Spanish tax warning 2012

First of all, as this is my first Spanish Insight of this New Year, I would like to wish all our readers a very happy new year 2012.

It is our wish to inform you about the main tax changes just released, as well as some changed taken place in our company.

1. Tax residents and non-residents of Spain:

a. The tax deduction rate applicable to rental income, capital gains and profits goes up from the 19% to the 21% for the next two years, this is, 2012 and 2013.
b. Also, increase on the IBI (local tax on real estates) is approved for these two years, it may go from 0% to 10%, depending on when the cadastral office revised and updated the values on which the tax is based.
c. The reduced rate of VAT (4%) on new properties will continue in 2012.

2. Non-residents:

a. The IRNR (Income tax on non-residents) is increased from 24% to 24,75%.
b. The Inland Revenue are posting letters to those who own a property in Spain but do not declare the IRNR, so they can regularize their situation urgently.

3. Residents:

a. The IRPF (income tax on individuals) for 2012 and 2013 will suffer a complementary, progressive increase of 0,75% to 7%, depending on the level of income, being the tax deductions at source recalculated from February.
b. The tax relief on the acquisition of the main home was reestablished since 1st January 2012.

In regards with our company, we have increased the number of persons employed along with our services, providing as well legal support and advice to companies, self-employed and individuals in different law areas, either resident or non-resident of Spain. We have a new web site ( and a Twitter account @AdolfoCamposACF where you can contact and follow us should you wish so.

Additional information