SPANISH VAT: SALES FROM GERMANY TO SPANISH COMPANIES WITH TEMPORARY STORAGE IN SPAIN

Nov 6, 2017 | Uncategorized

Whenever a German company rents a warehouse located on Spanish territory for storing products coming from Germany to be sold to Spanish companies, this could be interpreted as the existence of a permanent establishment from a VAT perspective. In such case, the...

SPANISH VAT: SALES FROM GERMANY TO SPANISH END CUSTOMERS

Nov 6, 2017 | Uncategorized

The special VAT system for distance selling provides that sales made by a German company without permanent establishment in Spain, delivered directly from Germany to the end customer, shall be subject to Spanish VAT when they reach a yearly turnover of at least 35,000...

PARTICIPATION EXEMPTION

Nov 6, 2017 | Uncategorized

Since the new Spanish Corporate Income Tax Law entered force in 2015, Spanish enterprises with a participation of at least 5% in other companies, regardless of whether these are Spanish or non-resident companies, are entitled to certain tax advantages: as well the...

TRANSFER PRICING

Nov 6, 2017 | Uncategorized

In 2009, very strict penalty regulations were approved in Spain regarding all those companies not able to give sufficient evidence of their transactions with associated parties. However, during the last years, revisions on transfer pricing documentation performed by...

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...