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There is a constantly increasing interest of shareholders, especially those belonging to the younger generation, addressing certain questions or aspects related to the cycles of a company, or relations with other shareholders. The queries rise, irrespective of whether they are family businesses or not. When it comes to deliberate about family business, we recommend the regulation of business or social agreements, by means of the so-called family protocol, which contains all or part of these agreements. Key point is: Important agreements for the future development, both of the business transactions and of the relations between the partners, should be recorded in writing. This measure can avoid future litigation, which we do not recommend to any of our clients, particularly in the current scenario where judicial pursuits are affected by notorious delays. I will focus on matters governed by agreements between partners or family protocols, separately, although I anticipate that basically, there are no particular limits fixed. However, it is compulsory to be clear about the goals you want to achieve with these agreements. Our task as professionals is to protect your interests because, after all, that is what you pay us for.... Supreme Court Judgment 120/2020 In fact, the latest Supreme Court ruling number 120/2020, dated 20/02/2020, by the Excellency Mr. Juan María Díaz Fraile is particularly interesting. It is to him that we owe the clarity in his remarks and the dispute of the fundamentals. His legal arguments are absolutely revealing. We hope that this magistrate will keep substantiating his arguments with the same clear expressions in the future, also spurring other colleagues to exhibit their judgments in understandable, more natural language... this would make the deal with our clients so much easier! Paper is patient. Often there are disputes based on agreements that have been fixed in writing and that we consider as legal. Then, after some time, it turns out that these agreements do have various snags. The content of the above-quoted judgement enables me to give you several suggestions in the field of company law that may be useful for your own companies. However, I would like to point out that I will refrain from going into scientific, legal analyses that would be more suitable for other forums. With my contribution today, I would merely like to provide a summary of the most important points: 1- Validity of the shareholders' or partnership agreement The Supreme Court once again ratifies, without any doubt, the validity of these agreements as long as they do not exceed the limits of the autonomy of will. This means that, as usual in the legal process, it will never be possible to give validity to an agreement, even if signed by the parties, which is against the law, morality or public order. Imagine, for example, that a family protocol stipulates that a certain race or gender (and I have effectively found this in some protocols, no doubt dating back to older times!) is not allowed to enter the family business for employment. 2 - Family protocol as a form of shareholders' or company agreement The Supreme Court examines the FAMILY PROTOCOL. It defines it as one of the modalities of the company agreement, but warns that in practice, these protocols have a wide scope and heterogeneity. Legally binding stipulations and declarations as well as arrangements of moral value without legal enforceability are usually agreed in this protocol. These function do act as non-binding "codes of conduct" or "gentleman's agreements". 3 - Legal effectiveness of the family protocol The legal effectiveness of the FAMILY Protocol is one of the aspects presenting headaches; and this arises when company agreements are not implemented or executed by the companies concerned or, where appropriate, by their inclusion in the articles of association. In the latter case, the conflict merges out of the existence of two contradictory sets of rules arising from the statutes (or from the supplementary legal provisions in the absence of a specific provision in the statutes) and among such company agreements that have been established but not transferred to the company's statutes, although in principle both are valid in principle. 4 - Ideas for the proper implementation of social pacts and family protocols The aforementioned magistrate gives some helpful ideas for an accurate execution of these agreements or protocols. Here are some highlights: The family protocol should be a framework agreement. Thus, it is necessary to give it an effective virtuosity through the appropriate execution of its provisions. These business or execution documents can be family (e.g. marriage contracts), succession (wills or inheritance contracts) or corporate (amendments to the articles of association). Setting up an obligation to comply with the family protocol ancillary is one of the measures we are already implementing in our assessments. In this way, the breach is sanctioned with the exclusion of the offending partner. Giving an "ad extra" effect through a notice in the commercial register. 