Driving Licence in Spain

How to get a Spanish Driving Licence

Driving licences issued by a member state of the European Union or members of the European Economic Area, are valid in Spain subject to EU regulations.

The licence holder will be subject to Spanish regulations in regards to physical and mental ability to drive and the points system.

When we are referring to a licence issued with an undertimate time, the licence holder must within 2 years of taking residency in Spain apply for a Spanish licence.

Documents Required

1. Application form. Availble for download from www.dgt.es or in your local Jefatura de Trafico.
2. Proof of identity and residency. You will need originals of your passport and Certificado de Inscripcion en el Registro de Extranjeros.
3. Driving licence issued in an EU member state.
4. Photograph 32x26mm
5. Declaration stating that you have not been suspended from driving motor vehicles.
6. Declaration stating that you do not hold a similar licence issued in Spain or any other member state.

Fee

Varies anually

Nota Simple

The Nota Simple is a brief extract from the property register. It states who the property is registered to and whether there are any charges or liens placed on the property.

When you are interested in a property it should be one of the first documents that you check and satisfy yourself that all is in order.

It should also be one of the documents that is presented to the Notary on the day of signing. Make sure that the latest copy is no more than a day old and doesn't have any significant changes. An old Nota simple is no good on signing day, things may have changed from when you viewed the property and acquired the initial Nota Simple.

Spanish Tax Businesses - Estimacion Directa Modulos

Businesses subject to Estimacion Directa Por Modulos in Spain

Estimacion Directa por Modulos is a method whereby Hacienda estimate your profits subject to certain criteria.

The profits estimated have nothing to do with the real profit. For example 2 bars with 100m2, with the same bar length, and same number of tables pay Hacienda the same amount of tax, even though one bar is empty and the other is always full of people.

Hacienda offers this tax method so that smaller businesses don't have worry about accounting, or working out their taxes, in exchange this businesses pay a higher rate of tax.

Under modulos you will normally pay more in taxes than you would otherwise. There is however another side. If according to your modulo you earn 150,000€ but in reality earn 1,000,000€ you only pay for the 150,000€ estimated by Hacienda, the rest is yours.

Be aware however that not every type of business can declare under Estimacion Directa por Modulos.

This article is for information purposes only

Are you resident in Spain for tax purposes.

When is a person considered resident for tax purposes in Spain?

A person is considered resident in spain when they meet one or more of the following requirements.

• A person is on Spanish territory for more than 183 days a year. These days do not have to be continous.
• Their main source of business or activity is in Spain.
• That their spouse resides on Spanish territory.

This information is given as a guide only.

Spanish Tax Businesses - Estimacion Directa Normal

Who is assesed under Estimacion Directa Normal?
This form of Spanish tax assesment is applied to all business in Spain whether self employed or company limited unless they have chosen to be assesed under Estimacion Directa Objetiva or Estimacion Directa Simplificada (discussed in another post).

This form of tax assesment will be applied when the total sum of the business activities surpasses 600,000 € for the previous year, or the Estimacion Directa Simplificada has been renounced.

Calculation of net profit
In Spain net profit is calculated by deducting legitimate expenses from total income, allowing for modifications under the rules for Impuesto de Sociedades if applicable.

Total income is made up from sales of goods and/or services, as well as products for own use and any subsidies among others.

Total deductible costs are considered to be those that are essential in the operation of the business activity such as electricity, telephone, wages, repair and maintenance, rent, leasing amongst others.

Accounting Obligations

• Limited Company: Accounting as required by the law of commerce and in compliance with EL Plan General Contable General Accounting plan).
• Self Employed in Spain: Must maintain the following books. Sales and income ledger. Purchase and expenses ledger. Investment ledger.
• Professionals working in Spain: Income ledger. Expenses ledger. Fund provision ledger.

Quaterly Payments

Contributers assesed on Estimacion Directa Normal have to make quaterly payments on account of IRPF (income tax) on the following dates. On the first thre quarters between the 1st and 20th of April, July and October. The last quarter is paid between the 1st and 30th of January of the follwing year.

Each quaterly payment will be calculated using the following formula. 20% of the net profit achieved from the begining of the quarter up to the last date of the quarter being assesed.

Notes
Contributers that have agricultural or forestry income will be assesed differently.
Any quarter that results in no income still needs to be presented as a negative declaration.

This information is for guidance purposes only.

Spanish Tax Businesses - Estimacion Directa Simplificada

Who does Estimacion Directa Simplificada apply to?

This form of tax Spanish assesment is applicable under the following circumstances:

• The business activities are not subject to Estimacion Directa Objetiva under Spanish law.
• The previous years total business activity income does not supercede 600,00€
• The contributor has not renounced the option of Estimacion Directa Simplificada.
• There is no business activity which would oblige the contributor to be assesed under Estimacion Directa Normal or Estimacion de Regimen Normal.

Calculating Net Profit

In Spain the net profit will be calculated using the income minus expenses principle based on Estimacion Directa Normal with the following exceptions.

• Writting off of equipment will be calculated in a linear mode in accordance with the tables and guidelines for this method of assesment (Orden de 27 de marzo de 1998).
• Expenses that are difficult to quantify will be subject to 5% positive net profit from their use.

Accounting Requirements

• Self employed in Spain: Must maintain the following books. Sales and income ledger. Purchase and expenses ledger. Investment ledger.
• Professionals working in Spain: Income ledger. Expenses ledger. Fund provision ledger.

Quaterly Payments

Contributers assesed on Estimacion Directa Normal have to make quaterly payments on account of IRPF (income tax) on the following dates. On the first thre quarters between the 1st and 20th of April, July and October. the last quarter is paid between the 1st and 30th of January of the follwing year.Each quaterly payment will be calculated using the following formula. 20% of the net profit achieved from the begining of the quarter up to the last date of the quarter being assesed.

Notes
Contributers that have agricultural or forestry income will be assesed differently.
Any quarter that results in no income still needs to be presented as a negative declaration.

This information is for guidance purposes only.