Last March 15, the state of alarm entered into force in Spain for a period of 15 days, this exceptional situation would therefore by the end on March 29 next.
Today the extension of the state of alarm has been communicated by the Spanih Government. We now know that the exceptional measures decreed by the Government are going to be extended for another 15 days, therefore the period of confinement throughout the national territory, extends until April 12.
Consequently, doubts arise about how to act in such exceptional circumstances. Many non-resident foreign owners and investors in Spain are now wondering how to protect their investments, properties and businesses in Spain. What are the most effective measures to control and protect your assets, interests and ongoing business from abroad.
Anyone who is a director of a Spanish limited company has certain legal obligations (which is why the director is required to accept the position) and is therefore liable for its acts and omissions when they in any way damage the company itself, its partners or creditors, the three most significant interests for which the Spanish juridical system provides greater levels of legal protection.
Spain’s autonomous communities have devolved powers to legislate in certain tax matters. In the case we are examining here, that of inheritance and gift tax, the Canaries enjoys certain tax benefits for children and spouses that are greater than in other autonomous communities, specifically:heirs belonging to groups I and II (spouse, parents and children) are granted a 99.9% discount of the tax payable on lifetime gifts (“inter vivos”) provided that the donation is formalized in a notarial deed.
Spouses, descendants and adopted children also enjoy a 95% reduction on the net value of elements of a business or professional activity developed by the donor, provided that a series of requirements are met. Continue reading “INHERITANCE & GIFT TAX UPDATE”
Let’s imagine, for the sake of argument, that you have signed a long-term contract which established obligations or provision of long-term services, and suddenly you find your circumstances changed dramatically (eg. death of the person who had to provide the contracted services) … even a global economic recession .. or indeed any circumstances that are extremely burdensome on one of the contracting parties (terminal or chronic illness), then there exist exceptional legal grounds for annulling a clause in the contract (the usual procedure) or even the termination of the contract itself by means of the “rebus sic stantibus” clause. This legal remedy should be used sparingly. Continue reading “WHAT TO DO WITH A SIGNED LONG-TERM CONTRACT WHEN FACED WITH AN UNFORESEEN CHANGE OF CIRCUMSTANCES AFFECTING COMPLIANCE WITH ITS TERMS”
Given the numerous enquiries and questions received in respect of Decree 113/2015, of May 22, which approved the regulation of holiday homes in the Autonomous Community of the Canary Islands (BOC No. 101 of 05/28/2015), the Canarian Tax Authorities have announced on their website that a vivienda vacacional rental (defined as a temporary holiday let to someone in exchange for money and which has been advertised in tourism-related channels) is an activity subject to, and not exempt from, Canarian Indirect General Tax (IGIC). Continue reading “TAXATION OF VIVIENDA VACACIONAL (PRIVATE HOLIDAY RENTAL) PROPERTIES”
The Spanish budget for 2018 was meant to have been approved in September 2017, but due to political instability in Spain and the lack of sufficient support to pass the budget, it had to be postponed. With no 2018 budget confirmed at the start of the year, the 2017 budget was automatically extended until the new one could be approved. Continue reading “SUMMARY OF THE MEASURES WHICH MAY AFFECT RESIDENTS OF SPAIN”