25
Apr

What is Equity Tax and what should Barcelona tenants be aware of

The Spanish government has announced a number of important changes to the Spanish income tax rules. Therefore here an explanation of the new rules of taxation and what the effect is for tenants. 

  1. Transmissions and real rights on urban properties:
    – 10%, accrued taxable events from August 1, 2013.
    – 8% between 1 July 2010 and 31 July 2013.
     
  2. Transmissions and real rights over officially protected homes:
    – 7%.
  3. Transmissions and real rights on rural property:
    – 10%, accrued taxable events from August 1, 2013.
    – 8% between 1 July 2010 and 31 July 2013.
  4. Transfers of securities and subscription rights of Article 108 of Law 24/1998, the stock market:
    – 10% for taxable events accrued from August 1, 2013.
    – 8% between 1 July 2010 and 31 July 2013.
  5. Transfer of a property that has to be the residence of a large family:
    – 5.00%.

Requirements to apply the reduced rates:

  • The taxpayer must be a member of a large family. A large family that is composed out of three or more children, or one that has two children and at least one of them has been diminished or is incapacitated for work.
  • The sum of the total taxable income, minus personal minimums and family members of the household on the income tax of individuals must not exceed 30,000 euros. This amount must be increased by 12,000 euros for each child exceeds the number of children that the law requires to have the status of large family.6. Transfer of a property that has to be the residence of a young:
    – 5.00%.

Requirements to enjoy the reduced rate:

  • The taxpayer must be 32 years or less.
  • Your total taxable income, minus the personal and family minimum, in its latest tax return on income of individuals can not exceed 30,000 euros.7. Transfer of a property that has to be the residence of a person with      physical, mental or sensory decrease: 5.00%.Requirements to enjoy the reduced rate:
  • The degree of disability must be equal or greater than 65%.
  • The sum of the total taxable income, minus personal minimums and family members of the household for the purposes of income tax of individuals can not exceed 30,000 euros.
  • The fact must attend handicap the taxpayer or any member of your household.
  • You have to prove the alleged disability and their degree with a certificate of ICASS. It also has to produce documents describing the income of the household.

8. Transmissions and movable real rights, except means of transport:
– 4.00%

9. Means of transport:
– 5%

10. Administrative concessions:
– 4.00%

11. Security rights, pensions, bonds, loans and obligations and conditions                      subsequent: 1.00%

Leases of urban or rural properties:

  • For taxable from 1 January 2015 made 0.50%
  • From January 31, 2014 to December 31, 2014: 0.30%
  • Until January 30, 2014:
Base en euros
Euros
Hasta 30,05   0,09
De 30,06………. a…………. 60,10   0,18
De 60,11………. a…………120,20   0,39
De 120,21…….. a…………240,40   0,78
De 240,41………a…………480,81   1,68
De 480,82………a…………961,62    3,37
De 961,63…….. a ……..1.923,24    7,21
De 1.923,25….. a…….. 3.846,48  14,42
De 3.846,49.. a……….. 7.692,95  30,77

De 7.692,96 en adelante, 0,024040 euros por cada 6,01 o fracción.

Tenants should be aware of the following:

  •   The general flat rate will decrease from 24.75% to 24% from 2015 onwards, and to 19% if the taxpayer is a resident of an EU Member State or of a European Economic Area country.
  •   A 60% reduction on the net rental income will only apply in respect of positive net rental income, and the 100% reduction in respect of tenants under 30 years old is eliminated.

Source: Generalitat de Catalunya & EY

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