Live News From Spain As It Happens

LANDLORDS may be able to offset between 70% and 90% of rental income against their annual tax declarations if their tenants are young adults or from 'vulnerable communities', according to the planned new housing law.

Rental property newly on the market in areas considered 'critical' – where prices are high and those in the 18-35 age bracket are struggling to afford to leave the parental home – could attract reductions of around 70% in income tax paid on the funds received by the owners.

At present, landlords are able to offset a flat rate of 60%, but this will change to a sliding scale ranging from 50% to 90%.

Where landlords offer rental prices at least 5% lower than in the previous year, and in areas with high demand, low affordability and low supply, they can claim back up to 90% of the tax they pay on what they earn from the tenancy.

In all cases, renting to those aged 18 to 35 will come with a tax break of 70% - which applies whether the property is owned by a private landlord, a public body such as a local council's housing department, or a non-profit organisation investing in low-cost rental homes.

For the latter, the rent would need to be below the State housing help scheme level.

The 70% tax reduction also applies to those who rent homes to tenants considered 'vulnerable', which could include people with life-limiting disabilities, gender violence survivors, the elderly, or those on very low incomes.

Properties rented out which have undergone renovations in the last two years will attract a 60% reduction in income tax for the owners.

These greater tax incentives will not apply to landlords who ask for deposits from new tenants that exceed one month's rent.

The tax breaks will apply from January 1, 2024, meaning landlords will start to see the benefit of them from their annual tax returns filed in spring 2025.

According to the central government's housing department, the aim is to encourage landlords to offer more affordable rent – especially in sought-after areas and big cities where prices are often prohibitive for young adults or those on an average wage.

Whilst research has shown that it remains cheaper to buy with a mortgage than to rent in almost every province in Spain, first-time buyers continue to struggle to gain a foothold on the property ladder due to high deposits required.

Read more at thinkSPAIN.com

EXTRA testing criteria will be included in compulsory vehicle inspections from May 20 this year, although not everyone's cars will be affected.

Private and commercial vehicles are required to undergo a 'technical inspection', or ITV, in Spain – for cars, this becomes mandatory once they are four years old, and takes place every two years.

This is also necessary for those newer than four years old which have been used as hire vehicles or courtesy cars.

Once the car is 10 years old, ITV tests are needed annually.

Driving with an out-of-date ITV, or after the vehicle has failed and not yet been retested, is against the law – as is failing to display a valid ITV sticker (as shown in picture three) on the windscreen.

The ITV procedures handbook is regularly updated, often with new elements to be tested added in – and the latest version comes into effect next month.

Two new criteria are present in the new version 7.7.0., but will not affect all vehicles, and do not require any extra action or cost to the owner.

Only for newer cars

The first of these is the requirement for ITV testing centres to check the eCall system is working properly.

This system was made compulsory for all cars newly registered from 2018 onwards, and is thought to have significantly cut the number of road deaths, since it is designed to send an automatic emergency service alert in the event of a crash.

Owners whose cars have an eCall system are expected to have these checked periodically in any case, so its inclusion in ITV tests now means not having to worry about arranging to do so unless they want to have it examined more than once every two years.

Cars registered in 2017 or earlier do not have an eCall system as standard, so the new rules will not affect them.

The second change relates to the On-Board Fuel Consumption Meter (OBFCM), but is not a 'test' as such.

Instead, ITV stations will be required to collate anonymous data on how much fuel cars use, and covers petrol or diesel vehicles as well as electric, hybrid and hydrogen.

These data are found in the on-board diagnostics system serial port.

Read more at thinkSPAIN.com

WE'VE only just finished our Easter holidays, and already there's another key date waiting for us.

Today - Tuesday, April 11 – is, if you live in Spain, the start of Declaración de la Renta season, which concludes on the last working day in June.

Basically, that's our annual personal income tax declarations, and which can be either a source of dread or excitement, depending upon your situation.

If you've overpaid in the calendar year of 2022, you'll be due something back, but if you've underpaid, you'll need to hand over the difference.

For those fortunate enough to be in the first category, the State tax office, Hacienda, has until December 31 to pay it to you without adding on any interest.

This effectively means that any tax you overpaid in the year 2022 does not legally have to be refunded to you until the day before 2024 starts, and interest-free, which can be frustrating.

But the good news is that Hacienda does not normally stretch it out that long, especially if you get your declaration in early – sometimes, taxpayers get their rebates before May is out.

