Both residents and non-residents pay IBI or property tax. In the case of non-residents, there is also an imputed income tax if they don’t rent the property in Spain and a rental tax if they decide to do so. Most municipalities and councils send written requests for property tax payment. In those letters you can find more information about where and when to pay the IBI in order to avoid any additional charges or fines.
Less fiscal advantages in Spain in 2017
The updating of the cadastral values that the Government approved for 2,452 municipalities that requested it, has come into force. In the case of 1,985 localities, this will result in an increase in the Property Rate (IBI) in cities such as Valencia, Granada, Cordoba or Cadiz, while it will fall in Santander or Almeria, unless the corresponding consistories changes the types so that there is no differences with 2016.
In municipalities like Alcaucin, Frigiliana or Periana the IBI will increase, but in others, like Alfarnatejo, Almachar, Benamargosa, Canillas de Aceituno, Canillas de Albaida, Colmenar, Competa, and Macharaviaya the IBI will be reduced.
The Spanish Tax Authorities have suppressed multitude of deductions for the companies in order to enhance the tax collection in 4.6 billion. Although many of the deductions for the companies already disappeared in December of 2016, others entered have just entered into force. Now companies can not apply for the exemption for dividends of a foreign company that is in a tax haven, as long as it does not belong to the EU. Likewise, if the ownership of one company in another is significant, that is, it represents more than 5% of the capital or exceeds 20 million euros, and when selling it generates losses, these no longer deduction, since in case there were any profits,they wouldn’t be taxed either.
Another disadvantage is that negative income from permanent establishments abroad can no longer be integrated into the tax base. Likewise, the decreases in the value of the trading portfolios by their valuation at a reasonable price, which have an impact on the profit and loss account as established by the accounting standard, will not be deductible, except up to the amount of the previous value increase integrated in the tax base. If you find yourself in one if these situations and are looking for an accountant and solicitor, don’t hesitate to contact us. We will inform and help you with your tax and legal issues in the area of La Axarquia, so you don’t find yourself in future trouble and problems.
