When Does It Make Sense to Set Up a Holding Company in Spain? Advantages, Risks and Common Mistakes

Why your corporate structure is a strategic decision Your corporate structure is much more than a legal requirement. It provides the framework that supports your business as it grows, helping you manage risk, protect valuable assets and prepare for future opportunities. A well-designed structure can influence: Choosing the right structure from the outset can help […]

What Does It Mean to Be a Tax Resident in Spain? Tax residency determines the country in which an individual is required to pay taxes on their income and assets. As a general rule, a person may be considered a Spanish tax resident if they spend more than 183 days in Spain during a calendar […]

The Minimum Wage in Spain for 2026 has been approved with a 3.1% increase, setting the new amount at €1,221 per month in 14 payments, equivalent to €17.094 per year. The measure, effective retroactively from January 1, 2026, requires companies and self-employed individuals with employees to review payrolls, contracts, and salary structures. Retroactive Effects and Payroll […]

The Spanish Tax Directorate (DGT) has recently examined a particular but increasingly common scenario: a landlord renting out a commercial premises to be used by the tenant as their primary residence, without any underlying business purpose. This clarification is relevant for understanding the tax implications of such leases under both VAT and Personal Income Tax […]

Severance payments for objective dismissal may be exempt from personal income tax (IRPF), but only up to certain limits. In this article, we explain the tax exemption criteria and the tax implications if these limits are exceeded. What Does the Law Say About IRPF Exemption? According to Article 7(e) of the Spanish Income Tax Law […]

The binding tax ruling V0203-25 by the Spanish Directorate General for Taxation (Dirección General de Tributos, DGT) provides important clarity, particularly relevant to property rental companies facing generational or workforce changes involving family members. The determining factor for the exemption isn’t the Social Security registration system itself, but rather the existence of a genuine employment […]

If you are a tax resident in Spain and own assets or rights abroad, you may be required to submit Form 720 before March 31, 2025. Find out who must file, which assets need to be declared, and the possible penalties for non-compliance. Who Must File Form 720? The obligation applies to: What Assets and […]

Starting February 3, 2025, all companies will be required to report the identity of their beneficial owners to the Tax Agency through Modelo 036. This measure, established in Order HAC/1526/2024 and published in the BOE on January 9, 2025, aims to enhance tax transparency, prevent fraud, combat money laundering, and curb terrorist financing. Who Are […]

The year 2025 marks a significant step forward in labor rights, with new measures designed to facilitate work-life balance and provide greater protection to employees in exceptional situations. These initiatives reflect a renewed commitment to flexibility and workplace well-being, offering solutions that align with employees’ current needs while supporting them during critical moments. Need advice? […]

The Government has announced 12 new measures aimed at providing citizens with more housing, better regulation and greater support. Access to housing, which affects millions of people, is the focus of the Government’s new package of measures. During the forum “Housing, the Fifth Pillar of the Welfare State,” Pedro Sánchez presented 12 initiatives based on […]

As of today, Article 10 of Royal Decree-Law 8/2019, which amended Article 34 of the Workers’ Statute, establishes the following: “The company shall ensure the daily recording of the workday, which must include the specific start and end times of each employee’s workday. The company shall retain the records referred to in this provision for […]

The Directorate General of Taxes (DGT) has resolved a consultation in which it analyzes whether the transfer of these vehicles to employees, at no cost to them, implies a self-consumption of services subject to VAT. We want to clarify a common question that has been raised about the free provision of vehicles to employees and […]

We remind you that you have the opportunity to modify the contribution base of the Special Regime for Self-Employed Workers (RETA) and the corresponding fee, adjusting it to your actual income within the permissible limits according to age, until August 31, 2024. This modification will take effect from September 1, 2024. If you don’t do […]

When your company receives an advance payment for a future transaction, you must issue an invoice detailing the principal and VAT, and pay the tax in the self-assessment corresponding to the collection date. Later, when the sale is made or the service is provided, you must issue an invoice for the remaining amount and VAT. […]

Are you up to date with the obligations of your company with more than 50 employees? Do you have employees under your responsibility? In this post, we briefly explain the responsibilities you have: 1. Disability employment quota Did you know that it is mandatory for companies with more than 50 employees to hire at least 2% […]

These are a type of pension plan promoted by companies for their employees as an incentive and at the same time, it’s a good way to complement the public retirement benefit. Likewise, it’s one of the most valued social benefits by employees. Do you know their tax advantages? Do you know that you can be […]

Introduction The Income Tax and Wealth Tax campaign for the year 2023 started on April 3rd and will end on July 1st. The personal income tax is one of the main taxes in terms of revenue collection by the Tax Agency, which all individuals who are tax residents in Spain are obliged to declare. They […]

Context Moving to Spanish territory for a period of more than 183 days implies that you can be considered as a tax resident in Spain. The consequence is to begin paying personal income tax in Spain based on the global income criterion at a progressive tax rate of up to 50% (that is, income is […]

Do you know about Model 720? The Model 720 is an informative declaration where basically assets and rights located abroad are declared by both individuals and legal entities. As it is an informative declaration, being required to submit it does not entail any financial outlay. It only serves to report on the economic content of […]

Today we’ll talk about address the fixed-term contract in the context of substitution due to pregnancy risk and the associated leaves for childbirth (maternity and paternity). In the following post provided by Global Mind Advisors, we will clarify some issues concisely: When a person has their contract suspended due to parental leave or pregnancy risk, […]