The Golden Visa programme, which for more than a decade has allowed foreign investors to obtain residence permits in Spain in exchange for making significant investments, is facing its final deadline. From 3 April 2025, the possibility of obtaining this visa through the acquisition of real estate will be closed, marking the end of an…

In February we are not free from tax obligations either. In this case, we have to file Form 347, an annual informative declaration that must be filed by businessmen and professionals who carry out transactions with third parties that, as a whole, exceed 3,005.06 euros during the fiscal year 2024. Some of the transactions that…

In recent years, the control of working hours has been one of the most debated issues in the workplace in Spain. The new regulation on electronic timekeeping is designed to ensure compliance with regulations on working hours and overtime, an issue that has become more relevant with the 2021 labour reform. This change requires all…

The beginning of the year marks a critical period for companies in terms of compliance with tax obligations. January is an intense month in which both quarterly and annual returns, VAT refund requests and the closing of the previous tax year must be attended to. Below we detail the main responsibilities that companies must manage…

The Official State Gazette (BOE) has published the Government’s new fiscal package, which came into force on Sunday 22 December 2024, one day after its publication in the BOE. BOE. This reform introduces a number of significant measures to the Spanish tax system, which are detailed below. which are detailed below: We come across a…

Dear customers, partners and friends, As 2024 comes to a close, we would like to express our sincere thanks for your trust and support throughout this year. It has been an incredible year that would not have been possible without each and every one of you. It is with great excitement that we look forward…

It is noticeable that the Christmas holidays are approaching, with the illusion in the streets full of people, the children running down the street, the Christmas lights of our beloved Calle Larios, and from MDG Advisors, we want to join in that joy, and inform you of a recent consultation of the Directorate General of…

Don’t miss this free webinar on smart financial planning for expats! 🗓 Date: Tuesday, 17 December ⏰ Time: 13:00 EST | 19:00 CET 📢 Experts in key areas will give you top tips: 💼 Financial Investing – Shane Clark, EuroAmerican Financial Advisors 📊 Tax Advice – Miriam Diouri García, MDG Advisors 🏠 Real Estate –…

In recent years, Malaga has established itself as one of the most attractive destinations for expatriates from all over the world. According to a study published by Internations, an expat website with more than 5 million users, Malaga has been voted the best expat destination worldwide. From its vibrant cultural life and enviable climate to…

What is the Non-Resident Income Tax without permanent establishment? The Non-Resident Income Tax is a tax that levies the incomes obtained in Spanish territory by individuals or entities that are not residents in Spain and do not operate through a permanent establishment. This tax is declared through Form 210: a tax form that must be…

Business Malaga is benefiting from the demand for services in the technology sector Consultancies, law firms, international schools, offices, furniture shops and real estate agencies are growing in the heat of this specific clientele. Technological Malaga is a reality that is more than established in the local economy and can be seen from different perspectives.…

When a taxpayer fails to pay their tax debts within the voluntary period, the tax authorities have several options to seize assets and ensure forced collection. One of the most common tools in recent years is the seizure of credits. Credit seizure procedures not only have an economic impact on the debtor but also commercial…

In Spain, according to the provisions of article 44 of Law 5/2021, individuals or legal entities that acquire a property to use it for their economic activity and include it in their current assets can benefit from the reduced rate of 2% of the Transfer Tax (ITP), instead of the general rate of 7%. This…

In the world of taxes, the Tax on Economic Activities occupies a special place in Spain. This local tax is levied on the exercise of business, professional or artistic activities. Therefore, if you are doing business in Spanish territory, the IAE is something you should be aware of. Entities with a net turnover of €1,000,000…

Today, the new tax reform is being debated in Congress, which may bring with it important measures for taxpayers who are affected by it, in the event of its final approval in the Plenary. Among the measures that have been debated in this tax reform, the following stand out: a) Tax cuts for SMEs and…

The devastating effects of the DANA that affected several municipalities in Spain have led to the adoption of a series of fiscal measures by the government. The measures were approved by Royal Decree-Laws 6/2024 of 5 November and 7/2024 of 11 November. The main provisions that have been implemented to support the self- employed, companies…

For some days now, Congress has been debating the introduction of a new tax: the tax on large inheritances. The party SUMAR has brought the debate to the table of the Congress, demanding the approval of this new tax as a fundamental requirement to give its support to the Government in the approval of the…

After finishing the third tax quarter and already with a view to complying with the census obligations that November brings with it with the Tax Agency and checking the obligations entailed by Form 232 – Informative declaration of related transactions and of transactions and situations related to countries or territories qualified as tax havens, we…

The Income Tax Declaration Campaign (IRPF) is a crucial time for taxpayers in Spain, and in 2025 this process will be modernised with the introduction of new payment methods. From this year, taxpayers will be able to pay their taxes by bank card and Bizum, which promises to make the process more convenient and efficient.…

