New article by Düsseldorf lawyer Dr. Idelmann on Spanish tax law in real estate transactions in the German-Spanish legal journal „Informaciones“

The article by lawyer Dr. Idelmann from Düsseldorf published in German in the legal journal Informaciones II 2022 describes the possibility of having final tax assessments by the Spanish tax authorities (Agencia Tributaria) subsequently declared null and void.

This is not a judicial procedure, but an administrative procedure initiated at the Spanish Ministry of Finance as the highest Spanish tax authority.

The legal basis is Article 217 Ley General Tributaria (‚General Tax Law‘) in Spain.

An application to this effect must be submitted to the Spanish Ministry of Finance (Ministerio de Hacienda). However, such an application only has a chance of success if the Spanish tax offices can be shown to have committed serious errors in the processing and/or service of tax and enforcement notices.

The article by lawyer Dr. Idelmann takes up a case from practice.

A German citizen from North Rhine-Westphalia had sold his holiday property on Mallorca, a Finca Rústica with about one and a half hectares of land.

Years later, his entire assets in Germany were seized at the instigation of the Agencia Tributaria in Palma de Mallorca in accordance with the EU Recovery Act.
This was based on a subsequent tax audit by the Agencia Tributaria and a tax assessment notice, which was never served on the person concerned.

The enforcement by the competent tax office in Germany by way of administrative assistance in accordance with the EU Recovery Act was only terminated and lifted after lawyer Dr. Idelmann had obtained a declaration of nullity (nulidad) of the Spanish tax assessment by the Spanish Ministry of Finance in Madrid.

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The Spanish „Sociedad Limitada“ (S.L.) – the appropriate legal entity for foreign investors?

Companies wishing to invest in Spain regularly require a corporate entity to be either acquired or established.

Dr. Idelmann’s brief contribution introduces the Sociedad Limitada (S.L.), a limited liability company under Spanish law, which is very popular and widespread in Spain.

The article describes both the peculiarities of the Sociedad Limitada and its formation process. It becomes clear that in Spain many state and private bodies – namely registers, tax authorities, notaries and banks – have to be involved already in the foundation phase.

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