5 - What happens if the partnership agreement or family protocol contradicts the articles of association? Unfortunately, this scenario becomes true more than enough times. In views of this contradiction, the Spanish Supreme Court states: when it comes to challenging a shareholders' agreement adopted by the shareholders' meeting or by the board of directors, the Spanish Supreme Court will reject the objection based on the violation of the provisions of a shareholders' agreement. In order to maintain the legal challenge, the breach of the shareholders' agreement must be accompanied by a simultaneous breach of the law, of the shareholders' agreement, or by a violation of the interests of the company in favour of one or more shareholders or third parties. However, there are also exceptional cases where the resolution to be adopted in its various manifestations - own acts, lifting the veil - is contrary to good faith, or involves an abuse of rights. Apart from these cases (breaches of the requirements of good faith, abuse of rights), the effectiveness of the perfectly lawful shareholders' agreement can only be defended by an action between those who signed such agreements. In this case, the company cannot act as a party, as it is not a corporate action. Top important: if you believe that one of your shareholders (or as in this case, the children of your deceased shareholder) has breached a shareholders' agreement or the family minutes, we advise you to desist from challenging that shareholders' agreement, as a loss of the case with the associated costs could be the result; unless there is an abuse of rights or good faith. It is more appropriate in such cases to bring a claim for breach between the signatory parties without involving the company. 6 - Lasting, real or personal relationship Another important point of the doctrine that I would like to highlight today, and which the Magistrate also addresses, concerns the signing of those agreements that create obligations with our partners that are not limited in time. Attention! The Supreme Court scrutinises voting agreements between partners down to the smallest detail. In this sense, the Magistrate explains the prohibition on the indisputability of permanent links in our civil law, regardless of whether they are real or personal. Subsequently, the validity of permanent syndicate contracts cannot be recognised as they do violate the principle of freedom of contract and personal and property disposition, which are general principles. 7 - Family protocol and commercial company contract; features that are different, but interrelated The Supreme Court concludes that the family protocol and the commercial corporate contract operate on different but interrelated levels. Thus, the latter, which is reflected in the company agreement, is subject to the mandatory rules of company law. Shareholders' agreements are valid and lawful as long as they do not violate the law, morality or public order. We consider this topic as absolutely interesting. Our assessments will continue with further publications on PARTNERSHIP AGREEMENTS AND FAMILY PROTOCOLS. In the meantime, our Legal Department will be pleased to answer any questions you may have in this context. Feel free to reach out for us!

Finally, we can say that small and medium-sized companies are equal to large and MACRO companies. In fact, from now on and in 2022, COMPANIES WITH 50 EMPLOYEES will be obliged to draw up an EQUALITY PLAN. This obligation comes from the Royal Decree 6/2019, which we already highlighted in our post: Approved the Royal Decree-Law on equality in employment. Here are some tips that allow you taking on this challenge without losing sight of your bottom line... Tips for the development of an Equality Plan The Equality Plan is a set of measures, adopted after carrying out a diagnosis of the situation, aimed at achieving equal treatment and opportunities between women and men in the company and eliminating discrimination based on gender. Companies currently obliged to implement the Equality Plan: Companies with more than 150 workers. Or companies that are called small and medium-sized companies, SMEs, with a turnover of around 10 million euros. Advantages of undertaking these plans: Compliance with the law to AVOID sanctions. Obtain the equality DISTINCTIVE. Start walking on the path of Corporate Social Responsibility of your company. Reach a consensus with your team on the EMOTIONAL WAGE. Phases of the Equality Plan to be fulfilled 1 - Equality Committee It is recommended that the equality commission is composed of people with decision-making capacity within the company. Contribution to the elaboration, development and monitoring of the Equality Plan will be among their competence. 2 - Diagnosis The diagnosis consists of the quantitative and qualitative study of the company's situation through the exhaustive collection of data on the workforce and the company's personnel and employment policies, as well as the subsequent analysis and publication of these data. 3 - Salary Audit This is information relating to the salary of a company's employees. It has the objective of identifying wage gaps and implementing measures to alleviate these possible differences. 4 - Implementation Establish proposals and measures that lead the company, staff, employees and management team to integrate as their own, so that the company flows in equal opportunities for reasons of gender. 5 - Control, Monitoring and success of the Equality Plan Last but not least, it will be necessary to check if the planned actions have been carried out within the timetable, if the infrastructure is adequate, or if it is adjusted to the established budget, or the degree of satisfaction of the target people, among other questions. Take our advice: an Equality Plan or any other business protocol kept in a legal drawer and which does not report anything to the teams, is useless. In short, with this POST we invite you to do 2 things: Download from our website www.carrilloasesores.com the free EBOOK that we have prepared for you so that you can start your own Equality Plan. Otherwise, if you don't know, don't want to, or don't have time for it, you can contact our CONSULTING team and we will arrange this for you, by your side, and accompanying you in this stage of business OPPORTUNITIES. Reach out for us at info@carrilloasesores.com with the SUBJECT < Equality Plan > and don't worry about the rest. Under the assumptions that the options given do not satisfy your needs, then you can always dial our phone number +34 968 24 22 58. We will be delighted to support you, whatever your queries may be.