November is approaching, and with it the deadline to apply for registration in the Monthly VAT Refund Register, also known as REDEME, has begun. This voluntary system is characterised by the monthly settlement of VAT, instead of quarterly, which is particularly favourable for companies that, due to the type of operations they carry out, usually…

In the Spanish registry system, the concept of "inmatriculación" refers to the process through which a property that has not previously been registered in the Land Registry is recorded for the first time. This process, governed by the Mortgage Law, is essential for providing legal certainty to property ownership. The recent amendment to this law,…

After the third quarter of the financial year and during the month of November of each year, there is an obligation to report certain information to the Tax Agency about the company’s activity during the previous financial year. We are talking about Form 232. What is Form 232? Form 232 is an information return that…

Telecommuting has significantly transformed labor dynamics, posing new challenges and opportunities in the relationship between employers and employees. A key issue that has arisen in this context is the tax treatment of the assignment of housing to employees who perform part of their work from home. According to consultation V0711-24, issued by the Directorate General…

Since 01 January 2023, products in the shopping basket such as milk, bread, eggs, vegetables, fruit, cheese and olive oil have enjoyed a VAT rate of 0%. This measure was introduced to combat the strong inflation experienced by our country at the beginning of the year 2023. Last Tuesday 01st October, VAT on all these…

It is true that once the summer holidays were over, it was time to get down to work with the third quarter taxes, but there has been a new TEAC resolution that gives taxpayers a hand, and we consider it convenient to take a few minutes away from the third quarter taxes to keep you…

Do you consider yourself to be a large company? According to the criteria of the Tax Agency, a large company is one that has achieved a turnover of more than 6,010,121.04 Euros in one year. This consideration gives rise to a series of census and tax changes from the following year onwards: – Notification to…

Electronic invoicing is becoming a reality in Spain and has recently come under the spotlight with the Royal Decree implementing Law 18/2022, Article 12, of 28 September, commonly known as the `Crea y Crece Law´, which aims to promote the creation and growth of companies in order to prevent and avoid tax fraud and which…

The Ministry of Finance has introduced a new system for correcting VAT self-assessments, allowing taxpayers to modify their declarations without having to wait for an official response. This change simplifies the process and facilitates the correction of errors or necessary adjustments in self-assessments. This new system is part of an amendment to the General Tax…

The new Organic Law 2/2024, of August 1, 2024, on equal representation and balanced presence of women and men, published in the BOE on August 2, 2024 and coming into force on August 22, 2024, is based on the equality before the law of all citizens as set forth in the first article of the…

We are pleased to share that our Managing Partner, Miriem Diouri García, visited the offices of Blick Rothenberg in London. Blick Rothenberg is a company with a long-standing reputation in accounting and taxation, known for its expertise and professionalism. During the visit, Miriem had the opportunity to meet with the Blick Rothenberg team to explore…

Our partner Miriem Diouri on behalf of MDG Advisors attended the Digital Business World Congress, the most relevant congress in Europe on exponential technologies and business growth with digital strategies. From 11-13 June at FYCMA, this event brought together more than 450 international speakers, global influencers and authorities who discussed new business models, disruptive innovations…

In this article we are going to analyse the fourth presumption of obtaining income included in article 121 of the Corporate Income Tax. This presumption deals with the existence of undeclared income if non-existent debts have been recorded in the accounting books, since the existence of a fictitious liability in the accounts is the counterpart…

Tax residence in Spain is mainly determined by the amount of time a person spends in the country. To be considered tax resident in Spain, it is required to spend more than 183 days a year in the country, or to have the main core or base of one’s economic activities in Spain. Tax residency…

In its ruling of 13 March 2024, the Supreme Court once again addresses the deductibility of directors’ and administrators’ remuneration for corporate income tax purposes. In previous rulings it had already established as a doctrine that non-compliance with commercial regulations regarding directors’ remuneration cannot necessarily lead to the loss of the material right to deduct…

It is commonly known in our Autonomous Community of Andalusia that the Law on Transfer Tax ( Law 5/2021, of 20 October, on Assigned Taxes of the Autonomous Community of Andalusia), in its article 44, allows real estate professionals to benefit from a reduced Transfer Tax rate of 2% on the purchase and sale of…

Many companies throughout their economic life require financing to carry out their business projects.   Our firm is familiar with this type of operation, which is becoming increasingly common when the investment does not normally materialise at the time of incorporation of the company, via share capital, or as a contribution from partners.   When…

The contribution of private assets without economic consideration to the community property is an operation worthy of being studied from a tax point of view, especially after the last ruling of the Supreme Court.   The subjection to the Tax on Onerous Patrimonial Transmissions is discarded, since in this case we speak of gratuitousness, instead…

