Tax equality for non-EU taxpayers: deduction of ex […] Tax equality for non-EU taxpayers: deduction of expenses in the non-resident income tax (IRNR) on Spanish rental income
Category: Blog
Non-EU taxpayers who earn income from renting property in Spain have been at a disadvantage for years compared to EU residents. While the latter could deduct expenses related to the lease—such as mortgage interest, property tax, or repairs—non-EU residents were required to pay tax on gross income under the Non-Resident Income Tax (IRNR). This situation […]
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Cryptocurrencies and transfer tax (ITP): a new fro […] Cryptocurrencies and transfer tax (ITP): a new front in Spanish taxation
The interpretation of the Directorate-General for Taxation (DGT) Cryptocurrencies and ITP have become a central debate in the Spanish tax system. The expansion of crypto-assets has tested the limits of tax and legal frameworks. In Spain, the DGT — according to binding consultation V0935-25 — is consolidating an interpretation that directly affects the use of […]
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New corporate tax rates: key aspects every company […] New corporate tax rates: key aspects every company should know from 2025
Legal framework of corporate tax rates Law 27/2014 of 27 November on Corporate Income Tax (LIS) has introduced a major reform of corporate taxation in Spain. One of the central elements of this reform is found in Article 29, which regulates the tax rates applicable to taxpayers. In addition, Transitional Provision 44 establishes a temporary […]
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New extension of parental leave: from 16 to 19 wee […] New extension of parental leave: from 16 to 19 weeks, with specific rules for single-parent families
At the end of July, Royal Decree-law 9/2025 entered into force, amending sections 4 and 5 of Article 48 of the Workers’ Statute. With this reform, parental leave increases from 16 to 19 paid weeks per parent, and in the case of single-parent families, the leave extends up to 32 weeks. This measure adds three […]
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Transparency reaches limited liability companies: […] Transparency reaches limited liability companies: key changes in share ownership
On 9 July 2025, the National Anti-Corruption Plan was made public, a project which, if fully implemented, will have a major impact on Spanish corporate law. Among its different components, Component 9.4 stands out, proposing that the ownership of shares in Limited Liability Companies (Sociedades de Responsabilidad Limitada, S.L.) – the most common corporate form […]
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M&A transactions in family businesses: distin […] M&A transactions in family businesses: distinctive keys
The prominence of family businesses in the mergers and acquisitions (M&A) market is a well-established reality in Spain. In 2023, around 43% of M&A transactions recorded in the country directly involved family-owned companies — a figure that not only reflects the importance of this type of enterprise but also demonstrates a growing trend that appears […]
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Retroactive application of R&D tax deductions […] Retroactive application of R&D tax deductions: new TEAC ruling
Change of DGT approach: situation before the new TEAC ruling In the field of R&D tax credits under Corporate Income Tax (CIT), the retroactive application of R&D tax deductions has been the subject of intense legal debate in recent years due to a change of position by the Directorate-General for Taxation (DGT), which directly affected […]
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Sexual harassment at work: corporate civil liabili […] Sexual harassment at work: corporate civil liability and internal prevention
What is sexual harassment at work under the Criminal Code? Article 184 of the Spanish Criminal Code provides that anyone who solicits sexual favours, for themselves or for a third party, within the framework of an employment relationship and thereby creates for the victim an objectively and seriously intimidating, hostile or humiliating situation, shall be […]
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The importance of specialist advice in facing empl […] The importance of specialist advice in facing employment law challenges from September
After the summer, it is often a particularly opportune time for businesses to strengthen their internal analysis, carefully review their current situation, take a rigorous balance of progress made throughout the year, and prepare in advance to successfully address the employment challenges that arise both in the final quarter and in the following financial year. […]
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The importance of non-compete clauses in business […] The importance of non-compete clauses in business transfers
In the context of business acquisitions, non-compete clauses are an essential covenant to protect the purchaser. These agreements stipulate that the seller will refrain, for a defined period and within a specified territory, from engaging in activities that compete with the transferred business. Their primary purpose is to prevent the seller, after completion of the […]
