TAX CONSULTANT LAWYER – TAX SOLUTIONS.
ÁLVARO, THE No. 1 TAX CONSULTANT AND LAWYER EXPLAINS TAXES.
Explore Taxes with a tax consultant lawyer.
¿Did you know that the public services that you and I enjoy are financed mainly with taxes?
Join me on this tour and explore the main taxes that exist in Spain through your lawyer and tax consultant.
VALUE-ADDED TAX (VAT)
PERSONAL INCOME TAX (PIT)
Some taxes are paid directly when you buy a good, such as VAT, or are simply withheld by the payer to be entered into the Treasury Inspectorate by decreasing the amount payable on our Statement, such as the PIT.
Money doesn’t give happiness, but it provides a similar feeling which requies a very advanced specialist to verify the difference
Other taxes occur in sales cases or in family inheritance: the Inheritance Tax and the Tax on Reciprocal Property Transfers and Documented Legal Acts
You don’t usually pay attention to them…
THE INHERITANCE TAX
is a tax that people don’t usually pay attention to.
If you don’t, you will lose money… and you’ll regret it.
ROSA AND GUILLERMO’S CASE.
Rosa, who lived in Galicia, passed away this year and left her house in bequest to her only son, Guillermo.
Guillermo had to take charge of filing the Inheritance Tax.
He did not have any tax knowledge; therefore, he did not know how or when to file the tax, nor did he know that the tax was transferred to the Autonomous Community of Galicia, and that there is a tax relief for kinship and another for your principal residence.
In addition, Guillermo was not aware of the duty to present the Municipal Capital Gains at the Council.
I am sure that you think that the case of Guillermo is unusual and perhaps you have never heard anything like it, but I’m sorry to tell you, my friend, that this case is very common.
In my opinion, the case of Guillermo has two solutions: try to gather information on the case on his own or trust a professional (tax consultant) to guide him and manage his taxes.
Guillermo’s case is common.
TAX ON RECIPROCAL PROPERTY TRANSFERS AND DOCUMENTED LEGAL ACTS
Have you bought a second hand house or car? Have you gone to the notary to grant some sort of deed?
You already know that you are required to pay the ITPAJD to the Autonomous Community before registering the property in the Property Registry or modifying the vehicle’s owner in Traffic.
Ana had decided to buy a flat this year.
She didn’t know if she had to pay the VAT or to file other taxes, such as the Tax on Reciprocal Property Transfers or Documented Legal Acts.
Nor did she know what value to put to the property, nor whether it could be deducted for any reason.
And of course, she didn’t know what kind of percentage she would have to apply to estimate the tax assessment.
I can assure you that Ana’s case is typical when people are not clear about the guidelines to follow after buying a flat, or what to do with the ITPAJD.
Thus, our friend Ana ought not adopt the same solution as our friend Guillermo:
TRUST A PROFESSIONAL (tax solicitor or consultant) to help you and manage your taxes.
This tax is one of the main taxes levied on the activity of companies.
In addition, it is a key element in making fundamental decisions, such as the establishment of a company.
Juan owns an LC, JUAN SL.
Every year JUAN SL has to file Corporate tax.
The tax is calculated based on the accounting result. Did you know…
JUAN SL can reduce the accounting result in all deductible expenses and simultaneously present a faithful accounting of JUAN SL, allowing it to obtain the needed bank financing. And that…
JUAN SL may pay the legal minimum in Corporate Tax, avoid any claim by the Treasury Inspectorate and have the banks give it the necessary work loans.
NON RESIDENT INCOME TAX
I can guarantee you that, if there is a phenomenon that has provoked the economic crisis, it is emigration.
Many Spaniards have chosen to emigrate to other countries in search of job opportunities that did not exist here.
This has greatly increased the frequency of the non-resident taxpayer profile.
Amelie is a woman living in France. She bought a house in Sanxenxo to spend the holidays in that municipality.
Even if she doesn’t receive income from the house, that income will be assumed.
As there is an agreement between Spain and France to avoid Double Taxation, Amelie must file the corresponding model to the tax on Non-Resident Income in Spain, effectively allowing her to avoid paying for this flat in France. Therefore…
Amelie will pay the corresponding tax in proportion to the cadastral value of the property. And you?
If you are also considering the purchase of a holiday home in Spain, don’t let your tax concerns stop you.
In my opinion, the best way to clear up any concerns you have about this issue is to contact me; I am a Tax Lawyer. The best thing would be to request a consultation and meet. Don’t forget that…
A Tax Lawyer remains the most appropriate professional to settle cases like these.
Property tax generates frequent questions.
After being suspended, it now returns year after year to levy the assets and rights of certain taxpayers.
For this reason, it is very important to have the correct information about it that can be provided by your lawyer and tax consultant.
Michel is an excellent athlete and thanks to his daily sacrifices and competitive spirit he has managed to turn his passion for sports into his source of income, reaching a very high standard of living.
Therefore, he will be required to Property Tax. Michel’s case will ring a bell…
Michel is a player on a Galician football team. He has previously played in the Autonomous Community of Madrid and all his assets are there.
As he resides in Spain and all his assets are in Spanish territory, he is required to file the Tax. Michel will need to value his assets for tax purposes.
As Michel’s assets exceed 2,000,000.00 euros, it is necessary for him to file Property Tax.
As the tax yield is transferred to the Autonomous Communities, according to the Law, he will pay in the Autonomous Community where he resides. Michel resides in Galicia, so he will file the tax in that Autonomous Community.
However, in Michel’s case there are exemptions that reduce the charge payable for the tax.
If you, like Michel, have increased your assets and are obliged to comply with these regulations, please get the relevant information from your tax consultant as soon as possible.
DID YOU KNOW THAT YOU CAN AVOID DOUBLE TAXATION?
OECD countries have signed Bilateral Agreements to avoid double taxation on income and wealth. These agreements include procedures to prevent fraud and improve the exchange of information.
Elena is a biologist and works as a researcher at CSIC.
She has received an offer from the University of Paris to devote herself to research and teaching at that University.
Elena is not certain in which country she will have to comply with her tax obligations, but between Spain and France there is an Agreement to avoid Double Taxation, and it will determine in which country she will pay Income Tax. CONGRATULATIONS ELENA!
Finally, Elena fulfilled her dream: to work as a researcher in a foreign country.
Despite the euphoria and the beautiful experiences that Elena will have on her new adventure, she will also have to take charge of her tax management outside her country of origin. Don’t make a mess of things…
I am sure that after reading our section on “tax solutions” and acting as a tax consultant for you, you will have a better understanding of the world of taxes. After reading this, you way be able to solve part of your case. But, if this is not the case, and you need a legal consultation with a tax lawyer, don’t forget the following:
You can easily schedule it with me through this link.