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EU slams Spain for taxing non-residents on theoretical property earnings
EU slams Spain for taxing non-residents on theoretical property earnings

Local Spain

time7 hours ago

  • Business
  • Local Spain

EU slams Spain for taxing non-residents on theoretical property earnings

The European Commission has said that it is "discriminatory" for Spain to tax non-resident foreigners on the value of their Spanish homes even if they don't earn income letting them out. According to Brussels, the non-resident tax rule violates the fundamental principles of the European Union, including the freedom of movement of workers and capital. The commission has demanded that the Spanish authorities modify their non-resident income tax (IRNR), specifically when it comes to real estate income. Spanish law states that non-fiscal residents have to pay tax of up to 2 percent of the cadastral value of their Spanish homes, even if they make any rental income from them. This 2 percent of the cadastral value would be 1.1 percent if the cadastral value has been revised within the last 10 years. The Spanish Treasury is essentially just charging non-residents a tax for theoretical income, even if they are not making any money from renting out their second home while not using it. However, this rule also affects Spanish residents who have a second home in Spain. For example, a Spanish fiscal resident who has their habitual residence in Barcelona but has a second home in Málaga would pay the aforementioned tax on the latter, even if they didn't make any money from it while not using it. Therefore, some commentators in Spain have said that the tax is not prejudicial at all for non-tax residents. An unfair tax for everyone perhaps, but not discriminatory towards non-residents or foreigners per se. The reason why Brussels may consider it discriminatory for non-residents with second homes in Spain is perhaps the fact that these people presumably pay any income tax derived from letting it out any of the properties they own in their own country of fiscal residence. There's also the fact that in most cases their Spanish home will be their habitual residence during the periods they spend in Spain, and in many cases their one and only Spanish property. The EU believes Hacienda's non-resident tax on theoretical earnings is incompatible with the Treaty on the Functioning of the European Union (TFEU) and the Agreement on the European Economic Area (EEA). Specifically, the Commission invokes Articles 45 and 63 of the TFEU, which guarantees the free movement of workers and capital. It also cites Articles 28 and 40 of the EEA Agreement, which provide similar guarantees for countries in the extended economic area that are not part of the EU, such as Norway, Iceland, and Liechtenstein. They argue that this tax could discourage non-EU citizens from investing or temporarily moving to Spain and creates a barrier to the freedom of movement. The Commission has urged Spanish authorities to correct the situation within a maximum of two months. If the EU find the response does not solve the problem though, they may consider starting further proceedings at the European Court of Justice. Whatever happens, it certainly indicates what could happen to the Spanish government's plans to introduce a 100 percent property tax on home buyers who reside outside of the EU, a proposed measure to help alleviate the current housing crisis. The so-called 'supertax' suggested by Spain's ruling Socialist party was officially presented in a draft proposal in the Congress in May. The text confirmed that the 100 percent would be applied to the taxable base or value of the property itself, not on the property transfer tax. This would effectively double the price of the property for these buyers. The document specified that it would be a 'State Complementary Tax on the Transfer of Real Estate to Non-Residents of the European Union'. This suggests that EU residency determines this extra property tax, rather than EU citizenship. Incredibly, if a Spanish citizen who lives in the UK wanted to buy a holiday home in Spain, they would be charged this 100 percent tax. In any case, this headline-grabbing 100 percent property tax would have to get approval in the Spanish Parliament, where Sánchez's PSOE have a weakened position, and there's every likelihood that Brussels could once again have the last word.

6 cooler places to escape the heat in Barcelona and Catalonia
6 cooler places to escape the heat in Barcelona and Catalonia

