On 26 December 2013, the Budget for Spain’s fiscal year 2014 was published in the official gazette. It contains several new tax measures as well as the extension of existing measures that are to increase Spanish tax revenues.
On 26 December 2013 the budget for Spain’s fiscal year 2014 was published in the official gazette. It contains several new tax measures as well as the extension of existing measures aiming at increasing Spanish tax revenues. Following are the most important measures the
2014 budget contains.
Firstly, following the verdict of the Court of Justice of the European Union on 25 April 2013 that Spanish exit tax rules discriminate against non-residents, measures have entered into force retroactively as of 1 January 2013. Therefore, from 1 January 2013 onwards, gains derived from entities migrating to other countries will remain untaxed until the assets have actually been transferred to a third party. The same goes for gains derived from transferring assets of permanent establishments in Spain to other EU member states.
Secondly, the lowered corporate tax rate of 25% has been extended for fiscal year 2014 for all entities whose turnover does not exceed
EUR 5 million and have less than 25 employees – provided the entity maintains those employees or creates new jobs.
Finally, the withholding tax rates for the fiscal year 2014 will remain unchanged compared to fiscal year 2013. This means that, depending on the type of payment, a withholding tax of 21% or 24.75% will be applicable on all payments to foreign entities and individuals.