[UPDATED] MERRY CHRISTMAS

VP ADVISERS WISHES YOU AND YOUR FAMILY THE BEST IN THESE DAYS, A HAPPY CHRISTMAS AND A HAPPY AND PROSPEROUS NEW YEAR.

FELIZ NAVIDAD Y FELIZ 2011

PD: Our office will be close all day on Friday 24th and Friday 31st .

UPDATED: Due to bank holidays, January 6th our office will be close.

TAX CUTS FOR SMEs

Spanish government president, Rodríguez Zapatero, announced tax cuts for small and medium-sized enterprises, and the end to the 426€ benefit for the unemployed as from February in an another anti-crysis measures pack.

Zapatero stressed that the new tax measures were designed to promote investment and employment, especially for SMEs, hence the reduction in corporate income tax by extending the tax base from its current 120,000€ mark to 300,000€. Until now, enterprises with incomes higher than 8,000,000 € were not considered SMEs. Now that limit is set in 10,000,000 €.

The end to the 426€ benefit for unemployed people with no other cover has also been announced. The benefit payments will come to an end in February, when the last extension finishes.

ABOUT DISCHARGING PATIENTS WITH TEMPORARY DISABILITY

Employment Inspection Authority doctors and Social Security National Institute doctors are able to discharge patients with temporary disability as public health care system doctors were doing until now. This new situation is comming into effect from November 26th and its final goal is helping to avoid fraud from workers who are illegaly extending their temporary disable period.

Until now these doctors were only able for making information reports or checking some cases but not for discharging the patients.

This measure is included in Ley 35/2010.

OFFICE CLOSED ON DECEMBER 6th AND 8th

Dear clients, due to Constitution Day and Inmaculada Virgin Day, our office in La Mosca Commercial Centre will stay closed on December 6th and 8th. Tuesday December 7th we will be opened in same opening hours as always (9:30h-14:00h and 15:00h-18:00h). Same for Thursday and Friday.

Sorry for the inconveniences and have a nice holidays.

ELECTRICITY BILL AGAINST TAX EVASION

From the beginning of 2010, the electric companies are obliged to declare a list of electricity charges by cadastral reference number. First declaration will be made on March 2011 with the 2010 information.

What does this mean? We all know that many people are not declaring rent from houses where are located business or professional activities. So the tax office has supposed there is a huge fraud on this. A business should to be set up in commercial units or premises. The rent has to be declared by the owner and the 19% payed by the tenant every three months.

By this decision, Hacienda could be able to check if some "empty houses" have electric activity that should be declared.

The Modules fiscal way will be also affected by this because many incomes declarations are depending on "Electricity charges" parameter.

[UPDATED] TAX OFFICE TELEMATIC NOTIFICATIONS IN 2011

Today we can know by the Order in Council 1363/2010 that from the 1st of January 2011 on, the spanish Tax Office will send the notifications to limited liability companies (SL) and public limited companies (SA) besides others (those legal entities whit a NIF that starts by N,W,U,V) by telematic ways instead of the actual paper notifications.

All these companies should have a digital signature in order to log in into their electronic addres account on the Agencia Tributaria website, and certify the notifications reception.

According to the government, this action has been taken following the costs cut plan, but many companies maybe are not still ready to apply this.

UPDATED: Finally, Mr. Gaspar Caballo, AEAT Management CEO had said recently that this new law will only be applied on the bigger companies (Grandes Empresas), or companies who were registered in the monthly IVA refund or export businesses. There are no changes in this over the medium and small companies by the moment.

OFFICE CLOSED ON NOVEMBER 1st

Next Monday, November 1st our office will remain closed all day due to national holidays. Sorry for the inconveniences.

UNEMPLOYED BENEFIT FOR SELF-EMPLOYED (AUTONOMOS)

From November 7th on, self-employed people(autónomos) will be able to apply for the unemployed benefit in case they will be forced to stop their activity (non voluntary).

