Property Tax Assessment and Management in Spain
Tax Base and Rate
The tax base is determined by the assessed value of the property, which cannot exceed the market value. The Directorate General for Cadastre of the Ministry of Economy and Finance is responsible for this determination. The assessed value includes both the land value and the value of any construction.
The tax rate is defined by each municipality within limits set by the legislature. The minimum rate is 0.4%, and the maximum is 1.10%. If the municipal council does not set a rate, the
Read MoreUnderstanding Law: Sources, Regulations, and European Integration
Understanding the Law
Definition of Law
Law is a body of rules designed to guide human conduct. These rules are imposed upon and enforced among human beings within a specific territory and time frame.
Key characteristics:
- Imposed by a sovereign body.
- Regulates human behavior.
- Enforced by courts of justice.
- Applicable within specific territorial and temporal boundaries.
Divisions of Law
Law is broadly divided into two categories:
Public Law
- Tax Law: Governs public levies on economic transactions.
- Constitutional
Regulations and Decrees: A Deep Dive
Regulatory Powers
Regulatory powers represent the set of dictates issued by the government administration with a rank below the law. They serve as the bottom rung of the regulatory system’s hierarchy and comprise 98% of the provisions integrated into the normative system.
Typologies of Regulations
Regulations can be categorized from different perspectives:
- According to their scope: Regulations can be ad extra (external) or ad intra (internal/organizational).
- As they relate to the law:
- Executive regulations:
Social Services Legislation in Spain: A Regional Analysis
The Social Services Law of Galicia states that the Provincial and City Councils of municipalities with more than 20,000 people must include specific items in their budgets. City councils of municipalities with fewer than 20,000 residents who wish to provide social services must allocate at least 6% of their budgets. The CAAC may participate in financing the maintenance and promotion of basic or innovative activities of the local governments themselves.
The Social Welfare Act stipulates that the Provincial
Read MorePeaceful Dispute Resolution: Principles and Methods
Principle of Peaceful Settlement of Disputes (Article 2.3 of the Charter of the United Nations)
Members shall settle their international disputes by peaceful means in such a way that does not compromise international peace, security, and justice.
- Obligation to settle disputes peacefully.
- Obligation not to intervene on the part of States not party to the dispute; states should refrain from intervening in unrelated disputes to aggravate them.
- Total application everywhere.
- When attempting to settle disputes
Business Activity Tax in Spain: Exemptions and Calculation
Exemptions to the Business Activity Tax (IAE)
Law 51/2002 introduced a broad scope of exemptions to the Business Activity Tax (IAE). These exemptions apply to:
- All individuals carrying out an economic activity.
- Resident companies with a turnover of less than one million euros are also exempt.
Turnover essentially refers to sales activity. There are also exemptions for the first two years of starting any activity. Additionally, there is a 50% bonus for the five years following the first two years; this
Read More