Taxes and obligations to comply with the Treasury in Spain
As for the quarterly taxes paid by companies, Duarte comments that there are three ratios in the VAT: 4% is the super reduced one which is for first need products; then there is the reduced tax rate of 10% for food not included in the previous one, the sale of first construction housing and others, and finally 21% which is the most general VAT; VAT returns are presented quarterly although there are large companies that present these returns monthly.
In the case of a limited company, it has the obligation to present the corporation tax in Spain annually, six months and 25 days after the conclusion of the tax period, normally it happens before July 25th of the following year to declare income, expenses, benefits, losses; and the tax rate is usually in general terms at 25 per cent.
«Advance payments of corporate tax are also made once profits are earned, they are required to make instalment payments in the subsequent tax year… three payments a year are due the first 20 days of April, October and December. If profits have been obtained in July, which is when the tax is filed, it is normally 18% of the taxable base but it will depend on the modality chosen», says Duarte.
Then there are the annual returns. We must highlight the famous model 347, the expert accounting advisor in Marbella Welex, indicates that this is a fairly important requirement that should not be left unattended.
«In our experience, it has not been taken seriously enough, but it is very important that it is handled correctly, it’s an informative declaration is not a tax payment; it is an informative declaration in which the Treasury has a great deal of influence because it is a model that is presented by the company, its suppliers and clients; what the Treasury does is compare the client’s declaration with that of the suppliers and vice versa… everything must fit and in the event of any discrepancy, the Treasury knocks on the door, so special care must be taken with this model», points out Duarte.
Welex, your multilingual lawyer and economist in Marbella, normally checks these amounts for its clients, not just the accounts because then there are missing invoices that the clients have not sent: what this outstanding specialist consultancy firm does is check with its network of clients and suppliers that all the invoices they are declaring are the same figures from their clients.
Another tax to be taken into account is the wealth tax, Duarte states that both tax residents and non-residents present it and for non-residents all their wealth in Spain must be declared: properties, bank accounts… all their assets in Spain… and if this exceeds 700,000 euros they will be obliged to present the wealth declaration.
In the case of residents, it includes all the assets they have worldwide, the tax rate depends on what each autonomy has absolutely regulated; Malaga and Marbella depend on the Junta de Andalucía and this marks a scale from 0% to 3.03% from 700,000 euros.
Then there is the accounting closure, once a year is finished Welex proceeds to close the accounts which implies one of the most arduous tasks but that the professional team of first quality of Welex handles perfectly.
And they do it under a clean and meticulous responsibility; the consultancy from Marbella has a control sheet in which it reviews that the accounting of each company is correct.
So it verifies that all taxes are presented in time and form, checks that everything has been accounted for, that the declarations are correct: the taxes presented in time and form; the deductions made. Everything is verified so that there are no errors; the reconciliation offered by Welex is very professional and accurate.
«We want everything to be in order, it is important for us that our clients feel safe, protected and well advised; when everything is in order there is a way to avoid fines and not get into trouble with the Treasury», says Duarte.
Professional services are essential, especially when you are a foreigner seeking to reside in another country, but also for nationals seeking to carry out an economic activity.
Welex lawyers and economists in Marbella offer a comparative advantage by having legal, accounting, tax and economic advisory services in several languages not only in Spanish, but also in English, Dutch, French, Portuguese and German.
As the prestigious firm argues, in Spain it is important not to get into trouble with the Treasury, it is necessary to comply with all current regulations. In any case, it is better to be safe than sorry…
Do not hesitate to contact this law firm and economists in Marbella, the heart of the Costa del Sol Spain, for any consultation of tax, accounting, commercial and legal nature.