What are the requirements?

1. Every autonomo, has to make the contribution over the unemployment fee if wants to apply for it in the future. This is the 2,2% over the contribution basement (the minimum basement is 841,80€). -Remember this: the social security quota is a percentage over your basement.

2. For being able to get the unemployed fee, the self-employed worker has also to add the proffesional eventualities (accidents and professional illness) to their Social Security contribution. Most of autónomos were not making this payment because they have a non-risk activity, but to apply for the benefit it will be an obliged requirement whatever the activity is. So for those who were not paying it, the cost will be a percentage from 1% to 6% depending on the board (you can download in Spanish)for the activity.

3. The benefit lenght is going to depend over the lenght of the contribution period. It has to be at least one uninterrupted year (counting from November 8th).

* Between 12 y 17 months contributed: you will get 2 months of benefit.
* Between 18 y 23 months contributed: 3 months.
* Between 24 y 29 months contributed: 4 months.
* Between 30 y 35 months contributed: 5 months.
* Between 36 y 42 months contributed: 6 months.
* Between 42 y 48 months contributed: 8 months.
* More than 48 months contributed: 12 months.

3. The benefit will be the 70% of the contribution basement for the last 12 months.

4. Like a contracted worker, if an autonomo choice to stop his activity, he will not be able to apply for the unemployment fee (for being able he has to be forced to be on dole). How it can be legally recognised "forced":

- To justify 30% losses in a year, or 20% in two years without counting the first year of activity,.

- A divorce that affect the business.

- To get the business licence canceled.

- Closing due to a judge order.

- Because Force Majeure(unforeseeable circumstances).

At the end is a personal choice for the Self-employed worker to increase his contribution or not if wants to be able to apply for the unemployment fee if things go wrong.

IMF revises Spanish growth forecasts slightly upward

The International Monetary Fund onWednesday slightly improved its growth forecasts for Spain for this year and the next, but insisted the recovery of the Spanish economy would continue to lag behind those of the rest of the major industrialized countries. In the fall edition of itsWorld Economic Outlook, the IMF predicted the Spanish economy would contract by 0.3 percent, compared with an earlier estimate of a fall of 0.4 percent. For next year, it increased its forecast for GDP growth to 0.7percent from 0.6 percent. The revised figures are still well above the government’s estimate of GDP growth of 1.3 percent in 2011. The agency sharply raised its estimate for growth in the euro zone for this year to 1.7 percent from 1.0 percent and for next year to 1.5 percent from 1.3 percent. The IMF sees world output rising 4.8 percent this year and 4.2 percent in 2011.
“The world economic recovery is proceeding,” the IMF’s chief economist, Olivier Blanchard, told a news conference in Washington. “But it is an unbalanced recovery.”
The IMF said that growth in Spain, Greece, Ireland and Portugal is expected to be much lower than the rest of the euro zone because of the constraints imposed by the need to get their financial houses back in order, and by a lack of competitiveness.
Portugal and Spain have embarked on painful austerity drives to bring their public deficits back within the 3-percent ceiling imposed by the European Union. In the case of Spain, the shortfall last year was 11.1 percent of GDP and 9.3 percent in Ireland.
The IMF predicted that the Portuguese economy would grow 1.1 percent this year before
stagnating the following year. The fallout from housing bubbles that have burst in both Spain and Ireland is also expected to put a drag on the recovery in those two countries. The IMF noted that construction’s share of total value added in Spain stood at 12 percent at the height of the housing boom, compared with an average for the euro area of only 7 percent. “The housing bust thus brought a severe contraction in construction and employment,” said the IMF, which in the case of Spain “is not showing any signs of abating from very high levels.” At over 20 percent, the jobless
rate in Spain is the highest in the European Union, where the average is under 10 percent. “Reallocation of labor away from construction is likely to take considerable
time, which will keep unemployment rates stubbornly high,” the IMF report said.
The IMF expects Spain’s jobless rate to rise from 18 percent last year to 19.9 percent this year, easing slightly to 19.3 percent in 2011.

