Author: Maria Luisa
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Issuing a corrective invoice – do’s and don’t!
It’s happened to every business-person at one time or another. A change in the order, a return or just a simple book-keeping mistake means that you have to issue a corrective invoice (factura rectificativa). But these corrective invoices must comply with strict rules to prevent later problems with Hacienda (the tax office). A corrective invoice…
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Lending money to a company?
Lending money to a company can be a strategic move, especially if you’re helping a family member kickstart their business. However, navigating the tax implications requires careful consideration to ensure you’re maximizing benefits and minimizing liabilities. When you loan money directly to the company, Hacienda (the tax authority) applies certain assumptions regarding interest, which may…
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Sell online? Make sure you’re declaring your tax – even if it’s a once off!
The Spanish tax authority has ruled that any individual selling goods second-hand online is still liable for tax, even if it’s a once-off sale. Make sure you declare it – because Hacienda will be linking up information provided by online marketplaces such as EBay, Wallapop or Amazon to catch tax evaders…. We’re giving the basic…
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Operating a tourism rental property
Renting a Short-Term Apartment in Andalusia: Your Complete Guide Andalusia, with its stunning coastline, rich history, and vibrant culture, is a magnet for tourists seeking unforgettable experiences. If you’re considering renting out your apartment as a short-term rental in this picturesque region of Spain, you’re tapping into a lucrative market. However, navigating the process can…
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5 minute guide to buying property in Spain
A 5 minute guide for people who want to buy property or land in Spain. This article is divided into the following sections (click to jump there): Legal advice | Translators | Mortgages | Important things to check | Taxation and costs | Case study Legal advice It is strongly recommended that you choose an independent legal advisor, Asesoría, who is specialised in Spanish land law…
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Non resident inheritance
Inheriting assets in Spain while not being a resident in the country can be a complex process, with significant implications for tax obligations. Failure to address these obligations promptly can result in penalties. Here’s what you need to know: Tax Obligations and Regions: Spain’s inheritance tax system varies across its administrative regions, such as Andalucía,…
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Planning on giving your home to your children? There may be a better alternative
Imagine you’re in the process of relocating from your current home to a new one, and you’re considering donating your current property to your children. However, before making a decision, it’s essential to understand the fiscal implications involved in this scenario. Fiscal Costs: Best Case Scenario: If you’re over 65 years old and your current…
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Moving abroad doesn’t mean residents have to pay capital gains tax on their house sale
Moving abroad doesn’t necessarily mean that Spanish residents have to pay capital gains tax on the sale of their house. There are specific exemptions and conditions that apply, particularly if the proceeds from the sale are reinvested in a new main residence. Here’s a detailed breakdown of how the process works: Exemption for Main Residence…
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Non resident property taxes
If you are a non-resident in Spain but own property, it’s essential to be aware of your tax obligations, including the requirement to file an annual tax return. This obligation is separate from the Impuesto sobre Bienes Inmuebles (IBI), which is similar to council tax and is paid annually to your town hall. If you…
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Taking over a mortgage is usually the best option
When it comes to purchasing a property, there’s a smart financial move you might not have considered: taking over the current owner’s mortgage instead of signing a new one. This process, known as subrogación in Spanish, can offer significant benefits and potentially save you a substantial amount on taxes. Imagine you’re on the brink of…