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Update II COVID19

The Government announced the extension of another 15 days of quarantine.

This means that businesses won’t be allowed to open until at least the 14th of April, on the condition that this is not extended again.

Our office has already helped many of our clients who were forced to close businesses according to the Royal Decree, by submitting an ERTE (TEMPORARY EMPLOYMENT REGULATION).

This means that they won’t need to pay social security on their employees and that they will receive an unemployment benefit until the State Alarm is lifted.

Some other businesses and autonomos have decided to reduce the number of hours of their staff, in order to help their businesses keep going.

We are now helping autonomos and businesses without employees, to apply for an employment benefit and therefore a suspension of the autonomo payment.

  • This can be made straightaway for those businesses and autonomos who were forced to close their business, according to the article 10 of the Royal Decree 463/2020.
  • However, nothing can be done in this next month and we will need to wait till the 1st April which is the deadline we have been given to make these applications. This is because clients will need to have and prove they have seen their sales reduced by a minimum of 75% over the period of a month, compared to the average of the sales made over the last 6 months, in order to qualify.
  • All the applications must be submitted before the 14th of April.
  • While for some activities it is crystal clear those had to close down business, such as restaurants, bars, teaching academies, most of the shops and hair salons, there are some others that it is not so clear such as of retail business doing home delivery and internet sales. Consequently, is not so straightforward to apply for the benefit, such as happened to Burger King who were forced to close but cannot apply for an ERTE, as they still do home deliveries.
  • Those not clear, according to the Royal Decree, would have to wait until the 1st of April and even though you might not be trading or haave your business closed, you will need to prove your sales were reduced by more than 75%, compared to the average of the sales made over the last 6 months.
  • This unemployment benefit will be sorted out and paid out by your “Mutua”. They are the insurance companies that collaborate with the Spanish Social Security system, duly authorised by the Spanish Ministry of Employment and Social Security and registered with the Special Register operated by said Ministry. Their aim is to collaborate with the management of the Spanish Social Security system under its direction and auspices with members jointly assuming liability for the situations and with the scope established by the law.

In principle, we are expected to provide at least a financial report and the accounts for your business, to show how your business has decreased and income reduced. But we will need to wait for your “Mutua” to confirm what paperwork is required.

Important things you need to know about your autonomo payment:

  • We must also take this opportunity to stress the importance of continuing to pay your autonomo fee at this stage. Whilst we appreciate this will be incredibly difficult, it is paramount to ensuring you don´t lose your right to make a claim and receive the benefits retrospectively, of which you are entitled.
  • The Social Security will debit your bank account and take the autonomo payment from your bank account at the evening on the 30th of March. Please make sure you have enough funds to attend the payment.
  • The autonomo payment will be automatically refunded by the Social Security as soon as they recognise you are entitled to receive an unemployment benefit and any future payments will be suspended from then on.

Please contact us immediately if you are not working and need us to help you obtain an unemployment benefit. We will inform you accordingly with the steps you need to take, as well as of the costs for the process on the application, to your specific case.

For more information please feel free to contact Corral&Alcaraz.

At Corral&Alcaraz Law Firm we will be more than pleased to assist you.

CORRAL&ALCARAZ LAW FIRM

LAWYERS, BARRISTERS & ACCOUNTANTS

+34 968 078 754

info@corralalcaraz.com

Kimberley LinetteUpdate II COVID19
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Royal Decree COVID19

This post is to clarify the recent measures the Government has taken on businesses and autonomos, affected by the recent Royal Decree, due to the Coronavirus. I hope you find this information relevant and useful to help you understand how to proceed in such a hard environment.

  • TAX ON BUSINESS AND AUTONOMOS
  • UNEMPLOYMENT BENEFIT AS A CONSEQUENCE OF CLOSING BUSINESS OR SEVERE DECREASE IN YOUR SALES
  • TEMPORARY EMPLOYMENT REGULATION (ERTE)

 

TAX ON BUSINESS AND AUTONOMOS

  • SPECIAL SCHEME TO DELAY PAYMENT OF TAXES

From the date the Royal Decree was published up to the 30th of May: business and autonomos will have the right to delay tax payments up to €30,000 for a 6 month period, having 3 months interests free.