3rd QUARTER TAXES

October 20th is the last day to present the IVA & advanced income tax payment for the 3rd quarter (July, August and September).

Bear in mind the deadline if you are going to pay it by bank account is the October 15th.

Income tax increase for high earns in Spain approved

The Spanish government has decided to increase the income tax for the highest earning workers.

For earnings above 120.000 euros annually, the new tax percentage will be 44 %, up one percentage point. For incomes higher that 175.000, the new tax is going to be 45 %, raised by two percentage points.

The government also approved a raise in the minimum pensions by 1 % in 2011. Other pensions remains freezed in order to save money, as economy ministry Elena Salgado explained these past days.

Electricity price in Spain will rise 4.8 % from 1. October

The price of electricity in Spain is to rise by 4.8 % starting October 1st, according to an agreement signed yesterday by the Ministry of Industry, Tourism and Commerce.

Increased fuel prices and seasonal adjustments for the upcoming winter are the reasons for the increased price.

The electricity price will have climbed by more than 30 % in Spain the last five years after this newest increase. The consumers organization “Facua” stated that there was absolutely “no justification” for the price increase decided yesterday, but did not indicate it would take any kind of action against it.

Tourist arrivals start to pick up again as economic crisis passes

The Spanish tourist industry this year had its best August for arrivals since 2006, but the country has yet to reach post-crisis levels amid stronger competition from cheaper destinations such as Turkey.
The Industry, Tourism and Trade Ministry said the number of overseas visitors rose 4 percent last month froma year earlier to just under 7 million. But disregarding last year when arrivals fell 8 percent, the figure for this August was the lowest since 2004.
Industry Minister Miguel Sebastián attributed the improvement to a pick-up in the key UK market where the economic downturn combined with the weakness of the pound had kept British visitors away in droves. The Italian and French markets also improved as the crisis eased

RESIDENCE REQUIREMENTS

From 28 March 2007, Royal Decree 240/07 requires that all EU citizens planning to reside in Spain for more than 3 months should register in person at the Oficina de Extranjeros in their province of residence or at designated Police stations. However, you will no longer be issued with a residence card. Instead you will be issued a Residence Certificate stating your name, address, nationality, NIE number (Número de Identificación Extranjeros) and date of registration.

If you are an EU citizen with a valid residency card, you do not need to do anything until your card expires. On expiry you must register at the Oficina de Extranjeros or designated police stations.

HAVE YOU WORKED IN SPAIN?

Whilst Spain continues to be a popular choice of residence amongst European pensioners, more and more British people are making the move earlier in life. The number of people who have worked and made social security contributions in both countries is therefore increasing. Living and working in Spain may be a dream come true for many. However, when it comes to the financial side of things, such as claiming pensions and benefits, the added factor of having lived and/or worked in another EEA country can seem like a headache most of us could do without!

But it doesn’t have to be. In terms of where you apply for your pension or benefit, the rules are relatively simple. You should make one application through the social security office of the country where you last worked and made contributions. So, if this is Spain, you should apply through the Instituto Nacional de la Seguridad Social (INSS). If your last place of work was the UK however, apply through the International Pension Centre.

After working in more than one EEA country, it is possible for your contributions from each one to be taken into account when calculating your pension or benefit. You must therefore give as much information as possible about your working life when you apply.

For example, when calculating your pension, the total number of qualifying years you have in the UK and Spain will contribute to your entitlement. If you have worked a combined total of 15 years, the minimum number of qualifying years for a pension in Spain, which is higher than the UK minimum, you may well be entitled to a pension from both countries.

