Majorca Property News

Experts Commission shall submit reports to the tax reform

The taxation on real estate acquisition should remain unchanged. The direct taxes among others the income tax (IRPF) are lowered and indirect taxes, among other things the tobacco tax - excluding the VAT (IVA) - to be increased.

The expert commission appointed by the Spanish Government puts his 444 -page report which analyzed the Spanish tax system and made recommendations, including a reorganization of the social order to relieve the companies.

The principal recommendations of the expert committee are:

- Removal of subsidies and special rules.

- Simplification and reduction of the calculation of income tax.

- Tax relief on savings.

- Complete revision of property tax IBI.

- Removal of the property tax from the income tax.

- Reduction of corporation tax to 20%, maximum 25 %

- Immediate abolition of the wealth tax.

- Inheritance uniform for the whole of Spain of maximum 4-10%

- Abolition of stamp duty AJD,

- Simplification of VAT (IVA) with the aim of the reduced aligns (10 %) or super -reduced (4%) tax rates to the general tax rate (21%), so a hefty increase. Except the VAT for real estate sales, tourist services and public transport.

- The energy taxation, in particular shaping the new oil tax.

- Increase the alcohol tax, except for wine

- A fairer distribution of social

Was re-invented the "non- resident Resident " (resident no domiciliado ) to use with the aim of the Spanish tax law on foreigners as a marketing tool to attract highly skilled workers to Spain which then pay 24.75% tax on income developed in Spain . Pensioners should pay any more taxes in Spain. Currently, retirees in Spain have nothing more than a property that is equal to three types of tax, land tax, property tax and income tax.

The administrative act for obtaining the Spanish tax number, NIE will be simplified.

The Form 720, which information is requested for the interested, not even the state of residence, is to be abolished.

With reference to the fact that foreigners or tourists should be more interested in tourist zones as long as possible to keep in place the nonsensical scheme is the

Non -EU citizens who invest more than 500.000 € in a property obtaining a residence permit for more than six months a year, but that also automatically be subject to unlimited tax liability be abolished.

The notional taxation of the self - use of property for non-residents has to be abolished. The newly created status as "non- resident Resident“, shall apply for a maximum of ten years.