Because of the free movement of people within European Union territories and increasing globalization, it is becoming more common for our office to receive requests for consultation from workers posted here and from business people from other countries within the EU who have decided to invest here.
This measure results in the exemption of the over-65s from Capi-tal Gains Tax if they use the proceeds of any asset sale to buy a pension-related annuity.
Through our team of associates, we provide advice and support to businesses so that they can meet their obligations to reduce risk, with the aim of improving management, reducing costs and lowering the rate of workplace accidents.
It is a fact of life that the business world is increasingly competitive and globalised and with this in mind, we provide a professional translation service using only native speakers who have extensive business experience so that both private individuals and businesses can adapt to the new demands of the market.
Through our team of associated translators we can produce professional translations from Spanish to English which are true to the original material, guaranteeing efficient communication with a quick turnaround.
Businesses: translation of websites, company presentations, campaigns, business documents (internal and external), hotels and restaurants. Guaranteeing the highest levels of professionalism, efficient communication and providing the best possible image for your company.
Individuals: translations of CVs, educational certificates, letters, emails, official documents and proofreading services.
So far, in the transmissions of properties applied update coefficients that allow correcting the monetary depreciation of immovable acquired before December 31, 1994. Also in transmissions assets (shares, properties...) acquired prior to that date were also applied coefficients of gloom.
From January 2015 indexation will no longer apply which means that accumulated inflation will no longer be taken into account when calculating the capital gain made from the sale of a property. This will involve a significant increase in the burden to the taxpayer. The reform also establishes limits on inflation relief for the transfer of assets with a price of over €400,000, the effect of which we will analyse some other time in this blog.
Here is an example of how the elimination of the said inflation relief affects the sale of a property to better understand it.
|Acquisition price: €100,000||Acquisition price: €100,000|
|Indexing (2014): 1.2560||Elimination of indexing|
|Acquisition price (indexing applied):
|Net sales price: €150,000||Net sales price: €150,000|
|Capital Gain: €24,400||Capital Gain: €50,000|
Lets calculate the taxable amount (on the Capital Gain made)
|Up to €6,000: 21%||* Up to €6,000: 20%|
|€6,000 to €24,000: 25%||* €6,000 to €50,000: 22%|
|From €24,000: 27%|
The first €6,000 at 21% = €1,260 The first €6,000 at 20% = €1,200
€6,000 - €24,000 at 25% = €4,500 €6,000 - €50,000 at 22% = €9,680
€24,000 - €24,400 at 27% = €108
TOTAL TAXATION 2014€5,868
TOTAL TAXATION 2015€10,880