Larraín Nesbitt Lawyers is a Marbella-based independent law firm specialized in property conveyancing, taxation, litigation, probate and succession. Expert native English-speaking lawyers and economists blend legal and practical advice providing tailored assistance on your matter. Our range of services cover the greater Marbella area, Sotogrande and Costa del Sol.

The firm focuses advising foreign investors on acquiring residential property in Spain both from a legal and fiscal point of view. Our no-nonsense approach to business coupled with our commitment to clients ensures easy-going transactions. We pride ourselves in putting our clients’ interests at the forefront of everything we do.

Larraín Nesbitt Lawyers, your legal partner in Spain.

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Spanish Income & Wealth tax reminder

Raymundo Larraín Nesbitt, June, 2. 2021

Lawyer Raymundo Larraín gives us a gentle reminder on the tax obligations that residents in Spain must face (and in some cases, even non-residents).

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years’ taxation & conveyancing experience at your service. We offer a wide range of 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
8^th of June 2021

I have written this short article as a gentle reminder for all taxpayers resident in Spain.

1. IRPF or personal income tax

Tax residents need to file income tax (IRPF, in Spanish) before the end of this month on their worldwide income & assets.

You are deemed tax resident in Spain if you meet one, or more, of the following points:

You spend more than 183 days in a calendar year in Spanish territory.
Your centre of financial interests is located in Spain.
Your spouse and/or underage children live in Spain.

If you meet any of the above criteria, you should be filing taxes in Spain.

Scores of expatriates have filed for Spanish residency over the last two years, and now need to meet their newly-acquired tax obligations derived from their new tax status.

Deadline to file this tax is end of June 2021.

2. Wealth tax

In addition to the above tax obligation, affluent residents may need to file as well for wealth tax in Spain. As there is devolved competencies on this matter, I won’t go into details as each region is empowered to enact their own laws on this – please seek tax advice from us if it affects you.

Additionally, even if you are non-resident in Spain, but happen to hold a sizeable estate in Spain, you must file wealth tax in Spain.

In other words, and for the avoidance of doubt, wealth tax is paid by both residents and non-residents alike. The difference are the tax allowances at play.

The deadline to submit this tax is also by the end of June 2021.

“The income tax has made liars out of more Americans than golf.” – Will Rogers

William Penn Adair Rogers (1879 – 1935). Was an American stage and film actor, vaudeville performer, entertainer, cowboy, humorist, newspaper columnist, and social commentator from Oklahoma. He was a Cherokee citizen born in the Cherokee Nation, Indian Territory.

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

Larraín Nesbitt Lawyers is a law firm specialized in conveyancing, residency, inheritance, taxation, and litigation. You can contact us by e-mail at info@larrainnesbitt.com, by completing our contact form, or by telephone on (+34) 952 19 22 88.

Taxation services available from LNA

Related tax articles

Spanish Wealth Tax (Patrimonio) – 8th November 2011
Taxes on Selling Spanish Property – 8th December 2014
Changes to Spain’s Inheritance and Gift Tax Law – 21st February 2015
La Complementaria or ‘Bargain-Hunter Tax’ – 8th May 2015
Taxes on Buying Spanish Property – 8th July 2015
Non-Resident Taxes in Spain – 8th December 2015
Spanish Inheritance Tax for Non-Residents (Part I) – 21st February 2016
Spanish Inheritance Tax for Non-Residents (Part II) – 8th March 2016
Non-Resident Income Tax – 8th December 2017
Tax advantages on becoming resident in Spain – 8th March 2018
Non-Resident Imputed Income Tax (Fiscal Representation Service) – 8th October 2018
Taxes on Buying Spanish Property – 8th December 2018
Capital gains tax mitigation on selling (or gifting) property in Spain – 8th May 2019
Tax form 720 – Modelo 720 – 21st of February 2020
Spanish Income & Wealth tax reminder – 8^th June 2021

Article originally published at Spanish Property Insight: Spanish Income & Wealth tax reminder

Please note the information provided in this article 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 separatist politician was harmed on writing this article. VOV.