On 27 December 2023, Royal Decree 8/2023 was published, amending the Law on the Solidarity Tax for Large Fortunes. This modification means that non-resident taxpayers who in 2022 were obliged to file Form 718 of the Solidarity Tax for Large Fortunes, can now recover part of the amount paid to the Tax Agency. Prior to…

Tax management is a crucial aspect of tax administration at both national and international level. In the area of international double taxation, the choice between exemption or deduction plays a fundamental role in optimising the taxes paid by taxpayers. However, it is important to note that this choice cannot be changed after the voluntary deadline,…

We are pleased to announce that our founder and Managing Partner, Miriem Diouri García, has been re-elected as a member of the National Board of the British Chamber in Spain. The re-election took place during the Annual General Meeting held yesterday in Madrid. In her role as a member of the National Board, Miriem will…

We were honoured to receive a visit from Alicia Izquierdo, Councillor for Innovation at Malaga City Council, at MDG Advisors. During her stay, we explored the transformative impact that technological development has had on traditional services in the province of Malaga. We discussed how the integration of technology has revolutionised various sectors, from customer service…

With the publication of Law 13/2023, of 24 May, important modifications were included in tax matters, among which we would like to mention the creation of the new figure of the self-assessment rectification, which replaces the dual system of complementary self-assessment and request for rectification foreseen in the General Tax Law (LGT) that we had…

In Spain, the plusvalía or also known as the Impuesto municipal sobre incremento de valor de terrenos de naturaleza urbana (IIVTNU) or simply “plusvalía municipal” is based on the theory that when a property changes ownership, its value increases over time due to factors such as inflation, urban development and market demand. However, the application…

Our partner Leticia Cayuela, member of the group of young people of the AEDAF and representative of the same in the Provincial Demarcation of Malaga attended yesterday in Madrid to the XVII National Day of studies of the AEDAF, which, counted with prestigious professionals who shared their experiences and knowledge in tax matters. In this professional…

As anticipated in a previous publication of this blog dated May 11, 2023, the enactment of Law 11/2023 of May 8, published in the Official State Gazette (BOE), has represented a relevant event in the modernization of the Spanish notarial system. This law, by incorporating Directive (EU) 2019/1151 of the European Parliament and of the…

Tax Form 720 is an informative declaration required by the Tax Agency that aims to provide detailed information on the assets and rights located abroad of taxpayers resident in Spain. The assets that have to be declared in this declaration are divided into three main groups: Bank accounts and deposits Securities, rights, insurances and incomes…

Unlike other economic activities, property rental has been subject to certain requirements in order to be considered as such for tax purposes, which we will discuss below. For Income Tax, according to Article 27 of the LIRPF, property rental is considered an economic activity when it is carried out by at least one person employed…

With the sale of a property, comes the calculation of a capital gain and for this, it is vitally important to reflect the acquisition value of the property sold. As a reminder, the acquisition value of a property will be formed by the actual amount of the acquisition plus the cost of the investments and…

After an intense month of January in professional offices, it ended with a pleasant surprise for non-resident taxpayers in Spain, with the introduction of modifications to the ministerial orders that approve the self-assessment forms 123, 210, 216, by means of Order HDA/56/2024, of 25 January, published in the BOE on 31 January 2024.   As…

From 2024, Form 721 will become compulsory for holding cryptocurrencies abroad and, therefore, the first financial year to be declared will be 2023. Below, we summarise the most relevant aspects to bear in mind, as the holding of this type of asset is becoming more and more frequent. Who is obliged to file form 721?…

The sale of companies whose assets consist of real estate should, from a commercial and tax point of view, be studied in detail in accordance with the regulations in force, as otherwise it could be classified as tax avoidance by avoiding the legal transaction of the sale and purchase of the real estate in question.…

Opportunity to recover Wealth Tax 2021-2022 Everything indicates that the Constitutional Court will issue a ruling on the constitutionality of the Wealth Tax for the years 2021 and 2022. In the fiscal year 2021, the Wealth Tax, through the General State Budget Law (“ Ley de Presupuestos Generales del Estado”), suffered an increase in its…

After a turbulent month of January fiscally speaking, February arrives bringing with it the Annual Informative Declaration of Transactions with Third Parties, which is filed by filling out Form 347. This form must detail the commercial transactions carried out with third parties during the previous fiscal year. This informative declaration has annual character and is…

The publication of Law 12/2023, on the Andalusian Budget for 2024, has brought with it relevant modifications to the 100% regional rebate on the Wealth Tax (IP), introduced by Decree-Law 7/2022, which led to tax residents in Andalusia not paying this tax in 2022. However, with the entry into force of the Solidarity Tax for…