It is also worth noting that state pension age in Spain is 65 for both men and women. However, a woman who has worked in both countries and who has a sufficient number of qualifying years, can apply for her UK State Pension at 60 and her Spanish entitlement at 65. If this does apply to you, you can continue to work in Spain until you are 65 whilst receiving your UK pension, but remember that you would need to make your application through Spain

You may also be thinking about paying voluntary contributions to top up your pension entitlement in either country. If you are currently working in Spain, but wish to voluntarily contribute to the UK, you can pay for any of the last 6 years where you have not contributed enough previously. In addition, anyone who reaches state pension age between April 2008 and April 2015 is entitled to pay voluntary contributions for any 6 years back to 1975, providing they already have 20 full qualifying years. If you are interested in paying UK voluntary contributions, contact HMRC.

COMPANY START-UPS RISE FOR SEVENTH MONTH IN A ROW

The number of new firms set up in Spain in July rose annually for the seventh month in a row in July, rising 9,2 percent after a hike of 7,0 percent in June, the National Statitics Institute said Tuesday.

HOME SALES CONTINUE THEIR RECOVERY IN THIRD QUARTER

Spanish home sales rose for the third quarter in a row in the period April-June and at a much stronger pace than the previous three months, as the housing market showed further signs of steadying after a prolonged slump.

The Housing Ministry said sales in the second quarter were up an annual 24,7 percent at 149.527 units after an increase of only2,3 percent in the first quarter of the year. On a quartely basis, home purchases climbed 39,6 percent. In the 12 months to June, sales rose 4,8 percent to 495.684. "Sales continued the recovery initiated in the forth quarter of 2009" the Housing Ministry said in a statement.

GOVERNMENT'S LABOR REFORM PASSED DESPITE UNIONS' WARNING

The Spanish government's controversial labor reform bill passed its final hurdle in the lower house yesterday, and is set to be signed into law. Congress threw out most of the amendments included in the bill by the Senate, and the new legislation retains largely the form aproved by Congress after a first reading in July.

The Socialist administration of Prime Minister Jose Luis Rodriguez Zapatero claims the make over of the jobs market is needed to address high unemployment, wich at over 20 percent is currently double the average in the European Union. The unions, however, argue it panders to demands of employers by cutting the cost of firing workers, and will fail to achieve its supposed end of creating more employment.

The bill relaxes the economic and financial conditions under wich companies can lay workers off with severance pay of only 20 days per year in service and promotes an alternative contract with compensation of 33 days as opposed to most current permanent contracts, wich carry an etitlement of 45 days' pay. It also reduces from 100 to 30 days the grace period given to unemployed workers who refuse training or a new job proposal by the state employment agency.

WEDNESDAY 8, CLOSED

We want to remind our clients that on Wedenesday September 8th, Orihuela celebrates the feast of Virgin Nuestra Señora de Montserrat. Due to that, our office will be closed that day.

NEW LEAFLET

You can now download our new leaflet for this Autumn. As it says, the new fees are for September and October. We want to help the enterprising people at these difficult moments.

Just click here.

SPANISH JOBLESS RATE HIGHEST IN EUROPEAN UNION

Spain continued to top the jobless rate table in the European Union as unemployment rose from 20,2% in June to 20,3% in July. The unemployment rate in July in the EU was stedy at 10% and was also unchanged in the euro zone at 9,6 percent.

OPEN ALSO IN THE AFTERNOON

Summer is getting to end and with September, we return to our normal schedule. Our opening hours are:

Monday to Friday

From 9,30h to 14,00h and from 15,00h till 18,00h.

Saturday & Sunday closed.

We remind you ways to contact us:

In our office in Orihuela Costa: In N-332 Road to Cartagena, at La Mosca Shopping Centre (SUPERCOR & HALIFAX), first floor, premises 8 (next to ATHENA TAVERN). Orihuela Costa.

Phone: 96 532 77 14
Mobile: 615 72 22 73
e-mail: vpadvisers@gmail.com

Have a nice day.

FIND US EASILY

From now on you can reach this web writting in your web browser:

WWW.VPADVISERS.COM

An easier way to find us.

