Spanish Asset-holding company

ASSET-HOLDING COMPANIES

The main reason why partnerships are formed is in search of tax savings. Within these fiscal effects, the patrimonial society can offer certain advantages to its partners:

In the first place, they allow the patrimonial assets to be taxed by means of the Corporate Tax. This implies that the administrator can be taxed at the general rate of 25%, instead of the IRPF which can reach 45%. In addition, in the case of a company, it will not be subject to corporate income tax for unproductive real estate, while an individual would have to apply the personal income tax for second homes.

In certain cases it would even be possible to declare the VAT on the purchase of a property, something that a private individual obviously cannot do. Although for this it would be necessary to allocate it to the "productive" part of the asset.

The succession of patrimony is facilitated for the heirs.

Therefore, the asset-holding companies are the classic way of tax savings for large estates.

With regard to more modest estates, the truth is that they may not represent a saving:
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VAT rate for face masks in Spain

Application of the 4 percent Value Added Tax rate to deliveries, imports and intra-Community acquisitions of masks.

VAT on disposable surgical masks is reduced from 21% to 4%.

This decrease affects only this type of masks, the ones that are normally blue disposable, those that before the pandemic we used to see only in hospitals. But it leaves out other types, such as FFP2 (those that offer greater protection, normally white) or hygienic masks (those made of cloth).

The Royal Decree-Law 34/2020, of November 17, establishes in its Article 7 the following:

In its Article 7 it specifies the Application of the 4 percent rate of Value Added Tax to deliveries, imports and intra-community acquisitions of masks.

With effect from the entry into force of this Royal Decree-Law and in force until December 31, 2021, the 4 percent Value Added Tax rate shall be applied to the deliveries, imports and intra-Community acquisitions of disposable surgical masks referred to in the Agreement of the Interministerial Commission on Drug Prices, of November 12, 2020, whereby the maximum amounts of sale to the public are revised, in application of the provisions of Article 94. 3 of the rewritten text of the Law on
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Wealth Tax in Spain

Wealth Tax in Spain

Wealth tax (IP) is a direct, general and personal tax on the ownership or possession of wealth, levied on its net value, on a periodic basis. It is a strictly individual tax levied on individuals and is complementary to Personal Income Tax (IRPF).

The taxable event is the ownership of the net worth (assets and rights minus obligations and debts) of individuals, held as of December 31, the date on which the tax is due.

Obliged to present it, the exempt minimum

Those taxpayers whose taxable income exceeds 700,000 euros are obliged to file the wealth tax, taking into account the value of all their assets or rights and excluding the value of the main residence (up to a maximum of 300,000 euros).

Law 22/2009, of December 18, 2009, which regulates the financing system of the Autonomous Communities of common regime and Cities with Statute of Autonomy and modifies certain tax regulations (BOE of December 19), establishes in its article 47 that the Autonomous Communities may assume in the Wealth Tax, among other regulatory competences, those related to the

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The 7p) exemption in the IRPF covers the days of travel to the country of destination or return to Spain

Included among the earned income received for work effectively carried out abroad to which the exemption provided for in Article 7 p) of Personal Income Tax Law 35/2006 applies, are those corresponding to the days of travel to the country of destination or return to Spain.

The question under discussion here is whether the exemption regulated in article 7 paragraph p) of the Personal Income Tax Law 35/2006, should also apply to those days in which the interested party travels abroad to render services for a non-resident entity.

Article 7.p) of Law 35/2006, of November 28, on Personal Income Tax and partially amending the Corporate Income Tax, Non-Resident Income Tax and Wealth Tax Laws, establishes that "the following income shall be exempt:

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p) The income from work received for work effectively carried out abroad, with the following requirements:

1.º That such work is carried out for a company or entity not resident in Spain or a permanent establishment located abroad under the conditions established by regulations. In particular, when the
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