GOOD NEWS ON INCOME TAX FOR FISCAL RESIDENTS IN SPAIN This time, Arcos & Lamers Asociados has

the pleasure to inform you on another relevant reduction at the Spanish Tax System, this time, specifically at the Income Tax in Spain for tax residents who start to carry out an economical activity as from 01.01.2013 (I.R.P.F, Impuesto sobre la renta de las personas fsicas) as mentioned at Spanish Law 04/2013 of 22nd February, which is meant to improve and increase Spanish economy. Specifically chapter two of the mentioned law is including relevant reductions at the Spanish Income Tax. Of course, limitations on these reductions have been included as well. The reduction entitles a relevant decrease of 20% of the positive income generated. Congratulations! Limitations to the mentioned reductions: 1) year. 2) 3) The reduction of 20% is applicable for the first 100.000 Euros profit only. The reduction of 20% is not applicable in the event that more than 50% of the That the individual who starts the activity has not carried out any activity for one

income is generated by the same client (individual or company) that was contributing previously to the Income out of Work (rendimientosdeltrabajo). In Andaluca, the general Spanish scale with regards to the Income tax in Spain goes from 24,75% up to 52,00%.

As a guide-line:

INCOME EUROS

RATE

33,007 to 53,407

40%

120,000 to 175,000

49%

Up to 300,000

51%

Over 300,000

52%

Addition information with regards to the reduction of Spanish Company tax that is appearing at the mentioned Spanish law 04/2013 can be found here . The professional team of Arcos & Lamers Asociados has the legal/fiscal knowledge, resources, experience and skills to help clients deal with any matters related to the services listed below. CIVIL PURCHASE TAX LAW: CORPORATE INHERITANCE, SPANISH TRADEMARKS CRIMINAL BANKRUPTCY LEGAL AND FISCAL ADVICE IN OTHER SERVICES LEGAL & TAX LAW, WILLS EMPLOYMENT AND AND SALE AND EXTRAJUDICIAL OF TRADE AND REAL ACCOUNTING PROCEEDINGS ESTATE ADVICE COMPANIES SUCCESSION ADVICE PATENTS LAW PROCEEDINGS GENERAL

Do you need an efficient registered accountant in Spain? Contact now, Arcos & Lamers Asociados, your multilingual registered accountants (economists) inMarbella, solicitors and lawyers inSpain under one roof! This information has been published byArcos & Lamers Asociados, your registered accountants in Spain! The same is not legally binding as the above is for informative purposes only. Marbella, April, 2013.