Mariano Rajoy announces the Government of Spain is preparing more measures for the self-employed.

In his speech during the Debate on the State of the Nation, the President of the Government stressed that the next "achievable" target, "if we avoid tripping up", is to create "three million jobs, net". He stressed that not asking for a bailout was "the main measure under our social policy" in this legislature and announced further measures to promote the Social Agenda of the Government of Spain and consolidate economic growth.

Rajoy congratulates himself on taking Spain out of the crisis without a bailout

Spanish Prime Minister Mariano Rajoy delivered the final State of the Nation address of his current term of office on Tuesday, during which he congratulated himself on turning the nation around from the situation of near-bankruptcy he encountered when he came to power in December 2011 without the need for a European bailout.

VP Advisers - Solicitors and Tax Specialists

VP Advisers has been helping people in Orihuela Costa since 2009. It was created by leading lawyers and economists in order to provide accounting advisory services, tax and labour advice to local home-owners and residents, the self-employed and businesses of all sizes. 

ARE YOU RESIDENT IN SPAIN FOR TAX PURPOSES?

The way in which individuals and bodies corporate pay tax in Spain varies depending on whether or not they are residents of Spain.

1. INDIVIDUALS

Individuals shall be deemed to have their principal residence in Spain if they meet any of the following conditions:

• They spend more than 183 days per calendar year in Spain. Occasional absences shall be taken into account to calculate the period of residence, except when said individuals prove they have their tax residence in another country. In the case of countries or territories classified as tax havens, the Spanish tax authorities may request proof of residence in the tax haven for 183 days per calendar year.

BUSINESS OPORTUNITIES: THE AUTOMOTIVE SECTOR IN SPAIN

The Spanish Automotive Sector Turnover represents 10% of GDP and 17.7% of the total National Exports.

More than 300.000 people is directly employed in the automotive industry and two million jobs are linked somehow with the sector. Around 10% of the working population is related to the Automotive sector.

If you perceive pensions from abroad you can tidy up your tax situation without penalties only until June 30

The law provides that resident in Spain must declare all their income in this country irrespective of their source, without prejudice to the various international treaties could establish. Many residents who receive income from their countries of origin, or others, think it is enough to be paying taxes at source and not take into account the fact that not to fill up the income tax in the country where they live or not including all the worldwide incomes may cause them penalties, surcharges and default interest.

Cristóbal Montoro announces all-time record 12.3 billion euros collected in fight against fraud in 2014

Speaking in Seville, the Minister for the Treasury and Public Administration Services, Cristóbal Montoro, announced that the Spanish State Tax Office (Spanish acronym: AEAT) collected revenue of 12.32 billion euros in 2014 through its tax control activity. This is an increase of 12.5% on the results obtained in 2013 (10.95 billion euros) and, in turn, represents an all-time record.

Why now is the best moment to become Self-Employed (Autonomo)?

At this moment you can take advantage on the benefits applied on the taxation, social security and public helps available to establish your own business as self-employed because now  is cheaper and more convenient than ever.

 

Reduced Social Security fees

 

If you are under 30 years, during the first 6 months of activity the fee is 53,07 € , a reduction of 80 % over the normal fee . In the next 6 months , the reduction is 50% (131,36 Euros) and in the 18 months following a reduction of 30 % (183,55 Euros)

 

King Felipe lowers his salary, but taxpayers will not feel the savings

King Felipe VI has decided to slash his own salary 20 percent in the first royal budget he has approved since his accession to the throne in June of last year.


But the reduction, which brings the monarch’s annual wages down to €234,204, will not produce any overall savings for the taxpayer, as Felipe VI has raised the allocation for other items, bringing the total amount that the royal palace receives from the state back to the usual €7.7 million.

Euro and low inflation boost price competitiveness in fourth quarter of 2014

The foreign trade competitiveness of the Spanish economy in the fourth quarter of 2014, taking the Consumer Price Indices as a reference, increased vis-à-vis the EU due to lower Spanish inflation compared with the average rate of inflation in the other EU countries and the depreciation of the Euro against the currencies of those countries.

Spain also gained competitiveness over the OECD. This was boosted significantly by the considerable depreciation of the Euro in the fourth quarter of the year and a greater contraction of Spanish prices in relation to the average year-on-year change in prices from the other OECD countries.

Non resident Tax

A person who is non fiscal resident in Spain and is getting any kind of income in this country during the year has to be declaring and paying taxes for the incomes received. The most common case is a Non Resident person who owns a holiday house or property in Spain.

Regardless of whether or not the real-estate property is leased out, income from said property shall be subject to IRNR. However, the tax treatment varies depending on whether or not the property is leased.
 

Average affiliation falls by 199,902 in January but reflects 12,613 more jobs in seasonally-adjusted terms

The average number of people affiliated to the Spanish Social Security system in January stood at 16,575,312. This figure represents a decrease of 199,902 (-1.19%). Since comparable records began (2001), affiliation has never risen in January. Seasonal factors mean that January is traditionally a negative month in this regard but the decrease this year is the second lowest since 200

TAX FINES AND SANCTIONS ON TAX FORMS OBLIGATIONS (II)

This new article we will see about other different tax fines and sanctions that can affect to people or corporations.

Penalties for not paying a tax when the result is to pay. 

This penalty is avoided when the taxpayer pays the tax without the previous requirement of the Tax Office. Or when the tax is submitted in time but without paying the deposit, because in this case the executive process to collect that debt is beginning.

TAX FINES AND SANCTIONS ON TAX FORMS OBLIGATIONS (I)

Today we are going to explain with some detail what are the consequences of not complying with our tax obligations, or do it out of time.

Penalties for submitting tax forms after the deadline
 

If there is not a financial damage to the Tax Office , then apart from the surcharge addition , the following sanctions shall be established .