that requires the vendor/promoter to cancel the off-plan purchase contract if the finished property does not significantly match what was described in the contract or promotional publicity, said legal action seeking the return of stage payments and fees, with interest.
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”
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”