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The capitalisation reserve deduction under Corpora […] The capitalisation reserve deduction under Corporate Income Tax: updates, practical challenges, and recommendations
What is the capitalisation reserve deduction in Corporate Income Tax? The capitalisation reserve deduction is a tax incentive that allows Corporate Income Tax (CIT) payers to reduce their taxable base by a percentage of the increase in their equity, provided that two main conditions are met: This incentive is regulated under Article 25 of Law […]
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How to respond to a data breach in your SME effect […] How to respond to a data breach in your SME effectively and securely
A data breach is one of the main reasons for sanctions imposed by the Spanish Data Protection Agency (AEPD). According to the AEPD’s 2024 Annual Report (published in May 2025), the agency opened 30 sanctioning or warning proceedings related to data breaches last year, with total fines amounting to €13.18 million—37% of all sanctions imposed. […]
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Organic Law 2/2024: Spain takes a major step again […] Organic Law 2/2024: Spain takes a major step against the glass ceiling
On 22 August 2024, Organic Law 2/2024 of 2 August, also known as the Parity Law, came into force. This legislation marks a turning point in gender equality in leadership roles, both in the public and private sectors. The law transposes into Spanish law Directive (EU) 2022/2381 on improving gender balance on the boards of […]
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Can the Spanish tax authority search your home for […] Can the Spanish tax authority search your home for artworks? What you need to know
Inviolability of the home and legal requirements for inspections targeting artworks Is it possible for the Spanish Tax Agency (Agencia Tributaria), together with Customs Surveillance (Vigilancia Aduanera), to visit your home in search of information regarding artworks? It can happen—but only under certain conditions. The inviolability of the home is protected under Article 18.2 of […]
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What is an escrow agreement in an M&A transac […] What is an escrow agreement in an M&A transaction? Definition, mechanism, and advantages
In this article, we analyse the key aspects of escrow agreements. In any company acquisition process, one of the main concerns for both buyers and sellers is ensuring that the terms agreed in the sale and purchase agreement (SPA) are properly fulfilled. To this end, mechanisms that safeguard those obligations and minimise risk for both […]
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Key employment issues for companies in the hotel s […] Key employment issues for companies in the hotel sector
The hotel sector is one of the main economic drivers in Spain and is expected to continue growing significantly due to the expansion and strengthening of the tourism industry. However, this sector has traditionally been one of the most contentious from a labour and legal perspective, presenting major challenges for hotel companies and their HR […]
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Exit tax for companies: tax implications of intern […] Exit tax for companies: tax implications of international relocations of residence or assets
In an increasingly globalised environment, it is common for companies to structure their corporate groups to optimise tax, operational, regulatory, and commercial efficiency. Within this context, we are seeing a growing number of cases where companies relocate their tax residence or transfer significant assets to more favourable tax jurisdictions, or for purely strategic reasons. However, […]
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Internal labour audit: identify risks before inspe […] Internal labour audit: identify risks before inspection and increase your company’s value
In a climate of increased regulatory pressure and a growing number of corporate transactions, the internal labour audit has become an essential tool for middle-market companies. It’s not just about avoiding fines—it’s about safeguarding business value, improving processes, and strengthening the confidence of investors or potential buyers. What is an internal labour audit? It is […]
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The foundation: definition, establishment, and adv […] The foundation: definition, establishment, and advantages
In our legal system, non-profit entities play a key role in various spheres such as culture, social welfare, and politics. These entities have legal personality and are classified into non-profit associations and foundations. Our partner in the Corporate Law Department, Juan Antonio Botella, previously published an article on foundations in the field of art. Accordingly, […]
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Collective redundancies prior to a business transf […] Collective redundancies prior to a business transfer: key takeaways from the Supreme Court Judgment of 5 March 2025
In scenarios such as the termination of a service contract or administrative concession, it is not uncommon for the outgoing company to consider terminating its workforce contracts just before the transfer of activity, invoking collective redundancy on the grounds of an alleged cessation of operations. At first glance, this might appear to be an efficient […]
