Legalisation of housing on rural land in the Balearic Islands: an opportunity for property owners
The recently approved decree-law of May 2024 has opened an important door for the legalisation of buildings on rural land in the Balearic Islands. This transitional regime, which allows the legalisation of buildings for a maximum period of three years, represents a great opportunity for many owners who wish to legalise their properties, while at […]
WHICH TAXES DO INFLUENCERS OR CONTENT CREATORS PAY?
Freelance content creators have to pay tax on the donations they receive from their viewers. Live auctions, project donations or tips for specific content are a source of income for thousands of freelance content creators. However, they should be aware that they are not tax-exempt.The musician who performs live on Instagram and receives one-off tips […]
SELLING YOUR HOME – CALCULATING THE PROFIT What are investments for the owner are considered simple repairs by the tax office.
Against the backdrop of increasing property investment in the Balearic Islands, the Spanish tax authorities have come under fire for their tax treatment of investments in property improvements and refurbishments. In many cases, the tax office systematically rejects expenditure on property improvements and categorises them as simple repair and maintenance work. This categorisation prevents owners […]
Tax exemption for work abroad
The Income Tax Law (IRPF) provides for an important tax exemption for residents who work abroad. This tax concession, regulated in Article 7.p) of the LIRPF, makes it possible to exempt income from work carried out outside Spain up to 60,100 euros per year, provided that certain conditions are met. To be eligible for this […]
Foreign self-employed persons can now benefit from the Beckham Act
One of the regulations that has recently attracted the most attention on the Spanish tax scene is the so-called Beckham Law. This special regulation, named after the famous footballer David Beckham, offers significant tax benefits to certain posted workers who transfer their tax residence to Spain. According to the latest figures, more than 10,000 people […]
Personal Income Tax Campaign 2023 News
The 2023 tax return campaign is now underway, marking a crucial period for taxpayers across Spain, including the Balearic Islands. Starting on April 3, 2024 and ending on July 1, this period not only brings with it key dates to take into account, but also a series of significant developments that could have a significant […]
Changes to Rent Statements by Non-Residents
The recent change in Spanish tax regulations for non-resident owners renting out properties in Spain significantly simplifies the process of declaring rental income. Before this reform, non-resident landlords were required to file quarterly rental income returns through Form 210, but now they only need to do so annually. This change, which applies retroactively from 1 […]
Tax news for tax residents in 2024
Cryptocurrencies abroadFrom 1 January 2024 until 31 March, taxpayers resident in Spain must declare the digital assets they hold outside Spain to the tax authorities if their value exceeds 50,000 euros.In April 2023, the government approved the royal decree that obliges individuals and companies based in Spain to declare cryptocurrencies held abroad.The decree obliges the […]
Tax treatment of property renovation work: What counts as an investment and improvement
When selling a property, whether it is a house or a plot of land, the capital gain or loss is calculated by comparing the acquisition value and the realisable value. In addition, any investments and improvements made to the property increase the acquisition value and therefore reduce the capital gain realised by the taxpayer. Many […]
International double taxation: Spain grants taxation authorisation abroad in the case of agreements
The General Directorate of Taxation (DGT), a body under the Ministry of Finance and Public Works whose main task is to establish the criteria for the application of the different taxes, including income tax, has already provided us with answers in recent months.If the taxpayer teleworks from a foreign country with which Spain has signed […]