Average number of foreign citizens registered with Spanish Social Security system rises by 55,334 in May, the largest rise since 2005

The number of foreign citizens registered with the Spanish Social Security system stood at 1,663,217 in May, an increase of 3.44% - or 55,334 National Insurance contributors - on April. The increase in contributor numbers to the system was the largest for the month of May since 2005 (the year in which the status of immigrants was regularised).

When compared with 2014, the number of foreign workers has increased by 3.42% - equivalent to 54,996 more NI contributors. The rate has returned to positive figures for the first time in six years.

Spain and Russia increase collaboration on industry, energy, transport and tourism

The 8th Session of the Spain-Russia Inter-governmental Mixed Commission on Economic and Industrial Cooperation was held in Madrid today. The meeting was jointly chaired by the Spanish Minister for Industry, Energy and Tourism, José Manuel Soria, and the Energy Minister of the Russian Federation, Alexander Novak.

The meeting was attended by senior members of both governments and executives from large Russian and Spanish companies to assess trends in economic and trade relations in recent years and analyse the possibilities of future cooperation.

Ranks of Spain’s rich have grown by 40% since start of crisis, study finds

The number of people with large fortunes in Spain has grown by 40 percent since the crisis began in 2008. In 2014 alone, the amount of wealthy individuals rose 10 percent to reach 178,000 people, a new report finds.

A study by consulting firm Capgemini and RBC Wealth Management found that there had been a seven-percent global increase in the number of high net worth individuals (HNWI) in 2014. People who fall into this category have a million dollars or more in investable assets without counting the value of their primary residence or consumer goods.

Prices fall 0.2% in May, 0.4 points down on the April figure, due to energy and fresh food

The Consumer Price Index (CPI) fell by 0.2% in May year-on-year, according to figures published by the National Institute of Statistics (Spanish acronym: INE). This rate matches the figures published by INE at the close of May and is 0.4 percentage points (pp) higher than April.

The acceleration in prices has been reflected in the main CPI headings, particularly fresh food and energy products, which are the most volatile elements in the general index. Month-on-month, prices rose 0.5%, particularly in the case of energy and fresh food.

IMF calls on Spain to raise VAT and enable cheaper layoffs

The International Monetary Fund (IMF) has said it is pleased that the Spanish economic recovery is gaining traction, but that it still wants to see more reforms.

In statements made on Monday ahead of the release of the organization’s annual report on Spain, IMF officials called on the government to make it cheaper for companies to lay off workers, to increase value-added tax (VAT), and to introduce healthcare co-payment in order to bolster the Spanish economy.

Spain and United States step up bilateral collaboration on employment issues

The Minister for Employment and Social Security, Fátima Báñez, held a meeting with the Secretary of Labor of the United States, Thomas Perez, at which they reviewed the situation of the Spanish labour market and agreed to enhance bilateral collaboration between the two countries on employment issues.

​This meeting provides continuity to the previous meeting held between Minister Báñez and Secretary Perez in Melbourne in September 2014 within the framework of the meeting of employment ministers of the G-20.

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.

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.

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. 

Spain closes first four-month period of 2015 with new record spending by inbound tourists at 15.92 billion euros, up 7.2%

According to the Tourist Expenditure Survey (EGATUR) drafted by the General Sub-directorate of Tourism Information and Studies of the Ministry of Industry, Energy and Tourism, spending by those inbound tourists who travelled to Spain in the first four months of the year hit a new record of 15.92 billion euros. This represents growth of 7.2% on the corresponding period in 2014.