TAXATION OF INCOME FROM GERMANY RECEIVED BY PERSONS WITH TAX RESIDENCE IN SPAIN

Nov 6, 2017 | Uncategorized

Persons with tax residence in Spain are obliged to declare their world income what income tax refers to. Therefore, income or pension funds received from Germany are subject to taxation and inclusion in the yearly income tax return. At the beginning of 2015, the...

TAXATION OF REAL ESTATES LOCATED IN SPAIN HELD BY PERSONS WITH TAX RESIDENCE IN GERMANY

Nov 6, 2017 | Uncategorized

Whenever a natural person owns one or more real estates for private purposes in Spain, the following yearly taxes (apart from the property tax “IBI“) apply according to Spanish Law: a) Non-resident Income Tax (“IRNR”): its calculation is based on the cadastral value...

EXECUTIVE LIABILITY IN SPANISH COMPANIES

Nov 6, 2017 | Uncategorized

Nowadays, Spanish Tax Authorities tend to initiate liability transfer procedures against the Directors of a company when the latter itself is not able to settle its tax obligations. Should this be the case, the tax residence of the Directors whose personal assets are...

RISKS OF A PERMANENT ESTABLISHMENT WITH EMPLOYEE IN SPAIN

Nov 6, 2017 | Uncategorized

A German enterprise may as well have an employee in Spain without the necessity of a legal structure (such as a subsidiary or a permanent establishment). However, it is essential to appoint a tax representative (such as the employee). Notwithstanding the...

TAX NUMBERS (NIF) NON-RESIDENT ENTITIES

Nov 6, 2017 | Uncategorized

In the binding tax ruling V1361-16 the Spanish Tax Authorities analyse the situation of a non-resident entity operating in Spain both through a permanent establishment (PE) and by performing a different business activity without the intervention of the Spanish PE. The...