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Artificial Intelligence in the legal M&A sect […] Artificial Intelligence in the legal M&A sector
The emergence of artificial intelligence (AI) is transforming legal practice across numerous sectors, and the field of mergers and acquisitions (M&A) is no exception. This technology has not only introduced new tools to automate repetitive tasks and analyse vast amounts of data, but it is also reshaping the way lawyers and advisers structure, negotiate, and […]
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Finance leasing, commonly known as leasing, has become a strategic financial tool for businesses looking to acquire capital goods without compromising their liquidity. This instrument not only facilitates financing but also offers significant tax benefits—particularly in the real estate sector. What is a Finance Lease? A finance lease is a contractual arrangement whereby a financial […]
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Risk Mitigation in M&A: W&I, Insurance a […] Risk Mitigation in M&A: W&I, Insurance and Earn-Out Clauses
M&A transactions entail a range of legal, financial, and operational risks that can jeopardise their success if not properly managed. In this context, risk mitigation becomes critically important, particularly for the buyer, who typically assumes the greater exposure after completion. Among the most widely used mechanisms in practice are Warranty & Indemnity (W&I) insurance and […]
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Extension of the 2025 Accounting Moratorium: legal […] Extension of the 2025 Accounting Moratorium: legal implications for commercial companies
The recent approval of Royal Decree-Law 4/2025 of 8 April introduces a new extension to the accounting moratorium concerning the legal regime of dissolution due to losses in commercial companies. This measure, effective until 31 December 2025, once again suspends the inclusion of losses incurred during the 2020 and 2021 financial years for the purposes […]
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Limitations on the use of tax loss carryforwards f […] Limitations on the use of tax loss carryforwards following a corporate acquisition
One of the tools available to companies for optimising their tax burden is the use of tax loss carryforwards. However, this mechanism cannot always be applied. Article 26.4 of Law 27/2014 of 27 November on Corporation Tax (hereinafter, the “CIT Law”) sets out a series of restrictions that prevent the utilisation of tax loss carryforwards […]
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Foundations: a tool for the promotion, investment […] Foundations: a tool for the promotion, investment and protection of art
Foundations have become a well-established legal vehicle within the art and culture ecosystem, aimed at the preservation, promotion and dissemination of artistic heritage. At Devesa, we created a dedicated Art Law practice within our legal and tax advisory services to support collectors, families with artistic assets, investors and institutions in the creation, management and legal […]
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Five-day paid leave for hospitalisation of a famil […] Five-day paid leave for hospitalisation of a family member or cohabitant: key considerations for effective management
The management of 5 days’ paid leave due to hospitalisation or serious illness of a family member or partner has become a common source of doubts and incidents in the workplace. The increase in requests in recent months has led to a notable increase in labour disputes, especially after the recent National Court Ruling No. […]
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The solidarity tax on large fortunes and its inter […] The solidarity tax on large fortunes and its interaction with the wealth tax
We are currently in the key period for filing Spain’s 2024 Income Tax and Wealth Tax (Impuesto sobre el Patrimonio, or IP) returns, which are due by 30 June. Since the 2022 tax year, however, a new companion tax has joined the calendar: the Solidarity Tax on Large Fortunes (Impuesto de Solidaridad de las Grandes […]
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Criminal compliance in the hospitality industry Criminal compliance in the hospitality industry
What is criminal compliance in hospitality? Until relatively recently, criminal compliance was mainly associated with highly regulated sectors. However, companies across a growing range of industries are adopting compliance programmes as part of their social responsibility, good governance, and commitment to transparency. Criminal compliance in hospitality businesses — such as hotels and restaurants — involves […]
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Legal criteria for identifying the existence of a […] Legal criteria for identifying the existence of a business succession
A matter that we increasingly deal with at our firm involves providing legal advice on the criteria for identifying business succession and the resulting liability of the new company for outstanding debts left by its predecessor. What is business succession? Business succession is a legal concept regulated under Article 44 of the Spanish Workers’ Statute […]
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