If you perform sales to final consumers of goods in the EEC, you should be aware that from July 1st, 2021 you will be affected by this change in the VAT rules for distance sales within the EEC. Change in the VAT rules for Distance Selling within the EEC From July 1st, 2021 onwards and as a result of the approval of RDL 7/2021 of April 27th, if your company makes deliveries of goods in which it is directly or indirectly responsible for transport to the final consumer, i.e. from Spain to a member state of the EEC, (or from one member state to the customer’s address of another member state), then the operative will be subject to the new rules of accrual and charging of VAT. These transactions are very common within online sales. Until now, those sales have been taxed in the State of Origin of the selling company (where the products sold are located), unless the threshold established for each EEC Member State is exceeded, in which case they are taxed at the VAT rate of the country of origin of the customer's domicile. For more information, you can read our post VAT on Internet sales or e-commerce. New VAT taxation regime for Distance Selling as of 1 July 2021 However, from 1st. of July 2021, a single threshold of €10,000 will be established for the whole EU, both for sales of goods and for the supply of services by electronic means, telecommunications, radio and television broadcasting. Therefore, if your company's sales exceed the EU-wide threshold (not on a state-by-state basis), the VAT taxation will become that of the place of destination of the goods. In other words, the VAT of the customer's country of domicile. One-stop shop In order to simplify the old distance sales regime (in force until the end of June 2021) and in accordance with the new limit, the Tax Agency has set up a system called "One-Stop-Shop". Through this system, the entrepreneur will be able to submit and settle the VAT due on all transactions involving the sale of goods to final consumers in the EEC. This will be done in a single declaration. Subsequently, the tax authorities will be responsible for transferring the VAT collected to each country. If you have already been carrying out transactions with final consumers in the EEC, you will have to: Determine whether you have exceeded this amount both in the current year and in 2020. Register in this new "One Stop Shop" system during the month of June 2021. Make quarterly VAT payments and accruals in each country where you sell through a single tax form for all countries. Form 369 applies. Within our Tax Consultancy Department at Carrillo Asesores, we have set up a new department to handle, process and advise you on Distance Selling, register and manage the new VAT payment form. If you need more information, do not hesitate to call us. Check with a simple click if you are affected by the new e-commerce VAT regulations: E-COMMERCE SALES VAT TEST

It’s been in June 2021, when Google, as the owner of YouTube, has started to apply withholding taxes to youtubers who are not resident in the United States. This is important for the tax planning of these content creators, especially when it comes to handle relevant amounts. Withholding taxes on non-resident youtubers in the United States Chapter 3 of the US Internal Revenue Code stipulates that a 30% tax rate will normally be applied to income paid to non-residents generated in the United States. Based on that, and according to the terms that you can read on Google's own US tax requirements on YouTube revenue, we quote verbatim: "In June 2021, we may begin applying US withholding taxes to your channel's revenue from US users. Please submit your US tax information through AdSense as soon as possible. If you have not provided us with this information by May 31, 2021 (inclusive), we may be required to apply a 24% withholding tax on your total worldwide earnings." Tell the U.S. that you are a non-resident: Form W-8 Basically, if you do not declare anything, then Google considers you a US resident. However, there is a simple way to tell the American authorities that someone is a resident of another country, by means of a W-8 form. These forms include several models such as W-8BEN, W-8BEN-E, and W-8ECI... where, the creator will indicate in which country he/she is a resident. Normally, if there is a double taxation agreement between the United States and that country, the rate of 24% is reduced (depending on the country, even to 0%). In addition, the mechanisms provided for eliminating double taxation can then be applied. These W-8 forms are the same as those used by international brokers such as Degiro, Interactive Brokers, etc., which in these cases are mainly used for withholding taxes on dividends from American companies. Normally, despite appearances (lots of text and small font size) these forms are easy to fill in. Doing so can avoid over-taxation and subsequent tax problems. An example of a W-8BEN form can be seen below: Withholding taxes for youtubers resident in countries without double taxation treaties A paradoxical situation may arise if the taxpayer reports that he is resident in a country with which there is no double taxation agreement with the United States; hence the withholding tax becomes 30% without the possibility of recovering it later on in the tax return filed by the taxpayer in his country of residence. It is therefore advisable to analyse this circumstance carefully before deciding to change residence to another country that is fiscally more attractive a priori, such as Andorra, in addition to other aspects that we already mentioned in our post in spanish on the taxation of youtubers in Andorra. What is clear is that tax planning is becoming increasingly important when it comes to minimising the tax bill. If you are a youtuber and you earn income from the United States, reach out for us. Our Tax Department will be delighted to support you.

