Profits from the sale of a non-resident's residence in Spain are taxable exclusively in Spain (BFH IX R 37/16 of 27 June 2017, published on 19 October 2017)

In literature and jurisprudence, it has long been disputed whether the profit from the sale of a holiday property in Spain to a non-resident is taxable not only in Spain, but also in Germany. The corresponding section 23 of the German Income Tax Act (EStG) was predominantly interpreted in such a way that the profits were taxable exclusively in Spain. In contrast, the Finanzgericht Köln (Fiscal court Köln), which, by judgment of 18 October 2016 - 8 K 3825/11 (EFG 2017, 222), argued that such profits were taxable both in Spain and in Germany and tax-exempt in Germany only after 10 years. A horror show that would have made the acquisition of a foreign real estate uninteresting for many. The Bundesfinanzhof (BFH) has passed judgment in Cologne regarding the above-mentioned decision and clarified that the profit of a property used solely by the owner (i.e not rented) is taxable only in Spain. In Spain, a "flat rate" of 19% applies to non-resident taxpayers on the profit.

Calvia presents a new plan for declassification of building land - green vision or a breach of the law?

Calvia town hall has presented a new zoning plan (PGOU), which at first sight contains a lot of positive things: 86 hectares of building land are to be declassified so that they can no longer be built upon in the future. Four large parks with a total area of 1 million m² are to be created in Magaluf, Illetes, Santa Ponsa and Son Ferrer. On a section of the motorway at the height of Portals Nous / Costa d 'en Blanes a tunnel will be built, which will serve to reduce noise pollution and alleviate the amount of traffic on the motorway, therefore making it more esthetically pleasing for residents. The plans are still not published, so it is not possible to assess the extent to which damages are to be paid to the property owners. Jaume Carbonero, who is retiring in a few months and who wants to enter the annals of Calvia as a green visionary, is responsible for the plan. However, according to expert opinion, he only has his vision in mind and is consciously aware that claims in the millions for damages against the Calvia town hall will be made.

An example of numerous and flagrant legal violations committed by the department headed by Carbonero, is the special plan for the Son Font urbanization. Carbonero, exceeding the responsibilities of the town hall authorities, and at the same time breaching various building regulations, is aiming to reduce the potential development in the future on a plot of 4,000 m², only houses of 150 m² can be built, which up until now 250 m²). The construction of pools is to be completely forbidden and for a period a of two years a general building freeze is to be put in place. The life’s dreams of many owners are facing disaster. Approximately 100 owners have already filed appeals using experienced lawyers and are claiming damages in the millions. M & P - newsletter will continue to report. And what does Calvia's mayor say: he has ignored invitations to citizens meetings. Either he lacks the expertise or he is afraid of his citizens and voters. Both are equally disastrous. Mayor, Alfonso Rodriguez Badal, allows Carbonero to get on with it. It's not easy to be everybody's darling. Hopefully in 18 months there will be elections!