Harris Lipman are Professional Chartered Accountants & Insolvency Practitioners in London

Tax & Accounting News

Important Tax Changes in Spain

24/04/2008

Chartered Accountants Harris Lipman are informing individuals of some new government proposals in Spain which will affect British, and other expatriates.

The main changes include

  • Elimination of the annual charge for Wealth Tax, as from 2009.  This is a charge levied on assets and property located in Spain, and is charged on 31st December each year.
  • A new deduction for earned income, including pensions, equal to 0.9% of the net family disposable income.
  • Improved tax treatment for refurbishment of buildings.
  • Accelerated repayment of VAT.
  • Greater flexibility for mortgage borrowers to renegotiate the term periods of their loans, and a reduction in the associated costs.
  • Improved tax treatment for non residents who invest in public debt instruments.

Partner Barry Lewis comments: “The detailed rules were approved by the new Spanish government at its first meeting, and will be further developed over the coming weeks.  The purpose of the changes is to stimulate the economy and encourage more foreign investment.”

If you think you may be affected by the changes, or for further information, contact Harris Lipman on 0208 446 9000.

 

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