This agreement enables companies with larger losses to require reductions in ICO credits of up to 75%. The Council of Ministers of 11/5/2021, reached an agreement between the Government and financial institutions approving the "Code of Good Practices for the renegotiation framework for customers with guaranteed financing provided for in Royal Decree-Law 5/2021", to support business solvency in response to the COVID-19 pandemic. To do so, banks will have to adhere to this new agreement reached on a voluntary basis. For this reason, only certain financial institutions that have granted ICO loans may be included, as this measure will also involve an effort on the part of the financial institutions granting the financing. They will assume a write-off for the proportional part of the loan that is not guaranteed. In any case, a period of one month is granted to take the decision, which will be made public and they will have to inform their clients of this circumstance. Measures agreed between the Government and Financial Institutions with respect to the Code of Good Practices and ICO loans Some of the measures agreed are: 1) Transforming ICO credits into direct aid to companies This new line offering the restructuring of financial debt with a State guarantee is provided with an amount of 3,000 million euros. With regard to the write-off of the ICO credits granted, the reduction may be: 50% of the outstanding guaranteed principal of each operation, if the company’s decrease of turnovers or self-employed person in 2020 was less than 70%. Up to 75% of the guaranteed amount if the drop in turnover in 2020 exceeded a percentage of 70%. However, the financial institutions will have to assume the proportional part of the loan reduction, and the payment of the transfers will be made by order of entry, being limited to the exhaust of the funds established for each of the bodies that have granted guaranteed loans: 2,750 million euros for guarantees managed by ICO (Institute of Official Credit). 100 million for CESCE (Spanish Insurance and Export Credit Company) guarantees. 150 million for guarantees managed by CERSA (Spanish Counter-Guarantee Company). 2) Extension of the maturity of ICO loans with public guarantees This measure pretends to give more flexibility on the repayment of debts generated during the crisis. The enlargement of a period of allowance of two years, at a first point and the extension for the repayment period to 10 years, as a second facility, are given. 3) Conversion of debt into equity loans Finally, the possibility of converting guaranteed loans into equity loans, subject to an agreement between the financial institution and the company, while maintaining the coverage of the public guarantee, is feasible. This measure was requested by business associations to help strengthen the beneficiary companies' equity, as these loans are treated as equivalent to capital for commercial purposes. How can a company benefit from these measures? In order to take advantage from these 3 measures, the company must have had a drop in turnover of 30% in 2020. Moreover, the profit and loss account for 2020 must show a negative result after tax. In addition to these requirements, the company must not be in delay in any of the financing subscribed with the financial entity and it must not be included in any insolvency proceedings. In fact, the Executive has clearly shown its intention to help those companies facing greatest difficulties in this health crisis. However, all of this is subject to and controlled by the financial institutions. They will have to join this agreement so as to allow the proposed ICO loan reductions taking place. Got a question? Our team at Carrillo Asesores will be happy to advise you. Feel free to ask for more information.

Too often, we attend clients having registered trademarks, patents or industrial designs, who detect that certain retailers are selling products that imitate or copy the protected products. Independently to the fact that we can require the retailer to stop offering these infringing products, we know that the real problem starts at the source of the infringing product, i.e. the manufacturer of the copies or imitations, and the person who introduces them into the market. Intellectual property rights, infringement by foreign companies The problem usually starts when we find out who is behind the scenes: too often, we find foreign companies, not domiciled in Spain. This implies an impossibility to request the intervention of the Spanish courts, given that, as stated in article 51.2 LEC, legal persons will be sued in the place of their domicile, or in the place where the legal relationship is to take effect, provided that they have a place of business open to the public, or a representative authorised to act on behalf of the entity. Indeed, paragraphs 11 and 12 of article 52 LEC, include special forums in the field of industrial property and unfair competition. This allows the filing of a lawsuit even when there is not even an establishment open to the public in Spain. However, even in this case, the enforcement phase would be useless due to the lack of jurisdiction of our courts in foreign countries. Nevertheless, we can prevent infringing products from continuing to enter the market. We will thus prevent manufacturers and importers from continuing to profit from the infringement. Customs authorities REGULATION (EU) No 608/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 12th of June 2013 on the surveillance and enforcement of intellectual property rights by customs authorities apply for this purpose. According to its article 1, this norm determines the conditions and procedures for action by customs authorities in relation to goods suspected of infringing an intellectual property right that are, or should be, under customs supervision or subject to customs control within the customs territory of the Union. Upon detection of counterfeiting and piracy on intellectual property rights by foreign companies, the following steps should be undertaken In fact, the Regulation monitoring the possibility of submitting a request to Customs applies. Once submitted, it will be sent to the other customs offices of member states informing them of the existence of industrial property rights that could be infringed. Subsequently, the inspection of consignments and containers likely to carry infringing products is reinforced among these administrative bodies. Article 3 of the Regulation provides these stipulations. Custom authorities will immediately inform the holder of the infringed industrial property rights upon detection of these jeopardizing products. The latter must state whether he/she requests the destruction of the product, within a frame of 10 days (extendable by a further period of 10 days). The cost of the destruction of the product shall be borne by the person who appears as the holder of the cargo. An agreement may be reached with the offender, as well. Such an agreement may allow the entry of the goods in return for sufficient financial compensation. (Article 21 of the Regulation). We are therefore faced with a means of pressure to prevent infringements of intellectual property rights from countries where we do not have jurisdiction to take action against the infringer. This method does not usually entail indemnity to compensate for the damage. However, it certainly will encourage infringers to desist from their attempts to take advantage of our clients' rights. We at Carrillo Asesores can help you to provide your intangible assets with wider protection. Our team specialised in Trademarks and Patents will be delighted to assist you, please do not hesitate to contact us.

