you fail to comply, you will no longer be allowed to do business with them.

So what does all this even mean? It means that estate agents and property portals have been forced to turn into whistleblowers reporting all your rental income under threat of heavy fines.

The reason is because new tax laws now force estate agents and property portals to pass on all your (rental) tax details over to the Spanish Tax Office under threat of humongous fines up to €600,000. Property portals and agents must submit a new quarterly tax form (number 179) to the tax Authorities with very detailed information on all their client’s rentals. If you have been renting out in Spain your property over the last year, and have not declared and paid tax on your income, chances are the tax office already knows about it and you are going to be fined.

The details passed on to the tax Authorities will be retroactive as from the 1st of January 2018. However, this does not preclude the fact that the Spanish Tax Office is entitled to collect taxes going back four years (statute of limitations).

In Spain, when you rent out a property you are taxed at source.

In other words, you need to declare and pay taxes on your rental income in Spain, not elsewhere i.e. in your home country. Depending on whether there is a double taxation treaty in force with your home country (i.e. such as with the UK and the RoI), your national tax office will give you tax breaks on the tax you have already paid in Spain.

On being non-resident and owning property in Spain, you are liable for the following two taxes:

  • As a non-resident, when you own property in Spain you should be paying an annual end-of-year tax called Non-Resident Imputed Income Tax (even if you do not rent out your property). More information on this tax here: Non-Resident Imputed Income Tax (Fiscal Representation Service) – 8th October 2018
  • If you do rent out your Spanish property, either long-term or as a holiday letting, you must file in addition to the above, a quarterly income tax declaration. Generous landlord tax relief is available for all EU-residents. More information on this quarterly income tax here: Holiday Rental Taxation in Spain – 8th July 2018.

 

The most interesting part of our taxation service is that if you are EU-resident we can bring down your tax bill by an average of 70%. Ask us.

We offer two different taxation services which are very competitively priced. The service is provided always by native English-speaking lawyers and economists.

Fines for non-payment of tax on rental income range from 50 to 150% of the undeclared amounts, plus delay interests.

Any unpaid tax can be placed as a charge against your Spanish property.

If you are not up to date with your Spanish taxation, don’t procrastinate any longer; contact us ASAP and see how we can help you out. Be pro-active, do not allow the Spanish taxman slap you a huge fine in 2019!

 

We offer the most competitive fees in the market. We file taxes all over Spain.

Non-Resident Imputed Income Tax (Fiscal Representation Service) €90/year

Holiday Rental Accounting Service (HRAS) 100/tax quarter

We are specialized in taxation

 

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, conveyancing, inheritance and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form.

Tax & legal services available from Larraín Nesbitt Lawyers:

 

Holiday lettings-related articles

 

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.019 © Raymundo Larraín Nesbitt. All rights reserved.

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Seasons Greetings

Raymundo Larraín Nesbitt, December, 28. 2018

From Larrain Nesbitt Lawyers we wish all our friends and clients a Merry Christmas and a Happy New Year.

The law firm will now remain closed for the holiday season and will reopen its doors on Monday the 7th of January 2019.

Online service will remain open for urgent queries only.

 

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Did you get an email from AirBnb or HomeAway over your Spanish tax details?

Raymundo Larraín Nesbitt, December, 20. 2018

AirBnb and other property portals have been busy informing their clients that they will disclose all their tax details over to the Spanish Tax Office. Are you up-to-date with your Spanish taxes? Have you been declaring and paying tax in Spain on your rental income? We file taxes all over Spain.

Blog post copyrighted © 2018. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Lawyer – Abogado
21st of December 2018

 

Property portals have been busy sending emails over the last week to expat clients (‘hosts’, in their terminology) informing them that going forward they will be passing on all their tax details over to the Spanish Tax Authorities as from the 1st of January 2019. The details passed on to the tax Authorities will be retroactive as from the 1st of January 2018. However, this does not preclude the fact that the Spanish Tax Office is entitled to collect taxes going back four years (statute of limitations).

In Spain, when you rent out a property you are taxed at source. In other words, you need to declare and pay taxes on your rental income in Spain, not elsewhere i.e. in your home country. On being non-resident and owning property in Spain, you are liable for the following two taxes:

  • As a non-resident, when you own property in Spain you should be paying an annual end-of-year tax called Non-Resident Imputed Income Tax (even if you do not rent out your property). More information on this tax here: Non-Resident Imputed Income Tax (Fiscal Representation Service) – 8th October 2018
  • If you do rent out your Spanish property, either long-term or as a holiday letting, you must file in addition to the above, a quarterly income tax declaration. Generous landlord tax relief is available for all EU-residents. More information on this quarterly income tax here: Holiday Rental Taxation in Spain – 8th July 2018.

 

The most interesting part of our taxation service, is that if you are EU-resident we can bring down your tax bill by an average of 70%. Ask us.

We offer two different taxation services which are very competitively priced. The service is provided always by native English-speaking lawyers and economists.

Fines for non-payment of tax on rental income range from 50 to 150% of the undeclared amounts, plus delay interests. Any unpaid tax can be placed as a charge against your Spanish property.

If you are not up to date with your Spanish taxation, don’t procrastinate any longer; contact us ASAP and see how we can help you out.

Be pro-active, do not allow the Spanish taxman to slap you a huge fine in 2019!

 

We offer the most competitive fees in the market.

Non-Resident Imputed Income Tax (Fiscal Representation Service) €90/year

Holiday Rental Accounting Service (HRAS) 100/tax quarter

We are specialized in taxation

 

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, conveyancing, inheritance and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form.

Legal & tax services available from Larraín Nesbitt Lawyers:

 

Holiday lettings taxation-related articles

 

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.018 © Raymundo Larraín Nesbitt. All rights reserved.

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Non-Resident Imputed Income Tax end-of-year reminder (NRIIT)

Raymundo Larraín Nesbitt, December, 4. 2018

The clock is ticking. This is your last chance to file your Non-Resident Imputed Income Tax for year 2018. If you are non-resident and own property in Spain - even if you do not rent it out - you need to file this end-of-year tax. We file taxes all over Spain.

Blog post copyrighted © 2018. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Lawyer – Abogado
7th of December 2018

 

The end of 2018 fast approaches.

One of our last blog posts for this year, is a gentle tax reminder.

All non-residents, who own property in Spain, need to file by the end of this year a tax called Non-Resident Imputed Income Tax (NRIIT, for short), even if you do not rent out your Spanish property.

We offer the following taxation service for a flat fee of 90 euros plus VAT/year.

We file your tax online within 24 hours.

Our last day to file this tax in 2018 is Thursday the 20th of December.

 

We offer the most competitive fees in the market.

Non-Resident Imputed Income Tax (Fiscal Representation Service) €90/year

We are specialized in taxation

 

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, conveyancing, inheritance and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form.

Legal & tax services available from Larraín Nesbitt Lawyers:

 

Holiday lettings taxation-related articles

 

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.018 © Raymundo Larraín Nesbitt. All rights reserved.

... Read more
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