During the week, MDG Advisors will join the faculty of the renowned business school ESESA in Malaga. Our partners Leticia Cayuela and Pablo Mallo will take over the VAT subject as part of the program of the Executive Master in Business Tax Advisory in the current academic year 2023-2024. At MDG Advisors we have always…

In previous blog posts, we have mentioned the main modifications to the Special Regime for Workers Posted to Spanish Territory and since 15 December 2023 the new format of Form 149 has been approved by the Spanish Tax Agency, to accommodate the new groups that can access the so-called Beckham Law from 1 January 2023…

As we have commented in previous publications, the special regime for workers posted to Spanish territory, better known as the Beckham Law, has undergone modifications following the publication of Law 28/2022, of 21 December, on the Promotion of the Start-up Ecosystem, which have led to the relevant corrections in the Personal Income Tax Regulations. Below…

In the business world, strategic financial decision-making plays a crucial role in the success and sustainability of a company and must also be in line with the requirements of tax compliance and corporate compliance. Among the options available to managers for the improvement of remuneration by the company are an increase in their own salary,…

Recently, on 6 December, Royal Decree 1007/2023 of 5 December was published in the Official State Gazette (BOE), approving the Regulation that establishes the requirements to be adopted by the computer or electronic systems and programmes that support the invoicing processes of entrepreneurs and professionals, and the standardisation of invoicing record formats. This new regulation…

Most of us tax advisors are working on the annual accounting and tax pre-closing of companies in order to be able to offer our clients the best tax advantage to reduce their tax burden for the financial year 2023. However, in view of this workload, we cannot forget that during the month of December there…

Although at first sight it may seem to be an abstract action that rarely happens, it is more common than we think that the Spanish Tax Agency may revoke the NIF or Tax Identification Number of a company and it can happen for several reasons. Some of the most common reasons may be that a…

On numerous occasions, individuals and entities may be exposed to being taxed on the same income, profit, or asset in more than one country due to discrepancies in tax regulations between jurisdictions. This tax issue can generate a duplicate tax burden, negatively impacting those individuals and legal entities that carry out their operations internationally. For…

The Tax Agency, in its tax collection work, has various tax procedures to verify and audit the economic activity of taxpayers within the tax administration itself, where it finds its regulatory motivation in articles 117 and 123, among others, of the General Tax Law (hereinafter, LGT).   One of these procedures is the limited verification…

Our firm advises taxpayers covered by the Special Regime for Workers Posted to Spanish Territory to review their tax situation for the 2024 tax year in November, as some of them may have to comply with certain census obligations. This special regime, also known as the Beckham Law, allows individuals who have acquired their tax…

Form 232 is an information return in which the Tax Agency is informed of related-party transactions and transactions and situations related to countries or territories classified as tax havens. Related-party transactions are regulated in Article 18 of the Corporate Income Tax Act. The deadline for filing this form is within the month following the ten…

During the month of November, companies based in Spain have the possibility of voluntarily applying for inclusion in the monthly VAT refund register (REDEME). This register has an interesting financial attraction for those companies that need to improve their cash-flow in terms of VAT refunds as, through monthly returns, they will be able to apply…

In the tax advisory world, November has historically been a month of “little” workload or during which we take the opportunity to dust off certain files and close them. This is mainly due to the fact that, in this month, there are no excessive filing deadlines, which gives us a certain margin for “creativity”. Since…

Now that we are familiar with the “temporary” tax on large fortunes, and after having received resolutions from the Tax Agency in which it seems that they are not in favour of giving their arm to twist in favour of the taxpayer, at least in the first instance (later we will see who wins the…

The Foreigner Identification Number (NIE) is a crucial element for all foreigners who wish to reside or work in Spain, whether they are EU citizens or not. This number allows them to identify themselves in legal transactions and administrative procedures in the country. The NIE is essential for foreigners who study, work or carry out…

In the field of real estate development and, specifically, in the execution of works carried out between developer and contractor, it is common to find the figure of reverse charge in this area; however, how does this figure work and how is it regulated? First of all, it should be noted that reverse charge is…

The order amending the Regulation on the Special Regime for Impatriates (Bechkam Law) will be approved soon, which means that the new groups that the Start up Law made possible, will be able to apply (spouses, self-employed with innovative activities and teleworkers). Important data:   – All these new groups will have a period to…

Article 36 of the Law of the Consolidated Text of the provisions issued by the Autonomous Community of Andalusia in matters of assigned taxes, approved in Legislative Decree 1/2018, of June 19, amended by Decree Law 1/2019, of April 9, establishes a reduced rate of 2% for purchases of real estate in the Junta de…

