2007 The Year of Changes

As all of Europe enjoys a very mild winter the Costa del Sol does its name proud and basks in clement sunshine. Clear blue skys and gentle temperatures make this a very pleasant place to spend January; exchanging the rain and darkness of the North for the fairways and café society of Marbella.

CHANGES TO TAX SYSTEM

As of January this year a new set of amendments have come into effect with regard to taxation and personal income tax for residents, non-residents and Spanish companies.

Many of the changes are geared towards greater clarity and simplification, such as the income tax system, which has seen one of its five tax brackets abolished, and the application of a flat rate of 18% for capital gains and investment income.

The maximum income tax rate has been dropped by two points to 43%, while the minimum rate has risen nine points to 24%, with the maximum income level for those exempt from submitting a tax return increasing from €3.400 to €9.000. As you see, a lot of it is good news, as is the fact that Capital Gains Tax for non-residents selling their Spanish property has been cut from 35% to 18% and the withholding tax upon sale has dropped from 5% to 3%.

Corporation Tax, likewise, has been lowered to between 32.5% and 25%, with further reductions expected in 2008. The bad news is that properties held through companies (sociedades patrimoniales) have seen their 15% tax rate on capital gains abolished and are now taxable as stated above but on the whole both industry professionals and buyers have reacted positively to the new tax regime, as it is particularly favourable to non-residents.

EREN LAUNCHES NEW WEBSITE AND MAGAZINE

The European Real Estate Network™, an exclusive collaboration of 20 leading specialists in high-end property from across Europe, has just launched the second edition of its Villae International Magazine. “We’re really pleased with our new magazine and website, which are two important platforms for EREN,” said Diana Morales of DM Properties, the organisation’s exclusive representative in southern Spain.

Designed and produced by Manifesto Design and Giordano Conca Active to the style and specifications of EREN, this quality publication reflects the high standards of the organisation. In addition to editorial features of high standing and a selection of the finest properties available in Europe, the second edition of the magazine also includes a sampling of sumptuous American homes from the prestigious Luxury Portfolio Fine Property Collection™.

In addition to the new edition of Villae International, the EREN website (www.europeanrealestate.org) also features freshly updated content and a new design aimed at further facilitating easy navigation of this authoritative resource. For more information contact DM Properties (+952 76 51 38) or Manifesto Design (+952 880 923)

Diana Morales, 19 Jan 2007 - News