This will be applicable to withholding tax on income tax, IVA and payments on corporate tax. The forms are:

  • Form 303 IVA
  • Form 202 Corporate Tax
  • Form 130 and 131 Income Tax
  • Forms 111, 115 and 123 Withholding Tax

From the 16th March:

  • The Tax Office will be closed to the public
  • Deadlines to appeal any tax will be suspended till the end of the quarantine

 

UNEMPLOYMENT BENEFIT AS A CONSEQUENCE OF CLOSING BUSINESS OR SEVERE DECREASE ON YOUR SALES

  • There will be an employment benefit for those business and autonomos who were forced to close their business, according to the article 10 of the Royal Decree 463/2020
    • This benefit will be 70% of the autonomo contribution which is an approximate figure of €700.
    • This will be payable for one month only. However, this will be extended if the quarantine last for more than one month.
  • This will be also be applicable for those who can see their sales reduced for more than 75% compared to the average of the sales made over the last previous 6 months

 

TEMPORARY REDUNDANCY SCHEMES (ERTE)

ERTE is a procedure to regulate the work contracts on an extraordinary health crisis such as the one we are experiencing.

Basically, it is a suspension of contracts but of a temporary nature or it can even mean a reduction in working hours.

This applies:

  • To companies or autonomos who had to close their business, as a consequence of the coronavirus.
  • For those who can see their sales reduced for more than 75% compared to the average of the sales made over the last previous 6 months

An ERTE means:

  • Your business could apply for either:
    • Work contracts to be suspended
    • Reduce the number of hours to work for your staff
  • The business or autonomo no longer will have to pay for social security contributions on their staff or employees.
  • The employees will have the right to receive an unemployment benefit regardless of the time they have been working in the past.
  • Important: Business or autonomos who decides to apply for an ERTE will be obligated to keep the employees for at least 6 months after the quarantine periods expires and they get back to work

 

MORTGAGES

  • For those who had lost their jobs, as a consequence of the coronavirus and had severe decrease on their sales (more than 40%), will have the right to apply on a suspension for their mortgage repayments. This will be applicable only on a main residence mortgage.

 

Also some measures to help tourist business affected by the virus.

There will be public loans for business and autonomos affected by restrictions on free movement of people and the cut off of tourist services demand, bookings cancellation, etc…

The Goverment will guarantee the loans, to be applied with the Banks and other financial instituions, to help business and autónomos obtain the necessary cash flow to keep their businesses going. For more information you will need to contact your local bank.

For more information please feel free to contact Corral&Alcaraz.

CORRAL&ALCARAZ LAW FIRM

LAWYERS, BARRISTERS & ACCOUNTANTS

mailto:info@corralalcaraz.com

+34 968 078 754

Kimberley LinetteRoyal Decree COVID19
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HAVE YOU LOST THE DEPOSIT YOU PUT DOWN ON A PROPERTY YOU PURCHASED OFF PLAN?

Buyers who purchased a property off plan in spain and lost money when the developers went bust may now qualify for a refund

You had always dreamed of owning a place in the sun. It almost became a reality. That trip will always be one to remember. You fell in love with the little fishing village on the coast and the development being built on the cliff was what your dreams were made of. The views would be spectacular. You didn´t take much convincing. You had a lump sum to invest and you didn´t hold back – that was what it was there for after all. The family all agreed – what could be better than to invest in one´s dreams? Until it all went wrong…the dream shattered by the development company going bust during the recession. Your deposit all but lost…or so you thought…

In 2015 the Spanish Supreme Court ruled that banks must refund the deposits placed by investors on off plan properties where the developer went out of business.

If you think you are entitled to a refund, contact Corral & Alcaraz. You will need to take the majority of banks to court in order to recover your deposit.

corralalcarazHAVE YOU LOST THE DEPOSIT YOU PUT DOWN ON A PROPERTY YOU PURCHASED OFF PLAN?
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It’s time for UK taxpayers to declare offshore assets and income!

UK TAXPAYERS COULD FACE PENALTIES IF THEY FAIL TO DISCLOSE UNDECLARED OFFSHORE TAX LIABILITIES BEFORE NEW LEGISLATION COMES INTO FORCE ON 30 SEPTEMBER 2018

On 30 September 2018 new legislation called ‘Requirement to Correct’ (RTC) comes into force. It requires UK taxpayers to notify HM Revenue and Customs (HMRC) about any offshore tax liabilities relating to UK income tax, capital gains tax or inheritance tax. Tax penalties will be significantly higher for those who do not declare offshore liabilities before 30 September 2018.

myriadIt’s time for UK taxpayers to declare offshore assets and income!
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The convenience of the new European Will

The convenience of the new European Will – Until the entry into force of the Regulation 650/2012, the law ruling cross-border successions was the one contained in the article 9.8 of the Spanish Civil Code.