On May 19th, 2021, Carrillo Asesores attended the APD Conference held in Valencia. One of the top presentations we would like to highlight today was titled just like the movie: "Sleeping with the enemy". We would like to thank JMR for his funny presentation, and on the other hand, we would like to share with you his desire to raise awareness; so today, we will tell you a little bit about CYBER-CRIME WARE. What is ransomware? Ransomware is a form of malware that is on the rise; it locks a user's files or devices and then demands an anonymous online payment to restore access. What happens if you pay the ransom for your data? A formal charge of belonging to a criminal organisation, as set out in article 570 bis of the Penal Code, considering that the criminals and those who collaborate with them by paying the ransom were an organised group with high technological preparation, where each one had a specific function and task, may be the consequence. We therefore strictly advise against such a payment. So what am I supposed to do? Stay calm, tell your security team what has happened and report it to the institutions in any case. Although statistics tell us that only 10% of cases are publicised, the growth of cybercrime is increasing by more than 480%. How many attacks are there in Spain? The official figure, according to the WEF, is that the threat of previous years in terms of turnover is 445 billion dollars. Moreover, the estimation is just the tip of the iceberg, because no one wants to face a cybersecurity communication crisis, although the best thing to do is always to stay calm and report the attack to the authorities, immediately. Real Cybercrime Case Just view the prominent example of the Marriot cyber-attack. In 2018 (still suffering the consequences today), where 500 million customers of the hotel group were revealed. For more than 4 years the ransomware was inside their system and stole the identities and data of their (best and most VIP) customers, and then encrypted not only their data, but threatened to publish those of their customers. Actually, the lawsuits rise to more than $13.000 M. As a result of the attack, the chain's shares dropped down by 5%, so prevention is mandatory. The solution and the problem IS undoubtedly on US, the people. We therefore recommend having an independent PASSWORD for each sector, cloud, email, data, and constructing it as a safe barrier. Your child's birthday and name are an easy attraction for a security breach. Let’s end with a warning. If you would not enter a dark street with a gang of thieves, then you should not enter a page that is not quite secure with a trivial 1234 password or use your credit card because you will offer a green light for being the person who is mugged. Our Consulting Department can help you with these and other issues, such as GDPR, the legal protection of your data...etc., related to the Internet. Reach out for us; we will be delighted to help you.

'Business growth in the post Covid era', is the tile of a conference recently maintained between Carrillo Asesores and the Mutual Guarantee Company Aválam. The speakers met at the headquarters of the Regional Confederation of Business Organisations (CROEM). The session was broadcasted by videoconference and mirrored on the need to take advantage of the current days of uncertainty to “invest and grow”. It is time to invest for growth. Summary of the talk about Business growth in a post-Covid era Mr. José María Albarracín, President of the employers' association CROEM, opened the talk. Encouraging companies to leave behind moments of hesitation about the pandemic situation and about "getting vaccinated”, -both real and figuratively- in order to move forward with growth, was Mr. Albarracin’s first milestone. Albarracín defined Carrillo Asesores as a "safe bet" and the Company Aválam as a strategic partner for business organisations and companies. Main advantages of the Holding Economist Antonio Pérez Madrid and Lawyer Soraya Martínez López, both pertaining to the team of Carrillo Asesores, highlighted the advantages of structuring business groups as holding companies. They named its main benefits as: Protecting both personal and business assets. Saving financing and tax costs. Providing the entrepreneur with tax and legal advantages. Pérez Madrid considered that only a professionalization of companies and their restructuring under the holding company formula would facilitate their stable and sustainable growth. Soraya Martínez López, head of the Extra-procedural Legal Department of Carrillo Asesores, exposed the constantly increasing number of "far-sighted entrepreneurs" who turn to consultancy before starting new activities or investing in real estate, while seeking for models to do so in a more efficient fiscal and legal way. Spreading risk through holding companies One of the great advantages of the holding structure is "risk diversification", the lawyer emphasized. This prevents the contingencies of one company from affecting the rest of the companies. It also makes it easier to provide liquidity through capital increases without affecting the equity of other group companies. Other advantages of holding companies The lawyer also highlighted other benefits of holding companies: The possibility of bringing in new partners in a specific activity. From a legal point of view, securing and facilitating business succession. Credit lines and guarantees for SMEs and self-employed professionals Luis Alonso Mármol, commercial director of Aválam, presented the various lines of credit and guarantees for investment in innovation, sustainability and digitalisation, as well as to provide liquidity to SMEs and the self-employed entrepreneurs affected by the economic impact caused by the healthcare crisis. The Aválam executive presented this mutual guarantee company as a non-profit financial institution subject to the supervision and control of the Bank of Spain. Its mission is to facilitate access to financing for SMEs and the self-employed. It achieves this by improving contracting conditions.

