The Spanish government has passed on the 9th of July 2021 the Act 11/2021 with new prevention measures and actions against tax fraud in Spain.
Here are some of the changes approved:
VALUE OF PROPERTY FOR DIFFERENT TAXES.
The Government has introduced the Cadastre reference value which will be the minimum value to be declared for a property in the transfer of same due to inheritance or gift. (Inheritance Tax and Gift Tax). In case of purchase and sale of a property where the value declared for transfer tax or stamp Duty is the price paid, the transaction will have as minimum value to be declared the Cadastre reference value.
This value will also affect the Wealth Tax Assessment. Any property owner who has to present this assessment will now have to declare the highest value between 1) the cadastral value, 2) purchase price 3) the value verified by the Tax Authorities and 4) the Cadastre reference value.
This reference value will be published annually by the Cadastre which is Department of the Tax Authorities and will be based on the prices paid in transactions signed before a Notary Public, to try to make the declared value equivalent to the market value of the property.
Please note that this will not affect those taxes based on the ratable value of the property as Non Resident Income Tax for the use of the property or local rates which are based on the ratable value of the property (valor catastral)
Specific reporting obligations on cryptocurrency are established, the entities have to report on the operations carried out by their clients.
Also the law introduces the obligation to disclose the possession of virtual currencies out of Spain in tax form 720 where the assets owned abroad should be declared by those who are residents in Spain.
LIMITATION OF CASH PAYMENTS
Cash payments between professionals are reduced from 2.500 Euros to 1.000 Euros; this does not affect payments made by private individuals. For Spanish individual nonresidents the limit for cash payments is in turn reduced from 15.000 Euros to 10.000 Euros.
SURCHARGES AND PENALTIES FOR LATE FILING.
If no demand has been received by the tax office the surcharges are reduced to 1% for each full month of delay for less than one year. The surcharge will go up to 15% plus late payment interest if the delay exceeds 1 year.
Also there are reductions in the penalties for assessments signed in agreement with the tax office which has increased from 50% to 65% and from 25% to 40% for penalties paid forthwith without any objection.
With this the tax offices wishes to encourage payment and avoid litigation.
PROHIBITION OF TAX AMNESTIES.
It is expressly prohibited by law any possible amnesty involving the reduction of the amount of the tax debt.
The concepts is extended to include non cooperative jurisdictions where there is opacity and lack of transparency, absence of regulations on mutual assistance, attracting profits with no real economic activity, low or no taxation etc.
The government will publish the list of tax havens, which will then be reviewed periodically.