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Holidaymaker’s demand for holiday rentals outstrips hotels’ with Covid-19

Raymundo Larraín Nesbitt, June, 21. 2021

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years’ taxation & conveyancing experience at your service. We offer a wide range of 50 legal and corporate services. Our team of native English-speaking lawyers and economists has a long track record successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Holidaymaker’s demand for holiday rentals outstrips hotels’ with Covid-19

By Raymundo Larraín Nesbitt
Lawyer - Abogado
21^st of June 2021

The overarching impact of Covid-19 in the real estate market cannot be understated enough. We’ve already glossed over in previous articles its huge impact on buying & selling homes. How buyers are now asking for secluded properties, with large gardens, open spaces, large terraces, from which to live and even work from. Marbella is regarded as a safe destination, far away from large city crowds.

Now with the holiday season upon us, we are witnessing again changes in consumer habits developing new trends. Whereas before over the last years demand was split evenly between hotels and rental accommodations, this year we have witnessed how demand on the latter has clearly outstripped that of hotels to the point it’s reportedly getting harder (and more expensive!) to find private rentals. Holidaymakers shun hotels to avoid large agglomerations of guests out of fear of the virus. They are instead looking to book small privately-run accommodations (holiday rentals). Particularly detached villas with spacious gardens and apartments with large open terraces.

For the first time ever, we’ve witnessed a new trend where holidaymaker’s demand for holiday rentals surpasses that of hotels’. 2020 and 2021 have been horrible years for the tourism industry, particularly hotels have suffered the brunt of the ongoing pandemic. And to make matters worse, the Spanish government has approved on the 1^st of June a massive rise in the price of electricity (up to 50% more) which has translated on average for hotels to an increase of 10% on their fixed costs. Spain’s electricity is the most expensive in all of Europe with a whopping VAT of 21%; every other country in Europe applies a much lower VAT rate i.e. the UK's is 5% VAT.

I take the opportunity to gently remind non-resident landlords offering holiday rentals in Spain that they need to submit quarterly taxes on renting out. Our company offers the following competitively-priced accounting service: Holiday Rental Accounting Service (HRAS)

The main highlight of our tax service is that we reduce landlord’s tax bills by 70% (or more) on applying for tax relief. More on this explained in our taxation article: Save 70% on your landlord tax bill – 8th March 2019. Even our fees to calculate and file these tax returns are 100% tax-deductible.

If you are planning to rent out in Spain, do it legally; contact us to greatly reduce your landlord tax bill.

Larraín Nesbitt Abogados, _small on fees, ^big on service.

Legal services available from Larraín Nesbitt Abogados

Related property articles

Save 70% on your landlord tax bill – 8th March 2019
Spain's new rental law in 2019 – 8^th March 2019
8 Tips for Buy-To-Let Success in Spain – 21^st October 2019
Rentals climb for fifth consecutive year in Spain! – 12^th February 2020

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Andalusia lowers taxes, including Property Transfer Tax and Stamp Duty!

Spanish Property Insight, June, 21. 2021

Spanish Property Insight is a property information website run by Mark Stücklin, author of the Spanish Property Doctor Column in the The Sunday Times (2005-2008), and the book ‘Need to Know: Buying Property in Spain’ published by Collins. SPI is regularly quoted by journalists and the international media as the most authoritative source of independent insider information in English language on the Spanish property market. Its weekly influential newsletter reaches over 50,000 readers, many of which are key players in the industry.

SPI kindly published one of our taxation articles.

Link to SPI's article: Andalusia lowers taxes including Property Transfer Tax and Stamp Duty in move that will boost the market

This article originally published in our website: Andalusia lowers taxes, including Property Transfer Tax and Stamp Duty, in dashing move that will boost the market

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