The crime of incitement to hatred / the fundamental right to freedom of expression. We are nowadays going through convulsed times and it is necessary to know how to measure our words in order not to commit any crime. Also the safeguard of our Democracy, allowing and exercising the right to freedom of expression is mandatory. Some people commonly call it respect. Freedom of expression Today we bring you a ruling that is not really a brand-new one, but one that was much debated in the current affairs circles at the end of 2020, when the Supreme Court determined that a member of the Spanish Congress could say certain expressions alluding to his freedom of expression, insofar as the requirements of the criminal offence were not met. Moreover, it brought up the 2016 Constitutional Court ruling that limited the punishment of freedom of expression. What is a crime of incitement to hatred? First of all, let us have a glance on the meaning of CRIME OF HATE, of art. 510.1. - The basic type punishes three criminal conducts: Encouraging, stirring up or inciting hatred, hostility, discrimination or violence against certain groups. Producing, elaborating or possessing with the aim of distributing, facilitating access, distribution, dissemination or sale to third parties, material inciting, directly or indirectly, hatred, hostility, discrimination or violence. Denial or enhancement favouring a climate of hatred, hostility, discrimination or violence. The LEGAL PROPERTY PROTECTED is the correct exercise of fundamental political rights, i.e. FREEDOM OF EXPRESSION (among them). What is the judicial function The JUDICIAL FUNCTION will therefore be to assess, on a case-by-case basis, the ideas expressed, the circumstances, the legitimate exercise of that right, or its misuse, and the protection of the dignity of the persons to whom they refer. Therefore, in each case it will be necessary to study whether or not the right to freedom is violated, or whether it transcends the criminal sphere. Finally yet importantly, we would like to conclude with the literal text of the Supreme Court when its ruling states: According to our previous report, "the existence of this danger depends both on the content of what is disseminated and on the way in which it is disseminated, without overlooking the society or social sphere to which the questioned expressions are addressed”. It is not a question of requiring the concurrence of a context of crisis in which legal assets were already in danger, additionally increased by the questioned conduct, but of examining the potential of the conduct to create danger, and in today's Spanish society - more than 80 years after the events - there is already a clear reject of it". We should not punish Democracy with new crimes, but respect other people's ideas. That is why we call for consensus and social peace, in spite of the current circumstances. In fact, the law is there to be complied with, as the Anglo-Saxons A.D. used to say "rule of law". Let us learn to differentiate between rights and crimes, Carrillo Asesores. Insights.