MATERNITY ASSISTANCE FOR SELF-EMPLOYED

The new European norm says that for the first time, self-employed (Autónomos)women could ask for some maternity assistances and benefits similar to a contracted worker. All the European Union members have to apply this regulation in a maximum period of two years from this wednesday on. The final goal is to make the working situation between men and women, equal.

In Spain, this assistance is joining others like claiming for the unemployment benefit and the 425€ assistance for unemployed Autónomos who are not claiming -or if they have used it up- the unemployment benefit(with special requirements).

At least it is another way for the self-employed workers able to ask for these benefits to catch some air in these times.

AUGUST: OPEN ONLY AT MORNINGS

Because of summer time our office in Centro Comercial La Mosca(Supercor) will only be open at mornings during the month of August.

Our new opening hours will be:

9:30-14:00 from Monday to Friday.

We wish you a nice summer.

2ND QUARTER: IVA & INCOME TAX

We want to remind you that July 20th is the deadline for second quarter (March, April, June) payments of both IVA and Income tax.

Remember that from July the IVA rates change. From now on, 18% general rate, 8% reduced rate and the 4% lowest rate keeps without changes.

IVA INCREASED. NOT OUR PRICES.

Yesterday, the IVA rates were finally increased by the government. From now on, the new rates are:

18% general rate and 8% reduced rate. The 4% lowest rate remains without change. You can check it with more detail in our previous post.

In order to help our clients at these difficult moments, we decided to do not make any changes in our prices. Take a look at an extract of our price list here.

And contact us for other services.

-VP ADVISERS-

OPENING HOURS

Note that from today forward, our opening hours are:

Monday to Thursday: 9:30-14:00 and 15:00-18:00.
Friday: 9:30-14:00.

Our office is located in "La Mosca Shopping Centre"(SUPERCOR)in Orihuela Costa, first floor, premises 8.

Lan line: 965327714
Mobile: 615722273
e-m@il: vpadvisers@gmail.com

-VP ADVISERS-

INCOME TAX SWINDLE

The spanish tax agency (Agencia Tributaria) warns of a new e-mailing swindle.

If you are asking for a refund over your 2009 Income Tax, be careful if you receive any e-mail at your inbox. Fake e-mails sent as "phishing" action, were detected on June 10th and inmediatly messures has been taken by the government in order to finish this fraud. It makes reference to a kind of information which "makes impossible" the refund. The e-mail forges the Agencia Tributaria signature and logo.

The e-mail ask you to fill personal data in an external link, again with fake Agencia Tributaria signature and logo. The tax agency suggest to be careful with suspect comunications. Even more if these e-mails ask for bank accounts numbers.

Finally, bear in mind that spanish tax agency won't ask you by e-mail for any personal or economic information, credit card numbers or taxpayers bank accounts.

OUR PRICE LIST

Here is an update with an extract of our price list.

Income Tax: 30€.
Non resident tax: 40€ (per form).
Self-employment registration: 90€.
Joint ownership company registration (comunidad de bienes): 250€.
Limited company registration: 800€.
Wills: 50€.

Accountancy and taxation fees per month:

-Self employment: 50€.
-Joint ownership company: 50€ per member.
-Limited company: from 100€.
-Labour: 20€ per worker.

Download our new leaflet.

For other services, please contact us.

2010 WORK CALENDAR

Click the link to download the 2010 Work Calendar.

2010 WORK CALENDAR

2009 RESIDENT TAX

Don't forget the 2009 Resident Tax deadline is 30 June 2010.

HOUSING SALES RISE FOR SECOND QUARTER IN A ROW

Spanish home sales rose in the first quarter of the year, albeit at a slower pace than in the last quarter of 2009, as the housing market showed signs of stabilizing
after a two-year slump. The housing minister said that sales in the period April-June were up 1.5 percent at 106,302 units after climbing 4.9 percent in the fourth quarter of last year. The ministry said the increase was due to sales of existing homes, which rose 31.3 percent, while sales of new homes decreased 21.5 percent from a year earlier.

