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Budget 2014

On 26 December 2013, the Spanish Official Gazette published Law 22/2013 of 23 December 2013 regarding the Budget for 2014. Details of the Budget, which unless  indicated will apply from 1 January 2014, are summarized below.


Income tax rates for non-residents

  • Income tax rates for non-residents set for the years 2012 and 2013 are extended to year 2014, in order to maintain the fiscal consolidation


Corporate taxation

  • New coefficients applicable to the acquisition cost of immovable assets when they are transferred are approved. 
  • The Law establishes the regulation of the advance payments for year 2014. 
  • The Law adapts the corporate tax law to the Court of Justice of the European Union (ECJ) jurisprudence regarding the transfer of the residence of a company, the cessation of activity of a permanent establishment (PE) and the transfer of assets of a PE abroad. For this purpose, the possibility is established of deferment of payment of the tax due derived from the circumstances where the assets are transferred to another EU Member State, until the date those assets are transferred to a third party. 


The following tax measures are extended to year 2014:

  • the reduced tax rate for small companies where they maintain or create new jobs.
  • the tax incentives for the expenses incurred and investments made in order to benefit the employees training in new information technologies.


Individual income tax

  • The following tax measures are extended to year 2014 
  • The supplementary surcharges on the tax due established for years 2012 and 2013; 
  • The reduction of the net profits derived from business activities where employment is created or staff is maintained in the activity; and
  • The tax credits for expenses and investments made in order train employees in information technology.
  • The coefficients applicable to the acquisition cost of real property in order to calculate the capital gains when that property is transferred are increased in 1%. 


Wealth tax

  • The levy of the wealth tax, temporarily established for years 2011 and 2012 and extended to year 2013, is newly extended to year 2014 in order to help the reduction of the public deficit. 



  • Regarding exempt domestic transactions regarding the custody and care of children, the requirement of children being younger than 6 years of age is repealed. 
  • Regarding the special rules of the place of taxation of services related to intangible assets or rendered through electronic means it is established that they are supplied in Spain if they are located outside the European Union and their effective use and enjoyment takes place within the Spanish VAT territory. The mention to the location in the Canary Islands, Ceuta or Melilla is repealed. 
  • Regarding the time of taxation of intra-community transactions, the provisions referring to the time of taxation of deemed acquisitions are repealed.