Spain is one of Europe’s most populous countries; since
the restoration of the monarchy in 1975, Spain’s economy
has grown consistently and it is now one of Europe’s
largest economies. Spain joined the European Union in 1986
and adopted the Euro in 1999, though the first Euro coins
weren’t issued until 2002, when the single European
currency finally replaced the Peseta.
The global recession has hit Spain’s housing boom particularly
badly as the construction industry was the cornerstone of
much of Spain’s growth during the decade up to 2008.
GDP grew just 0.9% in 2008, and shrank in 2009 by 3.7%.
GDP per capita was EUR25,000 (USD35,000) in 2008, and EUR
24, 074(USD33, 700) in 2009.
Service industries represent two thirds of GDP wealth. Mainly
due to the housing bubble bursting, unemployment rocketed
to nearly 14% in early 2009. Inflation stood at 0.4% in November,
2009 following a period of decline.
With a 30% corporate tax rate, Spain has never been viewed
as a particularly low tax country, and although there are
some incentives (including lower rates) to be had (in certain
areas, and under certain circumstances), the government is
currently battling a recession and soaring budget deficit;
in the 2010 budget, delivered in September 2009, the government
flagged up its intention to increase the standard rate of
VAT from 16% to 18% and the reduced rate from 7% to 8% (from
July 1, 2010), to abolish the annual EUR400 tax deduction
afforded to all employees, and to increase the capital gains
tax rate (on gains over EUR6,000) from 18% to 21%.
A survey recently published by global accounting and consultancy firm, UHY, has found that while business start-ups in Dubai declined 4.8% over the overall study period of 2006-10, new business launches jumped 53.1% in 2010. RSS
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As part of a package of measures designed to address the effects of the economic crisis on the country’s economy, the Spanish government has revealed that it will be offering loans to hard-hit small businesses and self-employed workers. RSS
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Marking a dramatic about-turn, the Spanish government has confirmed plans to introduce
a ‘notable’ rise in value-added tax and to increase special taxes imposed on alcohol and tobacco next year. RSS
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During a recent address to congress to present and explain the government’s
2012 budget, Spain’s Secretary of State for Finance Miguel Ferre underscored
that the tax measures provided for in the budget plans will enable the country
to achieve its fiscal consolidation targets. RSS
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Leader of Spain’s main opposition Socialist Party Alfredo Pérez Rubalcaba has recently announced his party’s
intention to contest the constitutionality of the government’s planned
tax amnesty, to prevent implementation of the ruling People’s Party’s latest proposals. RSS
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I am facing a dilemma and would like to invite any reader to advise me.
I am a Brit who has lived outside UK since 1993- initially in Belgium (5 years) & subsequently in 4 African countries. After a year outside UK, the UK Inland Revenue confirmed my status as ‘non-resident’ for tax purposes and as I have had no income in UK, I have not completed a UK tax return for many years. I visit UK very rarely, normally for one or two weeks per year.
In May 2011, I was made redundent by my employers, who were downsizing. This coincided with a move to retire in the Netherlands, where I now have official residency (my wife is Dutch). I thought that, at 63 years of age, I would be unlikely to find suitable employment; in fact, I have not tried hard and had resigned myself to permanent (but slightly premature) retirement.
However, to my surprise, I have recently been approached (through a mutual acquaintance) by a company that wishes to use my skills on a project in the Isle of Man. The role, if & when confirmed, would see me working for about 10 days a month in Isle of Man, with about 5-7 additional days per month, working from home. Contract will be for about two years. The firm has asked me to confirm if I would prefer to be paid (and therefore be taxed) in Netherlands or Isle of Man, the idea being that I create a self-employment entity for this employment. I have no data on which to base a response. Given Isle of Man's traditional ‘low tax ‘environment, are there any benefits to declaring an income in IOM? Are there any Isle of Man residency implications? Netherlands takes a tax cut on total world wide income, and, as I have never had any contact with the Dutch authorities, I am reluctant to start such a relationship now. Do I have to declare income in both countries, with a breakdown prorata to the time spent in each jurisdiction? Should I declare income to UK Inland revenue?
If anyone has pertinent advice on these points, I’d be grateful to hear them.
Hi, I live in South Africa, and along with 2 business partners (one in South Africa and one in Ireland - all South African citizens though) are setting up a company that designs Smart phone applications. As they will be sold on the various platforms (none of which operate out of South Africa)we have to list our company as operating out of Ireland anyway. As such, we have decided to set up our company in the best tax country and are wanting info on whether Jersey or Malta is best? If anyone has some inside info we would really appreciate it!! Thanks!Mary
Just wondering if anyone 'on the ground', as it were, might be reading and able to help me...I was considering relocating my hairdressing business from the UK to Ireland before the economy started to go properly belly-up...now, not so much.
Are things as bad as they seem over there, or is it being over-hyped by the media? And is the government still keen to support small business people? Cos if not, I'll look elsewhere...
I am moving full time to France in Jan 2012 where I will be working as a freelance contract engineer to a number of Australian based companies. It is my choice to move to France not a work requirement. I will be renting my house out in Austrlalia and renting a house while I am in France. I hold both EU & Austrlain citizenshiip. I am married with 2 young children. Approx total family income $100k AUD. Do I pay tax in France or Australia or both ? Any help or guidance would be much appreciated.France move
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