Preparing for 2014
26 Dec. 2013
2013 is coming to an end and 2014 is around the corner. It is the time to take the last decisions of the year and prepare for what is coming for next year.
Further to countless changes in Spanish legislation during the last 2 years, Spain is looking forward to a tax reform to be enforceable step by step in 2015 (electoral year), 2016 and even 2017. The experts committee will present their conclusions by next February and the Government will release the results at the end of March.
The first step will reduce Personal Income Tax but likely it will increase the VAT revenue extending the scope of goods and services subject to standard VAT rate of 21%.
“Delay if possible” would be the main suggestion. Personal Income Tax rate is at its highest level and short-term capital gains, from stocks held less than one year, are taxed according to the standard taxable base as of January 2013, which goes up to 56% in AndalucÃa and CataluÃ±a, compared to the highest 27% for savingÂ´s income that includes the rest of capital gains.
Please find below a link to a leaflet with detailed information about this.
2014 GENERAL STATE BUDGET
Law 22/2013 of December 23 for 2014 General State Budget has been published today whereby the tax rates temporarily approved for 2012 on Personal Income Tax and Non-resident Income Tax have been extended for year 2014.
Wealth Tax also has been also extended for 2014 but it will be held in abeyance as of January 2015.