What is complimentary tax? During the property boom in Spain purchasers and sellers sometimes came to an agreement to pay some of the purchase price ‘unofficially.’ This meant that the amount declared was below what had actually been paid. The idea was that by doing this purchaser and seller could avoid higher capital gains tax and Spanish transfer tax payments. The Tax Authority wised up to this and as a result began to check the amount the property had been sold at against their own valuation. Complimentary tax represents the difference between what tax they considered should have been paid and what actually was. Unfortunately the drop in the market value of most property sold today … [Read more...] about Wave of complimentary tax hits home buyers
Archives for February 2012
Getting to the bottom of Spain’s daunting unemployment rate
Of the many bits of bad economic news Spain has received this past year, including finding deficits were higher than expected and growth rates much lower, perhaps no other figure has proven as weighty and daunting as the country’s unemployment rate. Reports released at the end of January saw that number rise to 22.9 percent, adding another dismal headline to the Rajoy government’s first full month in office: nearly 5.3 million people out of work with declines in available positions across the board, from services to the country’s still collapsing construction sector. Capturing the dour outlook of the country’s current situation, The Atlantic’s Derek Thompson summarized the statistics … [Read more...] about Getting to the bottom of Spain’s daunting unemployment rate
La Liga: Sevilla’s woes leave Marcelino high and dry
Only a week ago, Sevilla Sporting Director Ramón Rodríguez Monchi declared full confidence in his coach Marcelino García Toral. His faith only lasted a week, however, with a 2-1 home defeat to Villarreal proving the final nail in the coffin. Still believing he could turn the team’s fortunes around, the coach refused to quit on Sunday evening but the decision was taken out of his hands. Following an emergency meeting with soon-to-be-incarcerated club president José María del Nido and Monchi on Monday morning, he was given his marching orders. Only in the job since the summer of 2011, he was brought in to replace Gregorio Manzano – who was himself recently dismissed by Atlético Madrid – … [Read more...] about La Liga: Sevilla’s woes leave Marcelino high and dry
Back to the future with Rubalcaba
Unity, strength and change were the basis of Alfredo Pérez Rubalcaba’s rallying cry on winning the Spanish Socialist Party primary by the slimmest of margins on Saturday. But unity currently looks a tall order for the party, given that its 900 or so delegates were divided almost exactly down the middle in choosing Rubalcaba over Carme Chacón. And it can hardly daw on much strength, either, following its record losses in local and general elections in 2011. Rubalcaba himself was the candidate who suffered the general election loss, the Socialists’ worst in the democratic era, and it is now he who has been chosen to pick up the pieces and redefine the party. So change it is. What that … [Read more...] about Back to the future with Rubalcaba
UK to dodge the recession bullet?
(In case you don't know, the UK services PMI is a monthly measure of productivity in the UK services industry. It accounts for two thirds of economic output in Britain, and so is crucial in determining UK growth.) This month UK services took market forecasts, chopped them into small chunks with onions and carrots, fried them, and ate them for dinner. The PMI hit 56.0 (releases above 50.0 mean growth and the higher the better.) This compares to 54.0 the month before, and expectations of a slowdown to 53.5. It’s a 10 month high for UK services, and the biggest single jump on record. Great! Of course, before this, economists thought Britain would soon be re-entering recession. The economy … [Read more...] about UK to dodge the recession bullet?
Electricity bills back to normal
Many people rely on electric heating. This has caused some concern over the past couple of years as costs have escalated and there have been some confusing changes to charging policy. However, there has recently been some good news as far as your bills are concerned. Instead of every month, there will be a welcome return to two-monthly billing and only after a metre reading has taken place. The alternating meter/estimate bills have been something of a nightmare for people trying to budget. One month you can be charged a nominal figure of 7€ to receive a bill the month after of 100€! Hardly helpful when you’re trying to keep your bank account in the black. However, if you actually … [Read more...] about Electricity bills back to normal
Spain’s Socialists will get a new leader, but will they get new ideas?
The Socialist conference in Seville, where a new leader will be chosen this weekend, is supposed to set the tone for the party for the next few years. But the weeks leading up to the event have been dominated more by rumour and intrigue than ideas. This hearsay and speculation has focused in great part on which of the two candidates certain heavyweight party figures will put their weight behind. For example, whether José Antonio Griñán, Socialist leader in the party’s stronghold of Andalusia, will support Alfredo Pérez Rubalcaba or Carme Chacón. Reports suggest he will back the latter, but former Prime Minister Felipe González, by contrast, has come out in favour of the veteran Rubalcaba … [Read more...] about Spain’s Socialists will get a new leader, but will they get new ideas?
Spain’s film dubbing: ghost of a fascist past must be laid to rest
Most ex-patriots living and working in Spain will be all too aware of the Spanish penchant for dubbing foreign-language films. Whether Spanish-speaking or not, this is enormously irritating, particularly for those of us not living in more cosmopolitan cities like Madrid or Barcelona, with more cinemas showing films in original version. The nearest big city to me is San Sebastián, which hosts an annual international film festival famed for its predilection for the avant-garde. Throughout the festival, all showings are in original version and San Sebastián is extremely proud of its cinematic culture. Yet after almost 60 years of hosting the event, there is still only one small, two-screen … [Read more...] about Spain’s film dubbing: ghost of a fascist past must be laid to rest