To commemorate MSI month, AUDALIA participated in an event last 30th of September in city center Leeds. MSI an international association of independent professional firms which is represented in more than 100 countries and with more than 250 members.
This event was in Armstrong Watson office and the British firm was holding a seminar presentation to raise awareness of MSI and more general international accounting matters. Successful international event that was attended by British clients, business partners and staff .All of them were good audience in conference time.
AUDALIA as an active international speaker member of MSI, touched three subjects, as follows:
I) Improvement of Spanish economy.
In Spain we have new opportunities at low prices and the economy starts to grow which, of course, results in many people investing opportunities in our country.
II) Latest developments of Spanish taxation for British corporations and individuals.
Specifically the most important changes established by the New Double Tax Treaty between UK and Spain. This new agreement came into force in June 2014. It replaces the older one, the 1976 Double Tax Agreement.
In time conference AUDALIA addressed four changes or modifications as follows:
1 ) Companies Holding Real Estate Assets.
A) British individuals owning shares of Companies holding more than 50% of assets in Spain.
Since June 2014, when New Double Tax Treaty came into force, Individuals which own shares from British Companies with more than 50% assets “located” in Spain ,are subjected to pay Wealth Tax in Spain, on a yearly basis.
B) Since June 2014, gains obtained from selling your British Company Shares which owns more than 50% of Real Estate assets in Spain, are subjected to taxation in Spain as Capital Gain Taxes.
C) Income obtained by British Companies owning more than 50% Real Estate in Spain is taxable in Spain. This income could be derived from mainly rents.
2) “Non- dom” and Remittance basis.
Non-Domiciled UK Residents are now taxed in Spain, when income is not remitted to UK.
3) Legal Recognition of British Trusts in Spain.
A British Individuals being Spanish resident, obtaining income from a British Trust is now subjected to taxation in Spain.
4) Absence of Withholding Tax on Royalties, Interest and some Dividends.
Since June 2014, in Spain the Withholding taxes are reduced to 0%, for Royalties and Interests.
Regarding dividends, Since June 2014, the Withholding taxes in Spain are reduced to 0% too, for qualifying companies, as you can see on the following table:
III) Spanish impatriate tax regime .
The Spanish impatriate tax regime enacted in 2004 also known as “Beckham Law”, created a flat rate system, where considering the meeting of certain conditions, an employee could apply a flat rate system being Spanish tax resident, and avoiding the general regime with progressive rates of up to 43%
The draft legislation published in the Spanish Congress official gazette on August 6th 2014, will fix some changes with better tax rates and more flexibility, starting on Jan 1st 2015
(*) Shareholders with a share capital under 25%
In closing this event was a suitably international conclusion to learn and to do more for needs of our clients.