SPAIN INCREASES ITS VAT RATES FROM JULY 2010

The 4% rate – to be kept at 4% in July 2010
This is applied to items considered to be of basic need. It includes basic bread,
frozen dough, eggs, cheese, milk, beans and fruit and vegetables.
Books, magazines and newspapers.
School material with the exception of electronic items.
Medicines for human use.
Vehicles for the disabled, wheel chairs and collective transport for the disabled.
Prosthesis and implants.
Official protection housing.

The 7% rate – to increase to 8% in July 2010
Foodstuffs in general, with the exception of those in the 4% band, soft drinks.
Animals destined for human consumption or breeding.
Items used in agricultural, farming and forestry activities, such as seeds and fertilisers.
Contact lenses and glasses.
Disabled lifts and items for the diagnosis of illnesses.
Health assistance services, social services, and dental work.
Imported artworks and antiques.
Hairdressing.
The handing over of housing, including garages and annexes.
House construction (between promoter and contractor).
Services supplied by artists and technicians.
Sports, cultural and recreational services, exhibitions and fairs.
Funeral services.
Hotel and restaurants, cleaning of streets and public gardens.
Rubbish collection.
Transport of passengers and motorway tolls.

The General Rate – now 16% to rise to 18% in July 2010
All other products, including alcoholic drinks, tobacco, animals used in
bullfighting, agricultural machinery.
CD’s.
Devices for the diagnosis and monitoring of pregnancy.
Television and radio services.

THE TAXPAYER AND RESIDENCE

While residents in Spain pay taxes on their income worldwide, nonresidents
are taxed only on their income from sources within Spain. That is why residency is so important.
A. Residence of the individual
Individuals are deemed to be residents in Spain when they meet any of the following criteria:
• They remain in Spain for more than 183 days during a calendar year. In order to determine the period of stay, sporadic absences are included in the count, except those where the tax residence in another country is proved. In the case of countries
or territories labeled as tax havens,the Tax Administration can demand proof of stay in that tax haven over a period of 183 days in a calendar year.
In order to determine the period of stay, temporary stays in Spain that are the consequence of contractual obligations in agreements of cultural or humanitarian collaborations performed free of charge with the Spanish Public Administrations are not included.
• Their main base or centre of activities or economic interests is, directly or indirectly, in Spain.
Also, it is presumed, except if proved otherwise, that a taxpayer has his usual place of residence in Spain when, using the above criteria, his spouse -not legally separated- and underage dependent children are permanent residents in Spain.
In addition, individuals of Spanish nationality who prove their new residency in a tax haven (Appendix V), will continue to be deemed residents in Spain for income tax purposes (Impuesto sobre la Renta de las Personas Físicas - IRPF), both in the taxable period during which they change their residency as well as in the four tax
periods thereafter. However, this rule will not apply to individuals resident in Andorra who prove their status as wage-earning workers, provided that they comply with certain requirements.
An individual will be considered either as resident or nonresident for the whole calendar year, because a change of residency does not interrupt the taxable period.

WELCOME!

Dear clients:

First of all, we want to introduce ourselves and expose all the services you can find in our office, located in La Mosca Shopping Centre in Orihuela Costa. We offer to you personalized service to cover all your needs about:

-Register a business.
-Accountancy.
-Taxation.
-Labour Advice.
-Conveyancing.
-Legal Advice.
-Insurances.
-Wills.
-Utilities issues.

And many services that we will add progressively.

You could find us in Orihuela Costa, Carretera Cartagena s/n -La Mosca Shopping Centre- Upstairs, Premises 8.

You can contact to us in this e-mail adress:

vpadvisers@gmail.com

Also you can contact us by phone:

965 327 714
(Mobile: 615 722273)

Finally, we propose you to frequently visit this blog, which will be updated with some news and information that may affect to you as citizen or to your business.

Have a nice day.

-VP ADVISERS-