Tax implications for Landlords in Mallorca, Spain

In a recent collaborations with Alfonso Benavides & Associates, we spoke to them about tax implications on property owners in Spain and what owners are required to do.

Below is an extract of their introductory information for anyone unsure of what is required of them:

All employers, professionals, and landlords or lessors of property for housing and commercial purposes, as taxable persons for the purposes of IVA (Spanish VAT), are obliged by law to keep invoice records.

Generally speaking, both employers and professionals, as taxable persons for the purposes of IVA, are obliged to keep the following records:

  • Record of invoices issued
  • Record of invoices received
  • Record of investment assets
  • Record of certain intra-Community operations

Manual, computerized or electronic accounting systems are all considered valid for making entries and annotations to the records of invoices issued and received and investment assets.

Record of invoices issued

Invoices or substitute documents issued in relation to all IVA transactions, as well as amendment invoices or substitute documents should be registered in the record of invoices issued.

Record of invoices received

Invoices relating to goods purchased or imported and services received in the conduct of the business or professional activity should be recorded in the record of invoices received.

Record of investment assets

This record must be kept by those taxable persons who qualify for investment deductions. The following details should be recorded:

  • All investment assets, itemized individually
  • Precise details to identify the invoices and customs documents relating to each asset
  • The date of commencement of use, the definitive pro-rata rate (DPR) and the annual adjustment for the deductions, where applicable, for each itemized asset.

Find out more:

If you would like further information regarding this information, contact Alfonso Benavides Y Asoc. S.L. by email.

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