For those who need to pay to make up a shortfall, you would typically be expected to settle it in a lump sum before the end of June, but as long as you apply to do so before the close of 'declaration window', you can arrange to stagger it in several quotas.

Who is required to make a Declaración de la Renta

Annual tax declarations, in Spain, are not just for the self-employed. Almost everyone has to file one, even if they are retired or their income is from non-work-related activities – but there are some exceptions.

You should always seek professional advice if you suspect you may be exempt, since you could be fined if it turns out you should have made a declaration and failed to do so.

In general, tax residents in Spain who do not have to make an annual declaration are those whose income for the whole of the previous calendar year was from just one source, and was less than €22,000 in total.

Read more at thinkSPAIN.com

NO DOUBT you will have heard about Spain's world-famous Easter parades, of which the main and most moving is on Good Friday – and perhaps you've always wanted to see one in action.

It's definitely a bucket-list entry, highly unusual and, given the noisy and colourful reputation of Spanish fiestas in general, will show you a whole new side to these: Mainly because it's totally the opposite.

You don't need to be a follower of the Christian faith – or, indeed, any faith at all – to be spellbound by the evening parades, wrecked by the tragedy of the story they pay tribute to, and gripped by the intensity of those taking part (some members are even atheists, which shows just how universal they are). But it's a good idea to find out more about them first, so you can get the best out of your spectator experience - take a look at our article here for a full guide.

If you can't get to Spain in time to watch them in person, check out some of the best televised Good Friday parades, and maybe you can plan your trip next year to one of the locations mentioned.

Why Spain's Easter parades are unusual

For those with no pre-conceived ideas at all, you might be a bit taken aback by the dramatic and somewhat terrifying costumes. Gowns covering the entire body, each troop in a different colour, with their faces totally obscured by a cloth – only eye-holes, so they can see where they're going – attached to long, narrow, pointed hats, are actually not as sinister as they appear. The wearers are depicting penitents, atoning for their sins, their faces covered to denote their shame.

To the untrained eye, they look eerily like the uniform of the US Civil War-era underground organisation known as the Ku Klux Klan, a far-right group founded in opposition to the mass freeing of slaves. But before you ask any Spaniard why their Easter parades 'copy' the KKK's dress (they actually don't), read our article here about the origins and significance of the procession outfits.

Finally, where in Spain should you go to see the Easter Week, or Semana Santa parades?

The answer is simple: Anywhere in the country. Practically all towns and even some smaller villages stage Semana Santa processions and activities, and although the southern city of Sevilla is famed for hosting the largest, it can get crowded and accommodation difficult to find – you may enjoy it more at a slightly smaller version where you can get a seat right on the pavement, almost within touching distance of the parade participants.

That said, many locations in Spain have their own, individual take on the event – and are handily placed for other sightseeing, too.

Our main tip, though, would be to check the weather forecast before setting off. When it rains, the parades are often cancelled, so you don't want to get all the way to your chosen destination and be cheated out of the chance to witness the celebrations.

San Cristóbal de la Laguna, Tenerife

One of the biggest and most splendid processions is in this Canary Island town, the whole of which is a UNESCO heritage site.

Whilst Good Friday is the main parade day anywhere in Spain, La Laguna – as it is more often called – is the place to be the day before. On Maundy Thursday every year, the image of the patron saint, Christ of La Laguna, is carried through the streets from the San Francisco church to the cathedral.

Tenerife itself, the largest island in the Canaries, is known for its stunning beaches – although it's only just April, the climate in this southern offshore region is springlike most of the year, rarely dropping below 14ºC in winter or rising above 30ºC in summer – and for its enormous, verdant Teide National Park, an active volcano where you can take a cable car to the top and walk into the crater.

La Laguna is worth a visit at any time of the year – read about its attractions here.

Pollença, Mallorca

A paradise of culture and nature, the biggest of the Balearic Islands is home to caves with underground lakes formed over millions of years, quaint and floral villages famed for being artists' colonies, stately architecture in its capital, Palma, and excellent shopping. 

Don't miss a trip to Deià, long-term home to World War I veteran and famous novelist Robert Graves – his daughter, Lucía, translated prolific author Carlos Ruiz Zafón's works into English – and where cafés and bars were frequented by painters and writers for decades.

Read more at thinkSPAIN.com