New Spanish Government introduces Tax Changes

New Spanish Government introduces Tax Changes

mariano-rajoy-fotoNew Spanish Government introduces Tax Changes

The new Spanish Government, which takes power this month, has highlighted the main tax changes it wants to introduce.

The detailed proposals have not yet been announced but its anticipated that the following measures will be introduced.

  1. Deductions for the acquisition of a permanent home.
  2. A reduction of 10% on Corporation tax where the profits are reinvested.
  3. Reduced rate of VAT on the acquisition of new homes.
  4. The reduced rate of Corporation tax, currently 20%, will be maintained, and extended to companies with profits up to 12 million Euros.
  5. The super-reduced rate of Company Tax will be extended to companies with profits of up to 500,000€.
  6. Accelerated Capital Allowances for investment in fixed assets.
  7. Profits generated on the sale of fixed assets will be free of Capital Gains Tax if the proceeds are reinvested.
  8. VAT chargeable on sales will not become payable until the amount of the invoice has been received.
  9. The tax office will create an account with each tax payer, so that taxes payable can be set off against those that are receivable.
  10. The tax incentives on private pension fund contributions will be improved.
  11. Tax relief of up to 3,000€ will be granted to self employed individuals who contract their first employee.

We will keep you informed as these measures progress.

Best wishes for the New Year