Change to stamp tax on deeds for loans secured with a mortgage
Law 5/2019 of March 15, 2019, on real estate loan agreements was published in the Official State Gazette (BOE) on March 16.
In relation to stamp tax it introduced new legislation determining that the benefits and exemptions established for taxable persons in this or other legal provisions in relation to the variable stamp tax charge (notarial documents) are applicable only where the taxable person is determined as established in paragraph two of article 29 of the Revised Transfer and Stamp Tax Law (unless expressly provided otherwise).
In other words, as a general rule, this means that these benefits and exemptions will not be applicable to loans secured with a mortgage in which the lender is treated as the taxable person.
Approval of the 2018 personal income tax and wealth tax return forms
Order HAC/277/2019 of March 4, 2019, approving the forms for 2018 personal income tax returns and wealth tax returns was published in the Official State Gazette (BOE) on March 13, 2019 and notably specifies the following:
Time periods for personal income tax and wealth tax returns:
All taxpayers may obtain their draft return and file it via the draft/return processing service (RentaWEB), regardless of the types of income obtained.
The filing period for the draft return and both the personal income tax and wealth tax returns falls between April 2 and July 1, 2019, inclusive. If the payment of both taxes is to be made directly from a bank account, the period will end on June 26, 2019, unless only the second installment is to be paid from a bank account, in which case the period ends on July 1. Taxpayers who pay in installments and do not wish to pay the second installment at an authorized depository institution will have until November 5, 2019, inclusive, to pay that installment by way of form 102. If the first installment is to be paid directly from a bank account, taxpayers will have until September 22, 2019, inclusive, to pay the second installment in the same manner.
Regarding how to file returns, this year the option of obtaining the personal income tax return and the related payment or refund documents on a printed form has disappeared; in other words, the personal income tax return must be filed online (on AEAT's website), or over the phone, or at AEAT's offices by requesting an appointment, and taxpayers also have the option of confirming the draft return at the offices authorized by the autonomous communities, cities with a charter of autonomy and local authority entities. The wealth tax return, as in previous years, may only be filed online.
Various changes have been made to the personal income tax return, notably in the caption for “income from economic activities under the direct assessment method”, two new boxes have been added for tax deductible expenses to identify utility costs (where part of the taxpayer’s principal residence is used for the economic activity) and the living expenses incurred by the taxpayer in carrying on their activity.
Changes to the return forms for the tax on fluorinated greenhouse gases
On March 6, 2019 the Official State Gazette (BOE) published Order HAC/235/2019 of February 25, 2019, amending form 586 (“Recapitulative return on transactions with fluorinated greenhouse gases”) to comply with the amendment introduced by Royal Decree 1075/2017 of December 29, 2017 to the Fluorinated Greenhouse Gases Regulations (approved by Royal Decree 1042/2013, of December 27, 2013).
According to this amendment to the regulations, all transactions for acquisitions, imports, intra-Community acquisitions, sales or supplies, or self-supplies of fluorinated greenhouse gases performed by manufacturers, importers, intra-Community acquirers, resellers or waste managers must be reported on the form, regardless of whether they are subject, not subject, or exempt from the tax. Under the previous rules on the return (in Order HAP/369/2015, of February 27, 2015), the obligation to file a return only arose in relation to transactions for purchases, sales or supplies of fluorinated gases that were exempt or not subject.
The order entered into force on March 7, 2019.
Incentives related to real estate tax and transfer tax in the repealed royal decree-law on housing and rental have been brought back
Royal Decree-Law 7/2019 of March 1, 2019, on urgent measures regarding housing and rental was published in the Official State Gazette on March 5, 2019 and came into force the day after. In the tax field it reproduces the measures brought in through Royal Decree-Law 21/2018 of December 14, 2018, on urgent measures regarding housing and rental, which was later repealed after failing to obtain approval by the Lower House of the Spanish Parliament (Resolution by the Lower House of the Spanish Parliament, published by Decision dated January 22, 2019 –BOE of January 24, 2019-).
a. An exemption from transfer and stamp tax has been introduced for lease agreements related to housing for stable and permanent use.
b. In the field of real estate tax:
It has removed the obligation of tax authorities or public entities to charge the real estate tax cost to tenants, in the case of properties for residential use with rent restricted by law.
Local councils with a surplus are now allowed to use that surplus to increase their supply of public housing. For that reason, a reference to program “152. Housing” has been included in additional provision sixteen of the Revised Local Finances Law, effective since January 1, 2019.
Local councils are also allowed to establish a reduction of up to 95% to the real estate tax charge for homes rented at a restricted price.
It sets out the rules and safeguards related to the definition of “permanently unoccupied residential property”, for local councils to apply certain surcharges.
Approval of the average trading values in the fourth quarter of 2018 for traded securities for wealth tax purposes
On February 28, 2019, the Official State Gazette published Order HFP/202/2019 of February 20, 2017, approving the list of securities traded at traded venues, with their average trading value for the fourth quarter of 2018, for the purposes of the 2018 wealth tax return and the annual information return on securities, insurance and income.