Tax residence: dual residence conflicts Tax residence: dual residence conflicts
Category: Blog
Spain is an increasingly attractive country, whether for strategic or commercial considerations or, directly, for the quality of life it offers, which in turn attracts the establishment and location of foreign individuals with large estates, both within and outside our territory. However, often, due to a lack of knowledge of the applicable regulations, significant risks […]
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Taxation of leasing of housing for employee use Taxation of leasing of housing for employee use
Nowadays it is quite common for companies not only to pay monetary remuneration for the work of their employees, but also to pay for these services by offering their employees payments in kind, some of the most common being: the assignment of the use of a house or a vehicle, the contracting of medical insurance, […]
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Is it possible to revoke the voluntary appointment […] Is it possible to revoke the voluntary appointment of an auditor?
What is a statutory auditor Statutory auditors are professionals who are responsible for reviewing and verifying the annual accounts, and other financial statements or accounting documents, prepared by companies and other institutions in accordance with the regulatory framework. Their ultimate purpose is to issue a report indicating whether the annual accounts are true and fair […]
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Can a company deduct tax paid abroad from its Corp […] Can a company deduct tax paid abroad from its Corporation Tax?
In the context of a globalised economic system in which commercial relations between companies from different countries are a fact of life, the question arises as to how this will affect their taxation. Specifically, if a company incorporated in Spain supplies goods or services to companies not established in Spain for which it obtains income […]
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The Equity Line as a formula for financing listed […] The Equity Line as a formula for financing listed companies
Nowadays, many companies need financing to realise their projects or to accelerate their growth and, to do so, they turn to alternative financing, which is a departure from traditional bank financing, under which companies incur debt to banks that provide the necessary funds to meet such business challenges. In this article, we look at the […]
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The Board of Directors’ Regulations: what ar […] The Board of Directors’ Regulations: what are they and when are they mandatory?
Within the Spanish legal system, legal entities are regulated and governed by two main bodies; (i) the General Meeting and; (ii) the Administrative Body, the latter being in charge of the management and representation of the Company. Thus, Royal Legislative Decree 1/2010, of 2 July, which approves the revised text of the Corporate Enterprises Act […]
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Property leasing: alternatives and tax implication […] Property leasing: alternatives and tax implications
With the entry into force on 26 May 2023 of Law 12/2023, of 24 May, on the right to housing, and as we commented in our blog just before its approval, the rental housing market is in one of its most convulsive moments, which may put the activity of landlords at risk due to excessive […]
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Legitimisation to challenge corporate resolutions […] Legitimisation to challenge corporate resolutions in court
Article 206 of the Caorporate Enterprises Act regulates the standing to challenge corporate resolutions adopted by the General Meeting of a commercial company. Percentage of share capital required to challenge company resolutions In principle, any of the directors, third parties with a legitimate interest and shareholders who have acquired such status prior to the adoption […]
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What obligations will companies have to comply wit […] What obligations will companies have to comply with the reduction of working hours to 37.5 hours per week?
The reduction of the maximum working week of 40 hours per week in annual calculation, which is currently included in article 34 of the Workers’ Statute, is one of the commitments included in the government pact signed at the time between PSOE and SUMAR, which established a reduction of the maximum working week to 37.5 […]
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How has the new Housing Law affected the eviction […] How has the new Housing Law affected the eviction procedure for large tenants?
Law 12/2023 of 24 May on the right to housing, which entered into force on 26 May 2023, established a series of measures to protect the constitutional right to housing, which materialised in the amendment of article 439.6 of the Civil Procedure Law, through the addition of paragraphs 6 and 7. These regulate the admission […]
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Exemptions for family businesses: I have a company […] Exemptions for family businesses: I have a company that leases real estate, what are the consequences for wealth tax?
As we mentioned in a previous post, the value of the shares held must be declared in the Wealth Tax (IP). As a reminder, in that article we also commented on the so-called “family business exemption”, which is established in article 4-Eight-Two of Law 19/1991, of 6 June (LIP). In this new article, we analyse […]
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Does your company carry out appropriate national I […] Does your company carry out appropriate national ID card processing?
It is common for companies to ask their customers to show their ID card or passport and even to scan it or request it to be sent by email in order to carry out the identification of a natural person. However, in doing so, companies may be in breach of the data minimisation principle contained […]
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Does the employee have to give notice of absence d […] Does the employee have to give notice of absence due to medical leave?
Although it is no longer compulsory for employees to provide the company with the sick leave, confirmation and discharge report, it is possible to require them to notify the company of their absence due to Temporary Incapacity. In this article, we analyse the conditions that the company may require employees to fulfil in relation to […]
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Valid economic rationale and concept of ‘tax advan […] Valid economic rationale and concept of ‘tax advantage’ in corporate restructurings. TEAC Rulings 6448/2022 and 6452/202 […]
Corporate restructurings are a practice widely used by business groups for various reasons, among others, because all economic activity must be structured in an efficient, orderly manner and with properly managed resources in order to correctly analyse the profitability of each line of business, as well as to enhance such profitability, without any of them […]
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The deductibility of impairment losses on trade re […] The deductibility of impairment losses on trade receivables for Corporation Tax purposes and the modification of the tax […]
Loan defaults are a reality that many companies face in their day-to-day business activities. It is therefore important for taxpayers to be clear about their correct tax treatment in order to comply with their tax obligations in accordance with the regulations in force at any given time. In this publication we address the tax treatment […]
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How and why should I register my trademark? How and why should I register my trademark?