Local Spain

time8 hours ago

  • Local Spain

6 cooler places to escape the heat in Barcelona and Catalonia

The intense summer in Spain has already begun even though it's only June, and people are beginning to look at where to escape the sweltering temperatures - both inland and in the capital of Barcelona itself. You can of course go to a local beach or swimming pool, but these alternative destinations offer another way to keep fresh when the mercury rises. Vall de Boí The Vall de Boí is located high up in the Pyrenees, close to the borders with Andorra and France. It's also home to the Aigüestortes i Estany de Sant Maurici National Park (see photo above). Because of its high altitude, but set in a valley filled with lots of lakes and rivers, it manages to stay relatively cool during the height of summer. Summer temperatures range between 15C and 25C – very comfortable when compared with the city or the costas. Explore the area by seeking out its Romanesque churches, which have been declared a UNESCO World Heritage Site. Puigcerdà Puigcerdà is the largest town in area of Cerdanya, sitting right along the border with France in the Pyrenees and on the eastern side of Andorra. It stands at 1,200 metres above sea level offering plenty of mountain breezes and a summer temperature ranging between 19C to 24C. The town is also centred around a large cooling lake. For somewhere more remote, there are several charming nearby villages such as Alp and Castellar de n'Hug. Setcases Setcases is a small mountain village in the Ripollès region, just below the well-known Estació Vallter 2000 ski resort. During the summer months it offers a refreshing climate, with an average temperature between 12C and 22C. This means it's comfortable enough for hiking or cycling through the mountainous landscapes. The village itself is picturesque, filled with quaint stone houses. Places to keep cool in Barcelona Not only are these places where you can escape the heat in the city, but where you can escape the crowds too. There's no point heading somewhere slightly cooler if it's only going to be packed with people. Finding a cooler spot is all about finding somewhere high up and green with plenty of shade. Head up to the Collserola Natural Park The Collserola stretches around the hills right above the city - a huge natural park that spans over 8,000 hectares. Carpeted by forest in parts and crisscrossed with hiking paths, it offers plenty of shade, as well as cool breezes that float over the top of the city. You don't have any of the heat of the buildings or the traffic up here. While it still may be too hot for proper hiking, there are spots you can enjoy for picnics and admiring the views. Relax in the many gardens on Montjuïc Montjuïc is the large hill that rises to the southwest of the city. It's here where Barcelona hosted the 1998 Olympic Games and today is covered in verdant gardens, as well as the vestiges of stadiums and arenas. With so many gardens up here, you're sure to find one that's not too busy. Each garden has it's own unique feel - but most importantly - they mostly stay cool thanks to the numerous trees, shrubs, fountains and ponds. Hide in the shade of the Labyrinth Park Another spot to the north of the city is the Parc del Laberint d'Horta. Not often visited by tourists because it's so out of the way, it's a haven in summer to try and beat the heat. Once the grounds of an estate belonging to the Marquis of Llupià and is based on both Italian, French and English designs. It's filled with sculpted hedges, flower gardens, fountains ponds - and of course the huge labyrinth itself. There's a lot of shade and numerous benches to relax on.

Driving in Spain: The new road signs from July 2025
Driving in Spain: The new road signs from July 2025

Local Spain

time9 hours ago

  • Automotive
  • Local Spain

Driving in Spain: The new road signs from July 2025

Spain has made the decision to modernise some of its road and traffic signs to adapt to new forms of mobility, such as electric scooters and low-emission vehicles, as well as improve understanding and safety on the roads. The new catalogue of traffic signs approved by the Spanish Cabinet will come into force on July 1st, meaning you could start to see new ones on roads from next month. Local authorities have until July 2026, however, to remove old signs, so it may be a while yet. Spain's General Directorate of Traffic (DGT) has given five clear reasons why it deems it necessary to change these signs. New means of transport - The emergence of personal mobility vehicles (MVPs) such as scooters and electric bicycles, requires specific regulations. Technology and sustainability - The proliferation of electric and low-emission zones require adapted signs. Clarity and road safety - Some old signs caused confusion or had outdated pictograms. Gender perspective - Stereotypes are eliminated in several signs. International harmonisation - Spain wants to align itself with the Vienna Convention on road signs. The new catalogue of traffic signs incorporates a series of new symbols created to respond to the new realities and mobility needs posed by a constantly evolving society. As well as new signs the DGT have replaced some of the old signs with new ones. For example, the P-21 sign warns drivers that there may be children playing close by. These are typically placed near schools, nurseries and playgrounds. The only difference to the current sign is that now the brother is younger and the sister is older, rather than the other way around. The DGT has released two infographics showing some of the new signs, as well as which have been updated. New Signs The first new sign on the top left with the two people in the red triangle means is a sign to warn drivers of their proximity to nursing homes. The one next to this, known as the p-22 shows a man riding a bicycle in a red triangle. This is to warn drivers of the presence of cycle lanes. The next one down on the right hand side (R412b) with a car tyre and a block of ice indicates that you should not continue driving without special winter tires. On the left next to this is sign R-420 – an electric scooter in a blue circle. It means that drivers of bicycles and personal mobility vehicles must use the road at the entrance they are located. It also prohibits other road users from using it. Under this on the left is a blue square with an electric scooter and a bicycle on one side and a pedestrian on the other. This is S-43 which indicates the existence of a road designated for the circulation of bicycles, MVPs, and pedestrians, with differentiated space between the first two and third. The design of the sign may be adapted to the actual space conditions on each road. Next to this on the left is a blue box with a car, a cyclist and two pedestrians, plus the number 20 in a red circle. This is S-47 which indicates a traffic zone intended primarily for pedestrians. The maximum speed limit for all vehicles and cyclists here is 20km. Where applicable, personal mobility vehicles may travel in both directions, unless otherwise established. Vehicles may park only in places designated by signs or markings; games and sports are not permitted. The signs at the bottom indicate electric charging stations for vehicles, as well as LPG and hydrogen points. The DGT has also re-designed some of the old signs to update them. The top sign – the P-8, warns drivers of a level crossing at a train track without barriers. It is already in use, but it is being replaced with a new one showing modern electric train rather than the old steam train. The second one is an updated version of a sign that warns of the danger due to a section of the road with a steep upward or downward slope, the new signs now including an arrow to clarify which is which. Sign P-33, the third sign down on the infographic warns drivers about dangers due to reduced visibility in the area. This could be because of fog, rain, snow or smoke. It now shows a car half covered by black lines instead of just a few black dots, in order to make it clearer. Below that is the updated road sign which signals no entry to mopeds and lastly the new version of the road sign which prohibits entry to agricultural motor vehicles.

