On September 27th, the bill of the 2013 Budget was introduced by the Parliament and another bill was presented one week later about possible changes of different taxes. We can infer the economic and politic guidelines that will be followed by the State from reading both texts.

The reasons are well known; basically the State will seek to reduce to 3% the deficit of the GDP pursuant to the Stability and Growth Pact in order to be synchronized with the rest of the economies of Central Europe.

In this sense, we will divide the possible changes according with the different taxes:

Income tax on Individuals (IRPF)

a) The deduction for investment in primary residence will be eliminated from January 1st 2013.

– A temporary regime is established in which  the deduction will be possible for investments in residence in the future tax years only if the taxpayers can acquire or pay to build, expand or rehabilitate the house before December 31th, 2012.

b) Lottery prices from  the State or the Local Autonomies, from the National Organization of the Spanish Blinds or visually severely impaired, from the Red Cross and similar European organizations will now be subject to this tax, whereas before they were not.

– This new payment will be 20% of the prizes exceeding 2.500€

c) In the Savings Income Tax,  the basis to calculate the rate will only include the capital benefits and losses derived from the transmission of capital elements that remained in the estate for more than one year, in order to fiscally penalize the speculative movements.

d) The rule to calculate the payment in kind of housing assignment to employees will be modified if the residence does not belong to the company.

Non Resident Income Tax (IRNR)

As well as for the Individual Income Tax, there will be a new payment of 20% of the lottery prices mentioned before.

Corporate Income tax (IS)

It will be a partial limit to big companies for the tax-deductible depreciation for years 2013 and 2014.

Value Added Tax

a) The allotment of properties from joint ownerships to the partial owners will be considered as goods supply.

b) In forward transactions, it would be enough to ask for the payment of one installment in order to modify the taxable base. There will also be new technical modifications to correct invoices addresses to receivers that are neither professionals nor entrepreneurs.

Transfer tax. Stamp tax. (ITP/AJD)

There are not going to be taxation for records of seizures ordered by the competent authorities.

Local Taxes

a) Properties being part of the Historical Patrimony will not benefit from the exemption anymore if they are used for economic operations.

A new option of tax rebate is created for the town councils in this regard.
b) The tax rebate applicable to the Tax on Building Works and Installations will be extended to the Property Tax and to the Economic Activities Tax, for economic activities declared of special interest or usefulness to the municipality because of their social, cultural, historic or artistic features or for promoting employment.

c) In the Economic Activities Tax, it is now clear that the reduction fixed in the Tariff will also be applicable to the surface. Incompatibility between applying for the reduction and ceasing the activity is also stated.

Net Worth Tax

It will be extended to 2013.


About the Real State Cadastre

a) It previews the possibility of an abbreviated procedure of cadastral inspection.

b) It establishes that the stated values can’t be challenged during an individualized determination or at the posterior application of the resulting cadastral values.

c) There is going to be more flexibility in cadastre updates.

Revaluation of the account balances

There is going to be an option for the taxpayers of the Corporate Tax, the Personal Income Tax and the Non Resident Tax, to revaluate their balances.

Mauricio Ticó