MAIN CHANGES IN TAX LEGISLATION FOR 2015
Personal Income Tax (Spanish initials, IRPF)
- TAX RATE:
Both the tax scale and the number of brackets are reduced, and the thresholds of personal and family income to be taxed are increased. Impact foreseen by the Government on the tax:
- Income below 30,000 € per year, 19.3% average reduction
- Income below 24,000 € per year, 23.5% average reduction
- Income below 12,000 € per year will not be taxed
- TAXATION OF INTERESTS, DIVIDENDS AND GAINS:
- Up to 6,000 € it goes down from 21% to 20%
- From 6,000 € to 50,000 € it goes down from 25% to 22%
- From 50,000 € it goes down from 27% to 24%
- Savings income 20%
- Professionals 19% (15% if earnings are below 15,000 €/year)
- Administrators 37% (20% if turnover is below 100,000 €)
- Rents 20%
- Gains and Losses 20%
- ABOLITION OF THE 400 € DEDUCTION for earned income or earnings derived from economic activities.
- 1,620 € REDUCTION for ECONOMIC ACTIVITIES WITH EARNINGS BELOW 8,000 €. The reduction will gradually diminish until being cancelled at 12,000 €.
- 1,200 € DEDUCTION for ‘LARGE FAMILY’ or DISABLED PERSONS:
It is applicable to taxpayers who perform an activity either as self-employed workers or as employees. A monthly advance payment (100 €) can be applied for. If it is a ‘special category’ large family, the deduction is of 2,400 €.
- ABOLITION OF DEDUCTION FOR RENT AS OF 2015.
- ONLY 60% OF THE EARNINGS WILL BE TAXED IN RENT FOR HOUSING.
- CAPITAL TRANSFERS: Monetary updating coefficients will not be applied as of 2015; more taxes will be paid for property transfer.
- UNDECLARED FOREIGN PENSIONS: They can be regularised until June 30th 2015 without any penalties, surcharges or interests.
Company Tax (Spanish initials, IS)
- TAX RATE REDUCTION:
- general rate it goes down from 30% to 28%
- rate for small- and medium-sized enterprises it stays at 25%
- new enterprises first positive year and following 15 %
- CIVIL LAW COMPANIES WITH A COMMERCIAL FORM: they will now be taxed for the IS with the obligation of accounting in accordance with the Commercial Code.
Non-residents’ Income Tax (Spanish initials, IRNR)
- TAX RATE:
- General rate: it goes down from 24.75% to 24.00%
- Interests and dividends: it goes down from 21.00% to 20.00%
- Capital gains: it goes down from 21.00% to 20.00%
- Up to 12,000 € 8 %
- Bracket between 12,001 and 18,700 € 30 %
- Bracket from 18,700 € 40 %
- EXEMPTION ON CAPITAL GAINS DERIVED FROM SELLING THE USUAL PLACE OF ABODE if the amount obtained is REINVESTED IN A NEW USUAL PLACE OF ABODE.
- EU RESIDENTS WHO ARE NOT RESIDENTS IN SPAIN can deduct the same expenses as residents from their taxes.
Inheritance and Gift Tax (Spanish initials, ISD )
- Residents in a European Union member state or in the European Economic Area will be able to apply the costs deductions of Spanish regional legislation concerning this tax under the same conditions as residents in Spain. This will mean considerable tax savings.