"Life moves on whether we act as cowards or heroes.
If faced with an open mind, every moment is a golden one if you have the vision to recognise it as such"
(Henry Miller)
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E - BULLETIN #29 - OCTOBER 2009
PROPOSAL FOR TAX CHANGES 2.010
The Spanish Government has announced some tax changes from 1st of January 2.010 that we summarize as follows:
- The general VAT rate goes up from 16% to 18%, and the reduced rate from 7% to 8%. The super-reduced tax rate is maintained at 4%. This measure comes into force in July 2010. The purchase of new housing (except for subsidies homes), which is a Vat chargeable event, will be taxed at 8%, up by 1%.
- Personal income tax on financial products & capital gains also goes up. The base rate rises from 18% to 19% up to 6.000€ of profit while the excess is taxed at 21%.
- Suppression in personal income tax deduction of 400 Euros for earned income or economic activities.
- Withholding tax on dividends and interests increase from 18% to 19%.
- Withholding tax suffered by Spanish resident landlords on rental income rises from 18% to 19%. Non Spanish resident landlords continue with the 24% tax rate.
- Capital gains tax obtained by an individual, non Spanish tax resident, in the sale of a Spanish property will be taxed at 19%.
- For the tax years 2.009, 2.010 and 2.011 corporation tax will come down five points for SMEs with turnover below five million Euros, and with less than twenty-five workers.
For any other advice or assistance please do not hesitate to contact us.
Maria Lima
Tax Partner
ASEC Group
