More expected changes on taxes in Spain!!
Minister for the Treasury and Public Administration Services, Cristóbal Montoro
I am afraid that if you have not recovered from the increase in IVA (VAT) in Spain – which has gone up to 21% – then you will not be happy to hear that the Spanish Government is now stating that they may increase further taxes.
The Government wants to promote saving for the medium and long term, so they plan to penalize heavily those who make profits in less than one year.
The plan includes heavily taxing profits obtained by selling properties (business, premises, houses, flats etc) within the year of their acquisition.
If this plan is approved then it will make a huge difference to you if you are investing in Spain for short term profit.
As the law in Spain stands now, if your profit is up to 6.000 €, you only have to pay 19 % on your profit BUT, if your profit is over 6.001 € and upwards, then your tax rate is 21 %.
If the new plan is approved, then the tax rate in Spain would go from 24.75 % ( lowest rate) to 52% (highest rate).
However, you should note that the taxes here do not apply to your main and only property!
If you have any problems dealing with tax issues then do please feel free to contact me.
Carolina Just Miro