Tax in Spain for non-resident and resident If you are not a Spaniard but you are in Spain, whether it is because you live here or because you are in Spain for a while, or you have some property in Spain, you have obligations with the Spanish tax agency that you should know about. In order to simplify and so that you can be aware of the due dates and the tax obligations you have, we are going to distinguish between tax obligations if you are a resident or if you are a non-resident in Spain (i.e. resident in another country). Before that, we can say a person is a Spanish resident when any of the following circumstances apply: He or she stays in Spanish territory more than 183 days within the calendar year. The core of his or her economic interests is in Spain (directly or indirectly) or if the husband or wife and minor children that depend on that person live in Spain. Tax in Spain for Spanish resident Therefore, if you are a Spanish resident, the obligations for each tax will be the next ones: Income Tax The taxpayer has to file an income tax return in Spain if he or she is a resident during the corresponding tax year. Therefore, you must declare all your income worldwide. Depending on the double tax agreement between Spain and the other country where the taxpayer has obtained some income (wages, rents, interests…), he or she might be able to deduct the amount paid in the third country for a similar tax. Property tax If the minimum taxable threshold is exceeded (it depends on the autonomous region in Spain, but it is usually €700.000, not including the usual residence), the resident has to pay property tax in Spain for all his or her property, regardless where they are located. Depending on the double tax agreement between Spain and the third country, similar taxes paid in that country could be deducted in Spain, and vice versa, depending on the country where the taxpayer lives. Furthermore, some property might be non-taxable. Statement of property located in a foreign country (model 720) There is an informative obligation (without having to pay taxes) for Spanish residents to inform about their property outside Spain provided that, for all property and rights in the following sections, the balance or value on December 31st is over €50.000, or if it is a deposit, the average balance of the previous trimester is over €50.000: a) Bank accounts at financial institutions located in a foreign country. b) Shares or rights of any company located in a foreign country c) Loans, bonds… d) Patrimony assigned in a foreign country to any legal instrument for its management or administration, including trusts e) Shares of collective investment institutions located in a foreign country f) Life and disability insurances when the insurance company is located in a foreign country. g) Real estate and rights on real estate located in a foreign country. The statement has to be filed only once, for each group of property and rights above, except if a year later, the balance increases in over €20.000 regarding the latest balance declared. The due date to file this declaration is from January 1st to March 31st each year, for the data of the previous year. Tax in Spain for Non-resident in Spain So, if you are a non-resident in Spain, you should bear in mind that: If the taxpayer does not meet Spain resident´s criteria and is, therefore, a resident in another country, income earned in Spain could be subject to taxes in Spain (depending on the double tax agreement) whether by means of withholdings or non-resident tax. Income Tax Like in the previous case, depending on the double tax agreement, the amount paid in Spanish non-resident income tax could be deducted in the income tax of the other country. Each kind of income has a different due date for its corresponding non-resident tax. -Incomes from a real estate sale: You must declare the non-resident income tax, within the following three months after the first month after the sale. For example, in a sale on February 1st, the tax will have to be paid from March 1st to May 31st. If the purchaser withholds an amount, this could be deducted. -Attributed income from real estate located in Spain: The calendar year following December 31st of the corresponding tax year. For example, for attributed income from real estate in tax year 2016, tax can be paid until December 31st 2017. Other incomes (wages, pensions, rents…) The due date for non-resident tax will be the first twenty calendar days of April, July, October and January for incomes that are due in the previous trimester. For example, for a rent due in the first trimester, the non-resident income tax must be paid until April 20th. The exception to those rules would be: If the result of the tax return is zero, the due date will be from January 1st to January 20th of the year after the due rent If the tax result is favorable to the taxpayer, the due date is from February 1st of the year after the due rent, within four years. Property tax If the minimum taxable threshold is exceeded (it depends on the autonomous region in Spain, but it is usually €700.000, not including the usual residence), non-resident people must file property tax over their property located in Spain. In all cases, the double tax agreement between Spain and the other country has to be studied, to know if there is some non-taxable property and avoid double taxation.

Income tax return for non-residents regarding real estate transactions There is no doubt that Spain is one of the most attractive tourist destinations to travel (75 million visitors in 2016, a historical record) and that many of the people who come decide to stay, or they decide to buy real estate here, even though they are still residents in their own country, in order to enjoy the cultural, gastronomic and social wonders that Spain has to offer to those who want to spend a few days. It is convenient to know that since the moment you decide to be the owner of a real estate in Spain, even if you do not live in Spain, you have certain Spanish tax obligations regarding your tax return, of which people are usually unaware. You also have to be careful, since in most cases the deadline for these taxes is not the same as the one for the income tax return for residents in Spain. This can create confusion and “unpleasant” situations with the Spanish Tax Agency, such as delays for which you have to pay surcharges. When a non-resident owns real estate, two different situations are possible: – The non-resident person rents the purchased property, which produces a recurrent income. In this case, this rent income has to be declared on a three-monthly basis and an income tax return for non-residents has to be filed in the corresponding terms. – The non-resident person does not rent the real estate, since it is used for personal use (holidays, bank holidays, etc.). In this case, as it is not a usual residence, just the same as in the income tax return, you have to add a % of the assessed value and file the corresponding income tax return for non-residents on a yearly basis. As you can see, regarding the Spanish Tax Agency, the fact of being a non-resident does not exempt you from certain tax obligations if you own a property in Spain. If these obligations are not met, the person could be subject to audits by the Tax Agency, which could lead to sanctions and fines. Income Tax for non resident selling a property in Spain Regarding real estate owned by non-residents, another possibility is that it is sold. This sale, just as when the transaction is between residents, will yield income or loss (depending on the purchase price and the selling price). The Tax Agency also requires you to declare that income coming from the sale and to pay taxes on it in case of profit. To pay this income tax for non-residents you have three months after a month from the date of sale of the property. As you can imagine, not doing so can lead to audits and/or sanctions by the Spanish Tax Agency. Depending on the double taxation agreements signed by Spain and the corresponding country, these amounts paid as income tax for non-residents could later be deducted, to a greater or a lesser extent, in the income tax return in the country of residence based on the corresponding tax criteria. In conclusion, ignorance of the law is no excuse for not obeying it, but it is better to know it and avoid unnecessary trouble. We can be helpful if you have any hesitation about Spanish income tax statement for non-residents.

