Tax & Accounting

Depending on the type of business you are buying, you will possibly be told “there are no accounts” or “we are on the accounting system whereby we do not have to keep accounts”

Quite simply this is not correct. There are two forms of accounting procedure here and despite what you may have been told it is a requirement that accounts are presented and any taxes due are paid.

This is irrespective of whether you are on the ‘modelos’ system where an overall calculation is made by the tax agency, taking various elements into account, or the direct system which is the one most people are more familiar with, income minus expenses equals profit.

In the pre-calculated option whereby the tax agency calculates the figures, you pay this at intervals throughout the year. So, in fact, whilst there may not be physical ‘books’ there is a proven record of what is paid.

To this end, the nub of the matter is whether or not the figures are available.

Self employed persons and partnerships follow a different tax regime to companies and the tax band is different between the two sectors.

IVA (VAT) however, is treated differently and is applicable from zero, unless your business has an activity where other IVA levels apply or indeed you are exempt from charging IVA because of different circumstances.

You are obliged to file personal tax declarations and for those self employed or in partnerships this is linked to the tax you have been paying quarterly throughout the year. For companies it is a different matter.

Suffice to say we will guide and help you to keep your house in order and help you to
understand why and when.