Main Changes To Accounting Procedures for Self Employed from Jan 2018

Working From Home From 1 January 2018 those declaring their taxes using the direct estimation method are able to deduct part of the utilities expenses of a property partially used for their economic activity and also living expenses that directly relate to the economic activity. Article 11 of Law 6/2017 adds letters b) and c), with effect from January 1, 2018, to rule 5 of section 2 of article 30 of Law 35/2006, of November …

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Law Approving Urgent Reforms For Self Employed Workers comes into force

The Law on Self-Employment Measures  intended to make life easier for the self-employed  passed unanimously in Congress and has now passed in the Senate without change. Some measures take effect the day after their publication in the BOE  on the 25 October 2017 while some do not come into force until January 1st 2018. Some of the most welcome measures in the  “Ley de Reformas Urgentes del Trabajo Autónomo” are : Measures for start-ups As from the 1st …

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Spanish Will

If you own a house in another country, you are most strongly advised to write a Will in that country to cover the property there – In Spain this means visiting notary and having the document drawn up in Spanish. Trying to administer an estate in Spain without the correct Will is like trying to walk in treacle! Remember When thinking about who should receive your assets, it is important that you consider all your possessions, …

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Embargos

Contrary to popular opinion a vehicle CAN be transferred to a new owner with an lien (embargo) against it, this depends on the type of debt and also the stage proceedings to recoup the debt have reached. This can cause problems for the new owner so it is essential to obtain a report (Informe de vehiculo) before handing over any money. If you have already purchased or the debt is your own, what can you …

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Dealing with your local town hall

You will almost certainly have to deal with the local town hall at some point. They vary slightly in the way they do things from place to place, but the underlying procedures are the same. You may go to the town hall itself or you can often transact business at sub offices nearer to where you live, particularly for the costal regions. They will deal with the census (padron) information, and will issue Certificados de …

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Spanish Tax Allowances 2017

Personal allowance Under 65 years old 5,550 Euros 65+ 6,700 Euros 75+ 8,100 Euros Child allowance First child 2,400 Euros Second child 2,700 Euros Third child 4,000 Euros Each further child 4,500 Euros Elderly relative living with family whose income is less than 8,000 Euros pa: 65+ 1,150 Euros 75+ 2,550 Euros Maternity allowance 2,800 Euros per annum per child under three years old. Earnings related Personal Allowance (for employees) For taxpayers with salaries of …

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Tax Rates for 2017

Income Tax From (Euros) To (Euros) State tax % Regional tax % Total tax % 0 12,450 9.50 9.50 19.00 12,450 20,200 12.00 12.00 24.00 20,200 35.200 15.00 15.00 30.00 35,200 60,000 18.50 18.50 37.00 60,000 + – 22.50 22.50 45.00 Capital Gains Tax Rates Residents First 6,000 Euros: 19% 6,000 – 50,000 Euros: 21% 50,000 + Euros: 23% Non-residents 19% Allowable Depreciation Straight line method can be used for any depreciable asset. Reducing balance method …

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Buying a Business in Tenerife

If you are NOT thinking of buying a freehold business property, then in general what you are “buying” is what is called here a “Traspaso”. This is a private transfer type of arrangement and what you are paying for is goodwill, stock, fixtures and fittings in the premises (if they are not the property of the premises owner) and also getting the existing business holder to give up the right to what ever is left …

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Inheritance Tax: IMPUESTO SOBRE SUCESIONES Y DONACIONES

INHERITANCE MATTERS AND DEATH DUTIES FOR BRITISH PASSPORT HOLDERS LEAVING PROPERTY IN SPANISH TERRITORY   This is a complicated process and you may well decide to appoint a solictor rather than try and deal with the matter your self. The main difference between British and Spanish rules is that spain does not accept the concept of the “estate” of the deceased being taxed, in Spain the BENEFICIARIES of the deceased are individually taxed and importantly …

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Registering your child for a state school in Tenerife

If your child is staring school for the first time you need to sign them up in March/April for the following September. If they are transferring from a UK school you can apply at any time (obviously not school holidays) but may have to wait for the next term to start. You must visit the school administrator of the appropriate school in your cachement area, where you will be given a list of all that …

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Can I get Health Care In Spain?

The Spanish National Healthcare Service is considered to be one of the best in Europe. Most statistics show the  the equal of the UK NHS and in some cases better. Access to this service is freely available to EU citizens as long as you have taken the necessary steps to prove your entitlement to the Spanish authorities, which in the case of  a retired person’s S1 document  will include applying for a Green  Residence registration certificate. The rules …

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Vehicle and Driver Fines

If you are unlucky enough to be fined for a traffic offence (speeding etc) and you have been sanctioned by the Guardia Civil, you can pay the fine online with your credit or debit card and if you do it within 20 days of the fine being issued you save 50% The link is here and you must have the paperwork for the fine to hand with the reference number. If you can’t or don’t want …

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CAR SALE / PURCHASE CHECKLIST

Making sure the vehicle is either in your name officially (or removed from your name if you are selling) is a more complicated process in Spain than it is in the UK Seller Photocopies of: NIF Or if non Spanish: White NIE in date plus Passport OR certificado de registro plus passport Originals of: Ficha Technica (car log Book)  SHOULD have a current ITV stamp with at least 1 month’s life left. (otherwise the vehicle …

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Assets Reporting – modelo 720

Those who are newly arrived and fiscally resident in Spain  must present a modelo 720 which reports to the Spanish tax authority their assets exceeding 50,000 euros in any one of various categories which are held abroad. This could be Property owned or bank accounts held in the Uk for example Taxpayers who presented the modelo 720 in previous years before, you must resubmit again in the following cases: When any assets and rights that …

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What to do if you are living permanently in Tenerife and are retired or coming up to retirement age.

There will be no change to the rights and status of EU nationals living in the UK, nor UK nationals living in the EU, while the UK remains in the EU.   If you have previously worked in Tenerife, you will find it has an effect on the way you claim your UK pension entitlement when you come to retirement age. How do I claim my UK pension?  You should be sent a EC rules claim …

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Income Tax in Spain – Declaración de la Renta

Every year the Spanish tax man doles out billions of euros in tax rebates. Average rebates work out at around 780 euros each, for low to medium income tax payers. They can do this because they have already had your money. Unlike in the UK, where the tax man sets allowances against income in advance, in Spain, most people have a straight percentage of their gross pay deducted from their pay packet or they pay …

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