1/ If I am accepted by DNV, would I be a tax resident in Spain in the year of the concession? DNV does not turn anyone into tax resident in Spain. The fact of holding a DNV does not mean that you have to pay taxes in our country.   2/ If accepted by DNV,…

On returning from the holidays and at the start of the new academic year, we may find ourselves faced with a commercial obligation which, despite being far removed from the fiscal, tax or corporate obligations that must be fulfilled before the Tax Agency, Social Security or the Commercial Register, is of great importance due to…

For some years now, we have witnessed how Malaga has experienced a more than considerable increase in foreign investment, largely due to the search for the great potential offered by the province, whether from a business, private or tourism point of view. Thus, in 2021, Malaga was consolidated as the largest pole of attraction for…

Today we are excited to announce the launch of the 8th British Investment Barometer in Spain, which took place in Malaga. In this outstanding event, we are proud to have our company, Miriem Diouri García, as a speaker. The British Investment in Spain Barometer is a fundamental tool for understanding the evolution of British investment…

Law 38/2022, of December 27, 2002, brought important regulatory changes affecting the taxation of non-resident companies in Spain.   The first aspect to highlight would be the implementation, already for the financial year 2022, of the Temporary Solidarity Tax on Large Estates, hereinafter referred to as ITSGF.   This new tax, with which we should familiarise…

MDG Advisors is pleased to announce its collaboration agreement with SIMED, the Mediterranean Real Estate Exhibition, which will take place from November 16 to 18, 2023 at FYCMA, Malaga Trade Fair and Congress Center. SIMED is recognized as a key meeting point for professionals, companies and potential buyers and sellers in the real estate sector.…

Last Tuesday, 9 May, the new Law 11/2023, of 8 May, was published in the Official State Gazette (BOE), which includes important new features in the way of relating with notaries and carrying out procedures before these professionals. With the effects of the aforementioned Law and expected by the end of the year, the digitalisation…

MDG Advisors is pleased to have participated in the 8th UMA (University of Malaga) Job Fair, an event that brings together students and companies with the aim of promoting employment and continuous education. During the fair, our team of experts had the opportunity to interact with students and recent graduates, offering personalized advice on their…

MDG Asesores, represented by partner Leticia Cayuela, member of the national group of young experts, participated in the XVI National Study Day AEDAF, an essential event for all tax and fiscal professionals. The conference covered topics of great relevance in the current panorama, such as the information obligations of intermediaries derived from DAC6, the new…

Today, MDG Advisors has approved its Code of Ethics where all the principles and values on which MDG’s corporate culture is based and through which its employees and other related parties relate to each other have been gathered. This is the materialisation and development of MDG’s entire philosophy and good governance, which has been implemented…

I have an English limited company with money in it. Can the company buy a Spanish property ? I would like to rent the property for holiday lets and also use it. I am looking at the canaries and main land Spain. The simple answer to this question is yes. An English company can buy…

On 24 December 2022, Law 31/2022 on the General State Budget was published in the Official State Gazette (BOE), which includes tax modifications, such as: A) Personal Income Tax: – With regard to reductions, the amount for obtaining earned income is increased for certain income thresholds. Also, economically dependent self-employed workers are increased in 2…

From 1st January 2023 in Spain there will be a special tax on non-reusable plastic packaging, whether it is presented empty or whether it is presented as containing, protecting, handling, distributing and presenting goods. Non-reusable packaging containing plastic is included to the extent that it is designed to contain, protect, handle, distribute and present goods,…

“Technology facilitates best practices for compliance regimes in the development of transfer pricing”   These tools significantly help in price fixing between companies   The use of technology in transfer pricing Technology is now an important part of the business growth of multinational groups. The Organisation for Economic Co-operation and Development (OECD) established last year…

“The approval of the new Startup Law will mark a turning point in the sector and a turning point for the future”   What is the main news of this recent measure? Following the approval in the Spanish Congress of Deputies on 2 December 2022 of the Law for the Promotion of the Emerging Companies…

MDG Advisors, a firm specialized in tax and accounting compliance, continues its expansion with the appointment of Pablo Mallo Bárcena as partner in the Tax&International areas. Mallo, originally from Asturias and with a degree in Economics from the University of Oviedo, joined the Malaga firm after working in Malta, Algeria and the United Kingdom and…

Main issues for non-residents The Solidarity Tax is a major setback for large fortunes. In particular, in this text, we will focus on those aspects related to non-residents and how they are affected by the application of this new tax that is currently being debated in Congress. By way of introduction, we believe we should…

“Spain’s large fortunes will have to contribute more to alleviate the energy and inflation crisis”   Will the application of the Solidarity Tax on Large Fortunes really be effective?   The object of the tax and its temporal scope The regulation of this tax is aimed at directly improving the country’s economic position. Introduced on…