This article records a personal conception on succession rights, being applicable the national law of the deceased which, at some points like inheritance of real properties, entered into a positive conflict with the law of the State in which the real estate is located. According to this, an English national who owns a property in Spain and deceases in Spain would have his property applied the Spanish succession law, whilst the English succession law would be applied to the rest of his assets.

corralalcarazThe convenience of the new European Will
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DO YOU OWN PROPERTY IN SPAIN AND HAVE RECEIVED THE LETTER FROM THE TAX OFFICE?

DO YOU OWN PROPERTY IN SPAIN AND HAVE RECEIVED THE LETTER FROM THE TAX OFFICE?

The Tax Office has sent a massive campaign to alert foreign property owners in Spain. You are very likely to have received this letter if you own a holiday home in Spain.

They question your fiscal status and ask you to report and prove either way you are non resident or fiscal resident in Spain in the years 2010 and/or 2011. You will have different liabilities depending on your fiscal status weather you are fiscal resident or non resident in Spain.

corralalcarazDO YOU OWN PROPERTY IN SPAIN AND HAVE RECEIVED THE LETTER FROM THE TAX OFFICE?
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CAPITAL GAINS TAX ON THE SALE OF PROPERTIES

CAPITAL GAINS TAX ON THE SALE OF PROPERTIES ACQUIRED BEFORE 31ST DECEMBER 1994

One of the key measures introduced by the new tax law of 28th November, Law 28/2014, which is effective from this year 2015 is the abolishment of the coefficient which reduces capital gains tax when selling estate property based on how long the property has been owned. This could allow us to increase the purchase value of our property and consequently reduce our tax bill when selling, for those properties acquired before 31st December 1994.

corralalcarazCAPITAL GAINS TAX ON THE SALE OF PROPERTIES
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LATEST CHANGES IN NON RESIDENT TAX 2015

LATEST CHANGES IN NON RESIDENT TAX 2015

The new tax law which is effective from 2015 was published in the Official Spanish Gazette (BOE) on 28th November, Law 28/2014. This law contains the latest changes affecting non residents taxation.

Non Residents who own property in Spain need to complete and submit a Non Resident Tax income form.

For owners not obtaining a rental income, the tax rate has been reduced from 24.75% to 20% for people living in the EU zone, Iceland and Norway. (24% for non EU members). This tax rate will be further reduced to 19% in 2016.

corralalcarazLATEST CHANGES IN NON RESIDENT TAX 2015
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ASSETS DECLARATION 2015

ASSETS DECLARATION 2015

The tax form 720 must be completed, the same as last year, by all tax residents in Spain with a deadline of 31st March 2015, reporting assets held as of the 31.12.2014 with a value of more than 50,000 Euros.

  1. Accounts in foreign banks: Balance at 31st December 2014 and average balance in the last quarter.
  2. Properties and property rights owned in any other country.
  3. Shares, rights, life insurances and incomes deposited, handled or obtained abroad.

Tax evaders will incur a penalty of 5K for every asset not declared after the deadline with a minimum penalty of 10,000. In addition, non-declared assets might be considered by the Tax Office as capital gains and could incur an additional penalty up to 150% over the total taxable amount.

For more information please feel free to contact Corral&Alcaraz Law Firm. Please seek expert advice as it is not worth the risk.

 

corralalcarazASSETS DECLARATION 2015
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NEW DOUBLE TAXATION AGREEMENT UK-SPAIN

NEW DOUBLE TAXATION AGREEMENT UK-SPAIN

The new treaty signed between the Kingdom of Spain and The United Kingdom of Great Britain and Northern Ireland, published in the Official Gazette (BOE) on 15th May 2014, is also a key issue for expats. This replaces the old 1976 Double Tax Agreement.

The new treaty is especially relevant to expat pensioners who are in receipt of civil service pensions from public sector occupations i.e. civil servants, military personnel, fire service, police service and local authority employees who were previously exempt from Spanish tax.

corralalcarazNEW DOUBLE TAXATION AGREEMENT UK-SPAIN
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