In a globalised and highly competitive world, intangible assets have become one of the most valuable elements of companies, as they not only reflect the economic figures of the business, but also represent the corporate identity, the perception of clients and the reputation of the company. The annual report prepared by Interbrand in 2023, in […]
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About takeover bids: What are they and how do they […] About takeover bids: What are they and how do they work?
Takeover bids in Spain represent a crucial mechanism within the legal and financial framework for the acquisition of shares of listed companies in the Spanish market. What is a takeover bid? A takeover bid is a transaction whereby all the shareholders of a listed company are offered to acquire its shares or any securities that […]
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How does the distribution of dividends affect a co […] How does the distribution of dividends affect a company when its partner is not a tax resident in Spain?
There are many cases in which a company established in Spain distributes dividends to its partner who is not a tax resident in Spain. In this type of case, both Spanish companies and non-resident partners encounter difficulties in determining the taxation of this income. This is due to the fact that not only are Spanish […]
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The international joint venture agreement as a for […] The international joint venture agreement as a formula to internationalise a business
Many clients come to law firms to tell us that they intend to manufacture their products abroad or to internationalise their business by selling their products or services in other markets they do not yet reach. On many occasions, moreover, clients tell us that they want (or need) to internationalise their activity with a local […]
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How can I protect my clients, suppliers and employ […] How can I protect my clients, suppliers and employees in cooperation agreements with third parties?
Entering into partnerships with third parties outside our company is key to business growth, enabling companies to leverage synergies, expand market reach and improve operational efficiency. However, in most cases, these agreements involve third parties having access to sensitive data about our organisation, such as our network of clients, suppliers or employees. Therefore, in addition […]
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Personal income tax exemption for work carried out […] Personal income tax exemption for work carried out abroad
In the process of internationalisation and globalisation in which the business world is currently involved, it is increasingly common for company employees and managers to be sent temporarily from Spain to work abroad to carry out work of different levels of qualification, either for end clients or, on many occasions, for subsidiaries of the group in the […]
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Reform of the Civil Proceedings Law Royal Decree-Law 6/2023 of 19 December, approving urgent measures for the implementation of the Recovery, Transformation and Resilience Plan in the areas of public service of justice, civil service, local government and patronage, has thoroughly reformed the Civil Procedure Act. How to notify a civil judicial procedure to a […]
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Case of disciplinary dismissal for failure to comp […] Case of disciplinary dismissal for failure to comply with the duty to record working hours and other obligations
With effect from 21 March 2023, a company dedicated to the marketing of medical products dismissed one of its sales representatives for repeated disobedience and fraud, disloyalty or breach of trust in the tasks entrusted to her by failing to comply with the duty to record her daily working hours, having been requested on numerous […]
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The application for an arrangement with creditors […] The application for an arrangement with creditors of a company at the request of one of its creditors
Insolvency law provides for the possibility for a creditor to request the declaration of insolvency (insolvency proceedings) of a company against which it has an unsatisfied claim. It should be specified that a creditor who, within the six months prior to the lodging of the application, has acquired the claim by inter vivos acts and […]
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Collective labour measures in bankruptcy proceedin […] Collective labour measures in bankruptcy proceedings
Although it is always advisable to adopt labour-related measures before the company has been forced to initiate a bankruptcy proceeding, as this could be avoided by adjusting certain aspects linked to the employment contracts of the people who form part of the workforce, the truth is that on certain occasions this is not possible. However, […]
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Usufruct of shares: rights of the bare owner and t […] Usufruct of shares: rights of the bare owner and the usufructuary
In the corporate life of public limited companies, we often encounter the existence of a real right of usufruct over certain shares. This is usually, but not always, preceded by inheritance processes within family companies. When there is a usufruct of shares, two profiles come into play: the bare owner and the usufructuary. In this […]
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What is a business code of ethics and why is it im […] What is a business code of ethics and why is it important?
At the heart of the fabric of any company, large or small, is a set of core values that guide its behaviour and decision-making. These values not only define the company’s identity, but also shape its relationship with clients, employees, partners and society at large. One of the most solid pillars underpinning these values is […]
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Do I have to declare my shares in a company for we […] Do I have to declare my shares in a company for wealth tax purposes?
As is well known, the voluntary period for filing Personal Income Tax (hereinafter, “IRPF”) and Wealth Tax (hereinafter, “IP”) for the 2023 tax year opened on 3 April. This voluntary filing period will end on 1 July. In this blog post, we are going to focus exclusively on the IP and, specifically, on the obligation […]
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What can be contributed to the capital of a commer […] What can be contributed to the capital of a commercial company in addition to money?
It is not uncommon for those who are considering setting up a company or increasing its share capital to have doubts about what can be contributed to the share capital of a company, apart from money (and enthusiasm). In technical terms, the question here is what can be considered legally valid as a non-monetary contribution, […]
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Who is entitled to attend a General Meeting? Who is entitled to attend a General Meeting?
The Shareholders General Meeting is the sovereign body of trading companies, and its powers include such important competences as the approval of the company’s annual accounts and the appointment and removal of its directors. Regulation of the entitlement to attend a Shareholders General Meeting by the Corporate Enterprises Act The Corporate Enterprises Act regulates the right of […]
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