On the 26th December 2013 was published in the Official Gazette the State Budget Law for 2014 and like every year, again amending certain taxes, particularly the tax rates or ratios related thereto.
Let’s see what are the changes this year:
* The pensions paid by the Social Security system, are revalued in 2014, in general, to 0.25 percent.
* In order to consolidate the public finances according to the Government, in the Income Tax for Individuals it is extended the supplementary tax rate for the State full quota (In Spain part is paid to the State and part to the Regional Governments) already established for years 2012 and 2013.
* For transfers of real estate, not connected to economic activities, it is updated the weightings of the acquisition valuefor the purpose of calculating the taxable capital gain. The updating coefficients for the acquisition value will be:
| Acquisition year | Coefficient: |
| 1994 and previous | 1.3299 |
| 1995 | 1.4050 |
| 1996 | 1.3569 |
| 1997 | 1.3299 |
| 1998 | 1.3041 |
| 1999 | 1.2807 |
| 2000 | 1.2560 |
| 2001 | 1.2314 |
| 2002 | 1.2072 |
| 2003 | 1.1836 |
| 2004 | 1.1604 |
| 2005 | 1.1376 |
| 2006 | 1.1152 |
| 2007 | 1.0934 |
| 2008 | 1.0720 |
| 2009 | 1.0510 |
| 2010 | 1.0406 |
| 2011 | 1.0303 |
| 2012 | 1.0201 |
| 2013 | 1.0100 |
| 2014 | 1.0000 |
This is very important in order to calculate what would be our Capital Gain Tax when selling real estate in Spain as the amount paid for the acquisition (purchase price) plus the direct expenses that arised from the purchase (taxes, fees, etc) can be updated to current values using those correctors and therefore reducing the taxable gain and finally the tax to be paid.
* Similarly, and according to the Government, “in order to keep the path of fiscal consolidation” it is extended through 2014 the tax rates for the non resident Income Tax that was set for the years 2012 and 2013. That is:
Up to the 31st December 2014 the tax rate of 19% levied, among others, to interest and other income from lending own capital to third parties, as well as the capital gain originated during the transfer of assets, remain for one more year at 21%.
Likewise during the period referred, the general tax rate of 24% provided by the Non Residents Income Law and that charges for example, the returns on a property, whether real (rents) or estimated (own use) is also maintained during 2014 at 24.75%.
Finally, for 2014 it has also been extended the requirement to levy wealth tax in order to help reducing the public deficit. After the tax was cancelled in 2008, this tribute was reinstated in 2011, with a higher non taxable figure and provisionally for only two years, but with this extension it comes already to four and it seems that the Government will keep it as long as they are under urgent need of income.
Luis M. Vicente Burgos
VICENTE & OTAOLAURRUCHI ABOGADOS
