PublicationsArticles

Article list 

  • Spain: A holding company’s paradise: New corporate income tax legislation in the Basque Country 5/27/2014 Practice Area Author: Daniel Armesto y Ilazki Otaegi The Basque Autonomous Community in Spain, comprising the territories of Alava, Biscay and Gipuzkoa (the Basque Country) has powers to enact its own particular corporate income tax (CIT) legislation and has used those powers to create a very interesting tax scenario for holding companies. Basque regulations compare favourably with the regulations applied in the rest of Spain and in most other European countries.
  • Tourist Real Estate: greater stringency 5/1/2014 Practice Area Author: Miguel Marques dos Santos Tourism is, without a shadow of the doubt, one of the activities with the greatest export potential for the Portuguese economy. Recent years have confirmed the resilience of the tourism sector and its importance in helping to overcome the difficult period that Portugal has been going through.
  • FOREIGN INVESTMENT: a turning point... in two gears 4/1/2014 Practice Area Author: Miguel Marques Dos Santos Foreign investment is an essential factor for the development of the real estate market of any country. Portugal is no exception. The time we’re going through now is a turning point (in the positive sense), albeit with a market reacting in two gears.
  • New tax measures affecting holdings in subsidiaries 12/1/2013 Practice Area Author: Pedro Fernández The Spanish Parliament has just enact new tax measures, which will have a significant impact on the way Spanish companies have traditionally structured their investments via holdings in domestic or foreign subsidiaries.
  • Recent tax reforms in Spain: Time to review your structure? 11/1/2013 Practice Area Author: Vicente Bootello y Álvaro de la Cueva Recent months have seen a flurry of activity by the Spanish government in the tax area. On the one hand, as we have been pointing out in earlier articles, various tax laws are being amended; on the other, Spain is renegotiating, one by one, the longest-standing tax treaties, some of which are with very major trading partners.
  • The spanish financial goodwill on the acquisition of foreign companies as state aid (again?) 10/1/2013 Practice Area Author: Rafael Calvo y Salvador Pastoriza On July 17, 2013, the EU Commission announced the commencement of a new state aid investigation procedure concerning the amortization of the financial goodwill regulated in article 12 (5) of the Spanish Corporate Income Tax Law (the “CIT Law”). This article allows companies that acquire holdings in the equity of nonresident entities (which meet certain requirements) to deduct for tax purposes the “financial goodwill” (difference between the price paid and the book value of the target not attributable to underlying assets or rights) disclosed on the acquisition, over a minimum of 20 years.
  • Spain: Does the sun attract unforeseen tax consequences? New obstacles to tax-neutral insurance portability within the EU 9/1/2013 Practice Area Author: Jorge Moreira Peláez It is a well-known fact that thousands of European citizens – British, German, Danish, Swedish, among others – choose Spain as their retirement destination, attracted by our weather and the quality of our medical services, after a long working life during which they have managed to amass the savings needed to do so. In many cases, these savings take the form of life insurance/bonds, pension plans and similar products.
  • SOCIMI: A true Spanish REIT! 3/26/2013 Practice Area Author: Luis Manuel Viñuales Spain launched a very particular type of REIT in 2009, the SOCIMI (“Sociedades Cotizadas de Inversión en el Mercado Inmobiliario” or “Listed Corporations for Investment in the Real Estate Market”), with a tax regime that was very different from any other REIT regime in developed countries. For instance, the SOCIMI was taxed at a reduced 19% corporate income tax rate, whilst a typical feature of REITs is that the vehicle is not taxed but must distribute a significant part of its profits regularly, so that its dividends are normally taxed in the hands of its investors. This 19% tax at the level of the SOCIMI raised concerns among international investors about how to avoid double taxation.
  • Limitation of liability: a warning from Spain 3/20/2013 Practice Area Author: Markus Gómez Dabic In a recent decision, a Spanish court held that a ship owner was not entitled to limit its liability with respect to damages caused to adjacent yachts due to a fire spreading on board his yacht while berthed.
  • Your children are residents. What about you? Take another look at your tax status 3/6/2013 Practice Area Author: Alberto García Suau The school year in the Balearic Islands starts at the beginning of September each year and ends well into June of the following year. This means that pupils at Spanish schools must spend approximately 9 months of the year in the country, or around 260 days, in order to attend their classes, not including vacation.
  • Brazilian interest payments on net equity (Juros sobre o capital próprio): an international perspective 2/1/2013 Practice Area Author: Pedro Saavedra y Antonio Pereira, Garrigues. Henrique Erbolato y Daniel Marcondes, CFA Advogados, Sao Paulo, Brasil Brazilian companies have two main instruments for remunerating shareholders for the capital invested in companies: dividends and interest on net equity (“Juros sobre o capital própio”, referred to as “IoNE” in this article). Both instruments can be used at the same time, but their tax treatment will depend on the particular characteristics of each case. While dividends feature in most jurisdictions, IoNE is unique to the Brazilian system. The following paragraphs focus on describing -and characterizing IoNE- under Brazilian domestic legislation from the perspective of tax and corporate law.
  • Tax measures to boost the spanish real estate market (I) 12/1/2012 Practice Area Author: Manel Maragall It is not all bad news in the area of real estate taxation in Spain. It is true that the Spanish Government has been forced, by pressure from Brussels, to raise the VAT rate on residential property from the current 4% to 10% starting next year. It has also committed to eliminating the personal income tax credit for homebuyers (principal residence) starting on January 1, 2014.
  • Some current trends in taxation in emerging markets: Brazil, China and India 11/1/2012 Practice Area Author: Daniel Armesto Macías The gradual transition of the BRIC economies towards a focus on domestic growth is matched by a corresponding shift in tax policy. The following article considers the development of taxation in Brazil, China and India, particularly with regard to how they will affect inward investment.
  • Updates from Spain on marine insurance: adding sue and labour expenses to a total loss claim beyond the amount insured only if agreed upon in the contract 10/3/2012 Practice Area Author: Markus Gómez Dabic In a recent decision of the Commercial Court of Madrid, the court held that the sue and labour expenses incurred while attempting to save a vessel were not recoverable in addition to a total loss claim where the policy explicitly included a limit on the indemnity.
  • Tax amnesty 9/21/2012 Practice Area Author: Pedro Fernández The vast majority of readers are surely aware of the opportunity currently open in Spain for filing a special tax return that, in return for paying a limited amount, would put an end to any existing income tax contingencies.
  • Spain: Key new legislation introduced by the Insolvency Reform Law 5/4/2012 Practice Area Author: Antonio Fernández, Borja García-Alaman, Adrian Thery and Juan Verdugo Distressed companies in Spain have tended to shy away from formal insolvency mechanisms, leaving them to the very last minute, when it was already too late. This was very clearly the case when the nineteenth century bankruptcy law and the “suspension of payments” law providing standstill protection from the 1920s, were in force. The introduction of more stringent provisions on directors’ liability towards the end of the 20th century did nothing to reverse this inaction.
  • Spain deepens the restructuring of its financial sector 4/1/2012 Practice Area Author: Napoleón Ruiz, María Muñoz de Juan With the approval by the Commission on 28th January 2010 of the Spanish Scheme of Recapitalisation, Spain kicked- off the restructuring of its financial sector.
  • Objective: preserving value 5/30/2011 Practice Area Author: Antonio Fernández, Borja García-Alamán, Adrián Thery and Juan Verdugo
  • Renewable Energy in Spain: Renew or Perish 2/15/2011 Practice Area Author: Antonio Fernández y Adrian Thery
  • Garrigues – Paving the way for CSR in Europe 9/21/2010 Practice Area Author: