#EmbraceSpain XXXIII: Gibraltar is not Brexit bargaining chip
The authorities of Gibraltar claim Theresa May’s protection against a possible “interference”of Spain and the European Union in the Brexit negotiations.
UK political parties are tweaking their electoral machinery to prepare for the upcoming general election in June. The Tories and Labor have published their electoral programs. The Conservatives, in their manifesto, renounce to have the United Kingdom abandon the European Convention of Human Rights of the Council of Europe, in the face of strong criticism of this possible measure.
In addition, it seems clear that the new government will have to face a tax reform that simplifies the British tax model, as advocated by the Chartered Institution of Taxation (CIOT). At the moment, only chocolate and candy rates have been proposed, and in the real estate sector, a battery of right-to-buy plans for young people who want to buy a home have also been proposed.
On the other side of the Channel, the CJEU has declared the EU agreement with Singapore a mixed competition, complicating trade agreements with a UK post-Brexit. It is not the first Community “maneuver” in this sense, as we have highlighted in our article also the Gibraltar authorities have demanded more protection from the British government before the “interference” of Spain and the EU with respect to Brexit, an attitude that “could even intoxicate these negotiations between the rest of European partners but, above all, what this behavior does is to ignore the demands of the Gibraltarian people.“
In Spain, with regards taxes the Tax Office will soon approve the so-called Immediate Supply of Information on VAT and has also announced that it will recover up to 1 billion euros in fiscal aid granted to large companies since 2002, due to Brussels demand of Spain starting the process for the refund of deductions granted to Spanish companies for the purchase of other foreign companies.
The Constitutional Court has finally annulled the municipal goodwill if the property does not increase its value and has admitted the appeal that part of the opposition has registered against the floor clauses, as our lawyer Claudio Rodriguez Vera stated in his article: “With this decision, The Supreme Court provides legal security by guaranteeing each floor clause judicial process its independent consideration and judgment but, above all, it avoids the extra-judicial “filter” that the government approved in January so as not to collapse the courts and that damaged the case by case consideration, indispensable in the right exercise of the Law “.
Likewise, a study has been published which highlights that taxation of housing implies an increase of up to 25% in the final price of the property.
Taxes that revolve around housing are one of the main sources of income for the three Public Administrations: municipal, autonomous and state. These taxes, which are paid when a home is acquired, are the municipal capital gains, which include VAT, Property Transfer Tax (ITP), Tax on Documented Legal Acts (AJD) and other taxes as owner Of the property as the Property and Real Estate Tax (IBI) or the garbage rate.
Undoubtedly, we consider that the administrations are taxed with the taxes that directly affect the citizen, who in addition to undergoing the policies of cuts in social and health services, are also harmed when it comes to a first necessity property such as housing.
From Colombia, the country’s prosecutor’s office has signed a collaboration agreement with its Spanish counterpart, which strengthens the already existing between Spain and the Latin American countries. The Colombian economy benefits from an improvement of 4.8% of its industrial production, while expecting more investments from US multinationals. In the fiscal area, the government has regularized assets of nationals abroad in the amount of 1.428 billion dollars.
Finally, in Qatar, a week before Ramadan starts, non-oil exports have increased by 15.1% to € 1.23 billion in the first quarter of 2017 alone. This economic boom, common to all Gulf countries, is a combined GDP for this region of 1,500 billion euros. In the real estate market, Qatari investors are now focusing on the market offered by the United States, internationalizing their investments in a context in which the total volume of national real estate trade, only in May, already has a value of 100 million of dollars.
The European Union, with Spain as one of its members, and the UK have their social and legal-economic future for several decades at stake in the Brexit negotiation. The complexity is enormous and the uncertainty even greater. Faced with this situation, using Gibraltar as an argument to poison negotiating meetings that have not even begun would complicate an orderly exit from the EU and jeopardize cordial relations between London and other European partners in the future Europe Post-Brexit.
Xavier Nova (@xavinova)
Director of Del Canto Chambers