“The incentives for attracting foreign investment in the capital of the Costa del Sol are increasing and it is a trend that is on the rise”   Malaga: the ideal destination for foreign companies looking to increase profitability   Why is Malaga emerging as the most reliable alternative for foreign capital?   Introduction Malaga, in…

Last Thursday, November 3, 2022, the Government of Spain approved the Startups Law, a law that may come to place the country at the forefront in attracting investors. It includes important tax measures and relaxes procedures to encourage the creation of and investment in startups in the technology sector. It favors the establishment of teleworkers…

On September 29, 2022, Law 18/2022 on the Creation and Growth of Companies was published, which comes into force on October 19, 2022. We can say that it modifies and adds new regulations, to: The regulation to create a RSC (Limited Liability Company): with a share capital of one euro, introducing reforms to facilitate its…

NEW FISCAL MEASURES FOR NEXT YEAR   Last Thursday, the central government announced a package of fiscal and tax measures for next year 2023, which we will now highlight: Wealth: The intention is to legislate a new tax on the country’s great wealth, provided that the net worth is more than 3 million euros. Thus,…

As we mentioned a few days ago, the Andalusian government, led by Juanma Moreno, announced new tax measures for Andalusians. On 21 September 2022, Decree-Law 7/2022 of 20 September was published in the Official Gazette of the Andalusian Regional Government, amending Law 5/2021 of 20 October on Taxes Assigned by the Autonomous Community of Andalusia,…

Juanma Moreno, president of the Junta de Andalucía, has announced the abolition of the Wealth Tax. On the one hand, in the coming days, the regional government intends to abolish the wealth tax in Andalusia by subsidising it by 100%, as has already been done in the Community of Madrid, in an attempt to reduce…

Dear clients:   We are contacting you to inform you that we have recently made a change in our corporate image, becoming MDG Advisors.   Due to the growth we have experienced in the last few years not only nationally but also internationally, the new brand aims to respond to this development in a global…

On 1 July, Law 12/2022 of 30 June came into force in the Official State Gazette (BOE), regulating the promotion of occupational pension plans, which brings with it a series of tax implications, both in Income and Corporate Income Tax, as well as in Wealth Tax. What are these tax implications? – Personal income tax:…

Recently, the Tax Agency has approved two new forms, 172 and 173, in order to carry out a more exhaustive monitoring of the traffic of virtual currencies and their declaration. Both forms are for the informative declaration of virtual currency balances (172) and for the informative declaration of transactions with virtual currencies (173). The filing…

For years, virtual currencies, also known as cryptocurrencies, have been increasingly present in different transactions in national and/or international commerce and have always been exempt from taxation. However, one of the new features of the 2021 income tax return is the declaration of cryptocurrencies through a specific box for this purpose, thus raising various questions…

Miriem Diouri García, partner director of MDG Advisors is elected as member of the National Governing Council of the British Chamber of Commerce in Spain.

During the latest years, it has been (surprisingly) understood by the Tax Authorities in Spain, that a property situated in our country owned by a Non Resident entity, was supposed to “generate” rental income in Spain, for the mere availability of the asset for related parties such as directors or shareholders of the entity, and…

Why is the best time to make the regularisation now, before the regulation becomes final? Last January, the Court of Justice of the European Union ruled that both Form 720, where assets and rights located abroad are declared, and the penalty system derived from it, were contrary to EU law, as they impose an excessive…

As we previously mentioned in our blog, on 13 March 2021 the International Taxation and Double Taxation Agreement between Spain and the United Kingdom in relation to Gibraltar was approved, marking a turning point in the tax treatment of individuals and legal entities that have a tax relationship with Gibraltar. The agreement, which came into…

Leticia Cayuela, partner of the Tax & QC area is appointed member of the Board of National Experts of the Spanish Association of Tax Advisors (AEDAF). The AEDAF is a group of tax advisors at a national level who value the best fiscal and tax tools in order to provide the maximum experience to the…

MDG Advisors continues its expansion by appointing Leticia Cayuela Mayor as a partner in the Tax and Quality Control area. Leticia has a degree in Business Studies from the University of Almeria, and a degree in Economics from the University of Malaga. She furthered her academic training with a Master’s Degree in Finance, Banking and…

Recently, from MDG Asesores we have won a new case against the Regional Economic Administrative Court (hereinafter, TEAR) in relation to the deadlines that the Tax Agency has to notify the taxpayer and its challenge. In this specific case, on 15/05/2020, a deferral was requested for the payment of Non-Resident Tax in relation to the…

The Court of Justice of the European Union (CJEU) has declared illegal the regulation of the Model 720, which obliges taxpayers to declare assets abroad that exceed the amount of €50,000. The CJEU understands that, despite being a purely informative model, there are several legal issues that call it into question, which are as follows:…