Radio Sureste Cope interviewed our colleague Antonio Juan Pérez-Madrid recently; they talked about one of the topics that currently raises a lot of headaches: THE INCOME TAX RETURN. The Income Tax Campaign started on the 7th day of April and it will last until June 30th, 2021. Antonio brought news regarding the filing of the tax return. Those who have decided not to arrange this pursuit electronically now, have two options: by telephone or in person. Options for filing the Income Tax Return 2021 Plan 1- By telephone: "We'll give you a call" A brand-new stage in the Income Tax Return scenario just started, as the Tax Agency opened the period for requesting an appointment to file declarations over the phone, with an official from the agency. Through the Plan “We’ll give you a call”, taxpayers can perform their tax returns with the Tax Office and have them filed. This new Plan maintains the reinforcement of its capacity provided in 2020 as a result of the pandemic situation. It is a new way of attending the same profile of taxpayers as previously with the traditional face-to-face service. The service is also offered to new Collectives, but now the applicants do not have to be present at the Tax Agency. In order to enable this procedure by telephone, it is necessary to make an appointment, available from 4th May until 29th June, which can be requested via website (by identification with electronic ID, Cl@ve, digital certificate or reference number), on the Tax Agency's App or by calling 901121224, 915357326, 901223344 and 915530071. Once the taxpayer requests an appointment, the system proposes a day and time when the taxpayer will receive a call from the Agency official. The telephone declarations commenced on May 6th, this was the day when the Inland Revenue started calling applicants. Several documents must be available to enable going ahead with the performance: Reference number. ID number (DNI) with its date of validity. Field 505 of the 2019 tax return. In the event of not having filed the tax return for the previous year, the last 4 digits of the applicant's current account will be requested. Plan 2 - In person Similarly, there is also the option of going to the Tax Agency, where the necessary questions before filing the tax return can be resolved. For this “In-person” option, the procedure will be carried out between 2nd and 30th of June, and it is also necessary to make an appointment between 27th May until 29th June. These appointments can be made in the same way as by telephone, through the website (by identification with electronic ID card, Cl@ve, digital certificate or reference number), on the Tax Agency's App or by calling 901 22 33 44 and 91 553 00 71. Several questions were answered during the interview, such as: Could I make a draft of the income tax return, to check if the results come out as a refund or to pay, and can I refuse to submit the declaration? Through the Tax Agency's website, you can indeed make this draft, review the appropriate data, and if you are not obliged to do so, then it would not be filed. But if you are obliged to declare, regardless of the result (positive, zero or negative), filing will be compulsory. What are the reasons for a tax refund? Initially, this happens when you had an excess of withholdings. There are also specific cases in which this result would occur, such as in the case of disability of a child or large family. What about those Taxpayers who have to pay up? It is the contrary to the previous case and occurs when the withholdings have been minimal. Furthermore, in the case of the sale of a property and the sale of shares on which no withholdings are made, the result would be liable for payment. Am I obliged to file a tax return if I sold my house last year? In 99.99% of cases where there is a sale of a property, the tax authorities oblige to file a tax return, and you would become liable for payment if you obtained capital gains. What happens if I refuse to file my tax return? You will be penalised. You would have to pay the established amount plus the interest generated, plus the corresponding penalty. Does this tax year include an important new feature for certain groups? Yes, such is the case of recipients of the Minimum Vital Income (IMV) and those affected by “ERTE” (Temporary Unemployment Support), who must file a tax return. In fact, in addition to the informative letters sent to both groups and the countless indications for these specific recipients, in the case of “ERTE” benefit recipients, the information available in the tax data is improved as the Tax Agency receives the updated data from the Public Employment Service. If you still have doubts about the Income Tax Return, get in touch with us. We at Carrillo Asesores will be delighted to help you.