LISTED: The new flights to and from Spain this summer
LISTED: The new flights to and from Spain this summer

Local Spain

time11 hours ago

  • Business
  • Local Spain

LISTED: The new flights to and from Spain this summer

If you plan on travelling to or from Spain this summer, then you're in luck because many different airlines have launched new routes for the season, connecting cities throughout Spain with Europe and beyond. EUROPEAN DESTINATIONS Jerez to Birmingham, Manchester and Leeds (UK) Jet2 has launched new routes between the Andalusian city of Jerez and Birmingham, Manchester and Leeds in the UK, starting from this May up until October 31st 2025. Reus to Glasgow (UK) EasyJet launched a new route between the small Catalan town of Reus (where Antoni Gaudí was born), which started on June 2nd. Almería to London (UK) EasyJet added a new route to London Luton from the southern coastal city of Almería, starting from June 1st, with over 14,000 seats. Madrid to Manchester (UK) EasyJet is adding a new route between the Spanish capital and Manchester, operating from June 23rd with 20,000 seats. Ryanair is offering new routes to the Hungarian capital of Budapest and Krakow in Poland from Castellón in the region of Valencia. They will begin to operate from this summer with two weekly frequencies. Barcelona to Copenhagen (Denmark) Ryanair has launched a new service between the Catalan city of Barcelona and the Danish capital this summer. Seville to Baden Baden (Germany) and Rome (Italy) Irish budget airline Ryanair has launched its summer 2025 flight schedule with two new routes from Seville to Baden-Baden in Germany and Rome Fiumicino in Italy. Palma de Mallorca to Strasbourg (France) EasyJet started connecting the Mallorcan city of Palma with French city of Strasbourg on June 4th. Palma de Mallorca to Palermo (Italy) From June 23rd EasyJet it will open a new route between the capital of Mallorca and the city of Palermo on the Italian island of Sicily. Ibiza to Milan (Italy) EasyJet will fly between Ibiza and Milan-Linate from June 24th. WORLWIDE DESTINATIONS Bilbao to New York (US) United Airlines has launched a new route between the Basque city of Bilbao and New York. The inaugural flight landed on June 1st and more flights will continue throughout the summer. There will be three weekly flights from Bilbao on Wednesdays, Fridays, and Sundays at 12:30pm, and from New York to Bilbao on Tuesdays, Thursdays, and Saturdays at 9:15pm. Barcelona to Boston (US) Delta Airlines launched direct flights between Barcelona and Boston in May which will run throughout this summer with three weekly connections. Madrid to Boston (US) Another American airline, JetBlue, also launched a new Spain-US link in May with its flight between the Spanish capital and the East Coast city. Barcelona to Halifax (Canada) WestJet is launching a new seasonal direct route between Halifax and Barcelona, starting on June 27th. It will operate four times weekly until late September. This is first-ever direct connection between Atlantic Canada and Spain.

Police officer investigated in Spain over suspect's chokehold death
Police officer investigated in Spain over suspect's chokehold death

Local Spain

timea day ago

  • Politics
  • Local Spain

Police officer investigated in Spain over suspect's chokehold death

A Madrid municipal police officer chased and caught the man who had allegedly stolen his phone overnight Tuesday to Wednesday, in Torrejón de Ardoz, just east of the Spanish capital, a National Police spokeswoman said. Video footage published by Spanish media shows the officer, dressed in plain clothes, pinning the man to the ground with his arm around the suspect's neck as he waits for on-duty police to arrive. Several bystanders can be heard pleading with the officer to release his grip. "You're going to suffocate the guy, man. Let go of his neck," one person shouts. Another can be heard saying: "He's not going to run away. Just let him go." When National Police officers arrived, the suspect was unresponsive. Emergency services were called but were unable to revive him. Emergency services confirmed on social network X that a 36-year-old man had died of asphyxiation in Torrejón de Ardoz after 30 minutes of attempted resuscitation failed to reverse cardiac arrest. Authorities said they were waiting for preliminary autopsy results to determine the exact cause of death. The death has sparked outrage among left-wing groups in the Madrid region, governed by the conservative Popular Party. The left-wing Mas Madrid party demanded an investigation into the "apparent asphyxiation killing by a police officer". "If confirmed, this would be a very serious case of racist police violence resulting in the death of a North African man," the party added on X. A local left-wing group has called for a protest in Torrejón on Saturday, describing the incident as a "racist killing at the hands of police". A judge on Thursday released the officer, who has not been named publicly, while he is investigated for negligent homicide, the Madrid High Court of Justice said. The judge ordered the officer to turn in his passport and report to the authorities weekly.

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