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 28, of the Income Tax for Individuals and states the following: I. Contributors whose economic activity is conducted in their habitual residence In these cases, 30 percent of the pro-rata …

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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 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 the existing business holder is giving up the right to what ever is left on their premises rental contract. A much better format is to negotiate a proper lease “cesíon” – but this is not so readily accepted by Tenerife landlords! …

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