International Tax Newsletter - Winter 2011-12 - Spain

Several important tax reforms in Spanish legislation in the last few months include, inter alia: 


Prepayments tax
The percentage to calculate the prepayments tax to be undertaken by large companies to taxable persons whose turnover has exceeded the amount of EUR 6,010,121.04 during the 12 months prior to the start date of the tax years 2011, 2012 or 2013 has been raised:

  • The result of multiplying by five sevenths the tax rate rounded down when in the twelve-month net turnover of less than EUR 20 million.
  • The result of multiplying by eight tenths the tax rate rounded down, whereas in those twelve months, the net amount of turnover is at least 20 million but less than EUR 60 million.
  • The result of multiplying by nine tenths the tax rate rounded down, whereas in those 12 months, the net amount of turnover is at least EUR 60 million.

Loss tax base
Where turnover has exceeded EUR 6,010,121.04 in 2010, the offset of brought forward losses against the profits of 2011, 2012 and 2013 is limited to 75% of those profits if turnover is between EUR 20 million and EUR 60 million and 50% if the turnover exceeds EUR 60 million.  The maximum period for carrying forward losses is extended from 15 to 18 years.


The rate of VAT on the sale of new homes was reduced from 8% to 4% through the end of 2011.


The main change to income tax is to exempt capital gains arising on transfer of the shares resulting from private investment in projects driven by entrepreneurs, whose value does not exceed the acquisition of EUR 25,000 per year or EUR 75,000 per entity during the period from the establishment of the entity to three years.

In order to apply the exemption, both the entity and the purchase must meet certain requirements.


This royal decree is intended primarily to simplify the obligations of non-resident investors in fixed income financial instruments by exempting non-resident investors from obtaining a tax identification number for the following operations:

  • to acquire or transfer securities represented by certificates or book entries located in Spain
  • to subscribe, purchase, redeem or transfer shares or units in Spanish collective investment institutions or marketed in Spain. 

Non-resident status may be accredited to the appropriate entity through a tax residence certificate issued by the tax authorities of the country concerned or by a declaration of tax residence.

More information on these developments can be provided by Aischa Laarbi, PKF-Audiec, SA, through the EisnerAmper contacts listed on the homepage 

International Tax Newsletter - Winter 2011-12 Issue 

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