(English) Buying a Property in Spain

(English) Buying a Property in Spain

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BUYING A PROPERTY IN SPAIN. LEGAL AND TAX NEEDS

General:

 — Execution of the notarized public deed of purchase. The acquisition must be attested to by aSpanish notary public or by a Spanish Consul abroad, to whom it is necessary to show evidence of The identity of the parties and, if applicable, the related powers of attorney, as well as their respective tax identification numbers; the seller’s title to the property; the special form that shows the effective payment and means by which the purchase was carried out (specifically, whether the payment was received prior to the formalization, the amount, and whether payment was made in cash, by check or any other money transfer instrument or by bank transfer). Seguir leyendo “(English) Buying a Property in Spain”

Personal Tax in Spain

Personal Tax in Spain

PERSONAL TAX IN SPAIN

Wealth Tax

 Impuesto sobre la renta de las personas físicas/IRPF is a direct tax levied on the income of individuals.

The individual’s income may come either from work as an employee or by means of self-employment — development of a business or professional activities.
Taxable income is determined as the difference between the income earned and the expenses that are deductible according with the Spanish law.

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Capital Gains Tax

Capital Gains Tax

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CAPITAL GAINS ARISING FROM THE SALE OF BUILDINGS

Capital gains resulting from the sale of property constitute taxable income. This income is deemed as accrued when the property is transferred.

In general, the amount of the capital gains is determined by the difference between the cost price and transfer value of the property.

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(English) Business Taxes in Spain

(English) Business Taxes in Spain

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Company Tax or Corporate Income Tax for Business Taxes in Spain

This is a national business or corporate income tax in Spain on all types of Spanish companies (as well as nonresident companies in Spain) except the Sole Trader (Autónomo). (Sole Traders report their business and personal income together on their IRPF instead.) The standard Company Tax rate is 30%, but small and medium companies (PYMEs), who are defined as having a net turnover of less than three million euros each year, are only taxed at 25% on the first 120,202 euros earned and at 30% for income above that figure.

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