On 9 November, Royal Decree-Law 26/2021 of 8 November was published in the Official State Gazette, which fills the legal vacuum left by Constitutional Court Ruling 182/2021 on the calculation to determine the taxable base of the now colloquially known “Plusvalía”, which we have previously discussed in our blog (link here). This legal route has…

On 13 March 2021 and with effect from 2022, an International Agreement on taxation and double taxation between Spain and the United Kingdom in relation to Gibraltar has recently been approved. The Agreement creates a set of rules to define tax residency, prevent double taxation and introduce transparency between Spain and Gibraltar on tax matters.…

As we announced in our blog last week, the Constitutional Court has published its sentence on the unconstitutionality issue 4433/2020 regarding the Tax on the Increase in Value of Urban Land or, colloquially known as “Plusvalía”.   CONTEXT OF THE TAX CONTROVERSY   In order to understand the context of the controversy surrounding this tax,…

Last 26th October 2021, the new Law 5/2021, of 20th October, on the Devolved Taxes of the Autonomous community of Andalusia, was published in the BOJA (Official Gazette of the Autonomous Community of Andalusia). This new regulation, according to its Second Final Provision, will come into force on 1st January 2022, except for the following…

The High Court has declared unconstitutional and null and voided a large part of article 107 of the TRLRHL, which was the fundamental pillar for the calculation of the taxable base of the municipal capital gains tax on the increase of urban land (“Plusvalía”). The unconstitutionality has occurred due to the fact that the calculation…

The entry into force of the Law on Measures against Tax Fraud (Law 11/2021 of 9 July) has meant a turning point in the taxation of non-EU non-resident taxpayers in relation to their assets located in Spain. With the entry into force of this law, the taxation of non-EU non-residents is equal to the taxation…

We are writing this post on the occasion of the publication of the new Law 11/2021, of 9 July, on measures to prevent and combat tax fraud. This law introduces regulatory changes that affect taxation, which we highlight below: The system of surcharges for late filing without prior notice is modified: according to (article 27.2 LGT): An additional…

We would like to inform you that yesterday, 27th April, Decree-Law 7/2021 of 27th April was published in the Extraordinary  BOJA number 37, reducing the rate of Transfer Tax and Stamp Duty Tax (also known as “ITP/AJD” in Spanish) to boost and reactivate the economy of Andalucía in the face of the crisis situation caused by the coronavirus pandemic…

It is undeniable that BREXIT is deeply changing trade relations between EU countries and the UK, and in tax matters this change is not far behind.   Today we would like to report on a specific case of change in taxation in Spain that may affect certain structures of British companies and partners with real…

Soft Landing   Relocating to Spain and getting lost with all the paperwork to be made? Let your hair down, we will assist you with all the necessary changes, so you can enjoy the weather and sunshine 🙂   Our helpful soft-landing service will make you to resolve the following (and numerous) issues:   a)…

Relocating your business offers many benefits, yet also comes with its share of business challenges: designing systems and processes, managing cash flow, securing the appropriate talent and training staff at large, etc. Another consideration exists that is just as critical – especially since it often presents unforeseen issues: Compliance. Failing to remain legally compliant can…

SPANISH IN-COUNTRY COMPLIANCE   Spain is commonly known as a country full of bureaucracy. Regardless the current COVID-19 crisis has led to a structural change, the reality is that public administrations in Spain still require loads of paperwork, especially in the business activities.   Companies and freelancers have to comply with numerous obligations, not only…

As we have exceeded the figure of 1,000 COVID-19 infections in Malaga city, we have moved to alert level 4 grade 2. From today, Wednesday 3 February 2020, in the municipality of Malaga city, the opening to the public of all retail establishments that are not considered as essential activity is suspended. The duration will…

In the context of uncertainty caused by COVID-19, many companies are looking for new ways to operate, whether if it means internationalization to find new markets abroad or a complete review of the structure to adapt to the remote work. This implies a loss of control in the management of the company. The best way…

February, the month of Compliance at MDG   Come and join us on our Compliance days where we would me analysing all sides of this important matter for international investors in Spain.   – Why compliance is essential in the current economic environment ……3rd of February, 2021 – Spanish In-country compliance …..10th of February, 2021…

With the approval of the Extraordinary BOJA number 6, last 16th January 2021, new measures have been implemented in Andalucia. All measures will be in force until 01 February 2021. We attach this bulletin and certificate of travel between municipalities for work purposes. Please, find below main details of these measures: – Limitation of mobility…

We would like to inform that last December 31st the General State Budget Law 11/2020 was published, from which we extract the most relevant points: *Personal Income Tax:  – The tax rate for incomes over Euros 300,000 is increased by two points. Except for modifications in the autonomous section, the marginal tax rate is 51.5%…

