Tax
Related-party transactions are consolidated as a preferential point of attention for the Public Treasury
In recent years, we have witnessed a notable increase in the investigation and verification of transfer pricing issues by the Spanish tax authorities. We review the most common controversies in this area, outlining potential recommendations.Taxation of royalties: the Supreme Court gives primacy to the Directive over agreements
In a recent and controversial judgment, the Supreme Court affirms that when the Interest and Royalties Directive cannot be applied because the recipient of the royalties is not the “beneficial owner”, the withholding tax rate established in the Spanish domestic non-resident income tax regulations must be applied, rather than the reduced rate of the corresponding Tax Treaty for avoiding double taxation, given the primacy of EU law.SAFE: Mechanism for financing the defense sector in Poland by the European Union
The European Union has taken an unprecedented step towards strengthening its common security and defence policy. In this article, we discuss the main objectives of the programme, its legal instruments and the tax implications for entities participating in defence procurement.The EU promotes the elimination of the VAT exemption on short-term rentals
Directive (EU) 2025/516 introduces a significant reform in the VAT scheme applicable to short-term rentals, which is set to take effect on July 1, 2028. The reform will mean that rentals of accommodation to the same person for a maximum of thirty nights will be subject to VAT, on the basis that this type of rental has a similar function to the hotel sector. In addition, the role of digital platforms in collecting VAT is strengthened. It will be necessary to closely monitor the adaptation of this Directive to Spanish law in order to determine its final scope.Portugal: Exceptional extension of tax deadlines in municipalities affected by Storm Kristin
Following the state of calamity caused by storm Kristin, the Portuguese government decided to allow taxpayers and certified accountants with a registered office or domicile in the affected areas to fulfil their tax obligations without the imposition of interest or penalties until the end of April.If an EU-resident recipient of a royalty is not its beneficial owner, the reduced withholding rate under the tax treaty cannot be applied either
According to the Supreme Court, if the payments fall within the scope of the Royalty Directive and the exemption does not apply because the recipient is not the “beneficial owner”, the withholding must be made by applying the rate of the domestic legislation and not that of the relevant tax treaty.E-commerce in light of recent changes to customs regulation
In order to strengthen control and revenue collection, and to encourage more efficient and sustainable logistics models, the EUR 150 customs duty exemption is set to be abolished from mid-2028, with a transitional EUR 3 customs duty to be introduced in the interim. Additionally, a handling fee per package is expected to be introduced and the use of IOSS (Import One Stop Shop) is to be encouraged to simplify customs clearance.