New Tax Changes in Spain

On 27 November 2014 the government approved three laws amending the Income Tax on Personal Income, Income Tax and Value Added Tax.

Filling the Tax Form
Of these changes, some worth noting are:


Withholding Tax Rate from 1 January 2015:

– In 2015 the percentage of retention and dividend income applicable to self-employed professionals, will be reduced in general from 21% to 19%   and by 2016 will be cut to 18%.

– Retention for self-employed professionals with incomes less than 15,000€ will drop from 21% to 15%.

– The Rate of 21% withholding rents changes to 20% (19% in 2016)

-The General taxation of non-residents will fall to 24%, and to 19% in 2016 if the taxpayer resides in the Member States of the European Union.

-The Foreigners working in Spain (except professional sports) will be taxed as non-residents at a rate of 24% for the first 600,000 euros compensation, and for five consecutive tax periods.



From 1 January 2015, will be considered as income from economic activities (instead of earned income) earned by the taxpayer from a participating institution in the capital (ie, it is a member ) arising from the performance of professional activities, when the taxpayer is included in the special self-employed (or an alternative mutual social welfare).

Income Tax:

-Deductions For new families or dependents (children and parents) with disabilities who receive 1,200 euros to 4,800 euros if cumulative add several of these situations. You can ask the Tax Agency payment of these three deductions in advance at a rate of 100 per month.

-In The gains from the sale of houses disappear offset coefficients (gains benefits of a good asset acquired before 1995) for the transfer of assets worth more than 400,000 euros (including real estate and other assets ) and disappear completely coefficients updated value.

-The Capital gains for those over 65 years old are exempt if they are transformed into annuities to supplement the pension, to a maximum of 240,000 euros.

-The Capital gains generated by a payment in kind or desauci exempt.

-The Compensation for dismissal without s’ expands to 180,000 euros and allows the reduction of 30% even if the compensation is received in installments.

-To Promote patronage ‘s general increase the deduction for donations up to ten points. (from 25% to 35%)

-To Expand participation in social patronage is set a 75% deduction for donations less than 150 euros.

-The Exemption of dividends up to 1,500 euros will be deleted.

-The Deduction for rental housing tenants usually disappear under previous contracts for 2015.

– The tax exemption landlords had when they rented the house for children under 30 years disappears.

– State Exempt income earned by bank accounts or life insurance maintained for a minimum of 5 years and that is not always bring more than 5,000 euros per year.

– Removes the distinction of the gains in less than a year, are taxed at the taxpayer’s marginal rate and will do the types of savings.

-The Maximum deductible contribution pension plans will be 8,000 euros.

-It Reduced from 10 to 5 years the minimum period of one individual systematic savings plan (SSP).

-You Can recover amounts pension plans within 10 years.




-In Compliance with a judgment of the European Court will rise at the rate of 21% Intermediates preparation of medicines, medical equipment, appliances, medical instruments.

-It Will maintain the reduced rate of 10% products designed to alleviate deficiencies, such as prescription glasses and contact lenses, prostheses, wheelchairs or crutches, as well as gases, veins, eye patches or kits.

-The Sector of flowers and ornamental plants have a reduced VAT of 10%, compared to 21% that was taxed.

-EBooks will be taxed in the country where they are downloaded.

-Tributaran Destination in the online services, telecommunications, radio and television when the recipient is an individual.


Corporation tax

-They will cut 30% to 28% in 2015 and 25% in 2016, less credit institutions and companies engaged in the exploration, research and exploitation of hydrocarbons.

-The New companies taxed at 15% in the first tax period that the tax base is positive and the next, unless you are entitled to a reduced rate.

-The Limit to offset tax losses are calculated on taxable income prior to the application of the new book capitalization.

-The Compensation of the loss carryforwards is limited to 60% from 2016 to avoid recourse to borrowing, although applied on the basis of one million euros to not hurt SMEs.

-The Spanish films will deduct 20% of the first million euros invested and 18% of the remaining three million.

-The Development activities initial demonstration projects or pilot projects related to animation and video games will apply the 12% deduction of the expenses incurred during the tax period directly related to these activities that effectively apply its execution and consist specifically for individual projects.

-Deduction of 20% to support the production and exhibition of live performances of music and performing arts.


This text has been directly translated from Cabre y Assosiats newletter. For more information on how the new tax laws will effect you please contact the accountants directly at:


Cabre y Assosiats

933 429 690


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