We would like to inform you that past 10th December, the Andalusian Regional Government approved new temporary and exceptional measures to contain COVID-19 during the Christmas period. Published in the “BOJA Extraordinario” Nº88 of 11th December 2020. It consists of two periods: from 12 to 17 December and from 18 to 10 January. Please find attached…

Find below a summary with the latest news, published in the BOE number 303 of 18th November, Royal Decree-Law 34/2020 of 17th November to support business solvency, the energy sector and tax matters:   1.- Extension of the grace periods and guarantees for ICO loans   The expiration deadline of the guarantees regulated under RDL 8/2020…

Last 16th November, the Andalusian Regional Government (“Junta de Andalucía”) signed an agreement with the Andalusian Confederation of Businessmen, in which it has been created a new Support Plan to self-employed and medium sized companies based in Andalucia, that includes measures and aids totalling 666.6 million euros, which will come in the form of direct…

We would like to inform you that from 00:00, Tuesday 10th November until 00:00, 24th November, the following measures approved by the Andalusian Regional Government with regards to Covid-19 prevention will come into force. Please find attached the entire new regulation for your verification. Malaga is at alert level 3 and affected by level 1…

Dear clients,   After publishing the Royal Decree 926/2020 in BOE and the President’s Decree 8/2020 in BOJA, it has been regulated, as you all may know, the curfew between 23.00 hours and 6.00 hours. The Junta de Andalucía has maintained this same timetable, therefore there are no modifications related to the rules published by the…

COVID 19 IMPLICATIONS ON 2020 PERSONAL INCOME TAX There is no doubt that 2020 Personal Income Tax ( PIT) campaign, that will begin in April 2021, will be an unprecedented one, taking into consideration the numerous legal changes and the exceptional COVID 19 situation . Thus, it is convenient to comment some implications that the…

BREXIT: THE END OF THE TRANSITIONAL PERIOD   Next 31st December 2020 the transitional period of Brexit will end. Even though there is a lot of uncertainty regarding the possibility of having a special tax agreement between UK and the EU, at present day, there is none and consequently, UK will be considered as a…

We are pleased to announce that on September 17th MDG Advisors received the Award for Best Business Trajectory 2020 from AJE. Among others, the jury included important personalities from the Malaga Town Hall, Technological Park of Malaga, Bic Euronova, University of Malaga, Junta de Andalucia and AJE Board of Directors.

At MDG we have adopted telecommuting as most things are adopted in life, with the urgency of a close deadline and where there was no room for procrastination. We had organised the remote system many months before but had hardly used it unless for the very extraordinary days we could not go to the office for…

From MDG, we would like to inform you about the principal measures taken in this regulation. However, we would like to inform you also that as from tomorrow, there will be more measures published and the ones we already have will be clarified. We are living a confusing time and little rigour in the regulation…

We are happy to announce that we have taken a new step on the digital transformation of our procedures: we are already in the cloud and we are proud of it! At MDG we have always been very focused on walking alongside technology, as we trust on the new IT era to ensure smooth communications…

Dear clients,  From Mdg Advisors, we would like to inform you about the new measures implemented by the Government, through the publication today of the regulation “Real Decreto-Ley 8/2020”, which may affect the self-employed/ freelance.  First of all, we would like to inform you that we are awaiting the development of these regulations, as well as we…

Today, 31th January, the UK leaves the European Union and we would like to inform you briefly in tax terms about it.   Finally the Brexit Agreement has been signed, but now begins a transition period until next 31th December 2020. During this transition period, EU laws will continue to be in force for british…

The deal arranged by PSOE and Unidas Podemos last 30th December has provoked an agreement that both parties have called “Coalición Progresista. Un nuevo acuerdo para España”. This agreement includes, amongst others, the partial abolishment of the labour reform approved back in 2012, increase of Minimum Wages and a series of fiscal measures. The main points of…

For all those non-residents outside the European Union (EU) and the European Economic Area (EEA) who paid the Tax on Inheritance and Donations years ago, the decision made by the Spanish Supreme Court on February 19 has been good news. The Spanish Supreme Court finally ruled that Spanish internal regulations discriminates non-residents in relation to…

The control on the daily working times in Spain is no longer a company policy matter; it has become compulsory since 12th May. The new regulation was published on Royal Decree Law 8/2019, which was effective last April, 12th, and established one month period for all companies in Spain to implement anyhow this mandatory control.…

  Despite of the sun, the beach and the Andalusian way of life, there are other factors that should be considered when thinking of buying a property in Spain. It is surprising to see how, due to the lack of professional advice, many non tax residents with properties in Spain hardly know anything about their…