Julio Redacción

If our country is well valued for the management of talent, it is not for its own sake. But for the work of some big cities like Madrid, Bilbao, Barcelona or Zaragoza.

Automation has revealed the double edge of technology. It is true that it will endanger millions of jobs, but so is the value of the creativity and talent of many professionals.

While technological innovation automates certain jobs, the disconnect between skills required by companies and training received by future professionals seems to be moving away.

This is the great challenge facing most countries in the search for competitiveness. And their greater or lesser success depends on collaboration between institutions and employers.

The Global Talent Competitiveness Index, is produced annually by the Insead business school, the Adecco group and the Human Capital Institute innovation center.

Leading talent management countries

The valuation of talent as a major currency of the world labor market gives, as a result, a world ranking of the most competitive countries. Those who are more efficient at creating, capturing and managing talent.

In this list, Spain does not stand out among the countries in its environment for the development and retention of the best professionals. Unlike some of its capitals.

Our country appears in the position number 35 in the world, and 22 in Europe, of the GTCI 2017.

With the passage of time, Spain has not worsened. In fact, it advances a place with respect to the year 2016 in which it occupied the 36th position.

Although what is unique to the Spanish case is not the country as a whole. But the virtue of being able to place four cities among the most competitive.

Just as in order to become part of the talent elite, a prescription must be followed. Education systems adapted to the reality of employment, flexible working policies, labor mobility, entrepreneurship and a good relationship between employers and institutions.

The traditional families and the type of homes most usual no longer go hand in hand. The latest studies describe a diverse panorama with diverse real estate needs.

Spanish diversity of households is in tune with the changes in the global society, as we could read recently through the forecasts of the National Institute of Statistics (INE).

Today it is the social diversity, the new habits of consumption and the labor mobility that define the typology of housing that best suits each family.

This gives good account of the recent report ‘Tell me who you live with and I’ll tell you what your home is like. An X-ray of Spanish families homes’, prepared by the Línea Directa insurance company.

New and traditional families

Next to the homes of all the life, new types of familiar unit begin to gain weight.

People who live alone, whether singles or not, are gaining weight. In fact, they aim to become one of the major residential interest groups of the coming decades.

There are also abundant, well-off and childless couples (‘dinks’). Mostly professionals who postpone the decision to extend the family or who directly discourage it

Nor should we forget single-parent families with dependent children. A group still small but in constant growth.

Among the three types of units, couples with dependent children remain the most frequent despite weight loss at the population level.

Evolution of types of households

The last ‘Continuous Household Survey (ECH)‘, prepared in April 2016 by the INE, gives some glimpses of where the most common types of households are going.

In Spain, couples with children continue to represent the most common type of household, with 6.8 million family units (34% of the total).

However, they are now followed by singles with almost 4.6 million households (25%). And within a short distance the so-called ‘dinks’, couples with two wages and no children in charge that account for 21% of the total.

Finally we find single-parent families with 1.9 million households, which represent 8% of the total.

Typical housing typology

The characteristics of the house evolve proportionally to the types of families more frequent in each moment.

Among the family units with or without dependent children, different needs are detected.

The owners of a traditional home put in value those houses that have storage and swimming pool.

Couples without children (‘dinks’) opt for properties that have a gym in the building. A matter that prevail to have mascot at home. Being of the groups with less domestic animals.

At the level of housing measures there are also differential facts. In Spain, with an average size of 50 to 100 m2, the ‘singles’ bet on floors of 50 or less meters. While the average traditional family is interested in homes of more than 100 meters.

Property owned or for rent?

In the discussion between buying or renting, the Línea Directa report puts value on leasing among the new types of homes.

The percentage of single people and couples with no children is close to half of its members. Among the ‘dinks’ there are 45% of tenants and among the ‘singles’ 38%.

At the other end we find the traditional families. 17% of couples with dependent children live on rent.

A group that bets to take out a mortgage for the purchase of housing.

Balancing the new Catalan accounts will force a tax reform, especially in housing and heritage. Details of the future taxation of Catalonia that are beginning to be revealed.

What changes in Catalonia’s taxation of Catalonia will contribute 180 million to the autonomous coffers?

The need for an agreement in the approval of the Budget of the Generalitat for 2017 has forced the Catalan executive to work with measures that are loaded with controversy on tax issues.

The agreement seems to finally come in aspects like the elimination of some deductions and the increase of certain taxes. Changes that are expected to raise up to 180 million euros for regional coffers.

The three fundamental axes of the reform will modify: the autonomous section of the IRPF, the Taxes of Successions and Donations and the Tax on the Heritage.

Changes in Income Tax

One most commented measures will be the elimination of part of the deductions for housing purchase.

The change will make all those taxpayers with a tax base higher than 30,000 euros and who are over 32 years old, stop benefiting from the 1.5% residential deduction (included in the autonomous tax tranche).

Currently, all those taxpayers who purchased before July 2011 are entitled to this deduction. A total of 866,000 owners according to Renta 2014.

After the modification, up to 250,000 people who invested in a regular home will lose this right. Despite this, the autonomous deduction of 7.5% for purchases prior to 2011 and the state deduction of 7.5% if the house was bought before 2013 will be maintained.

Tourism and housing taxes

The so-called ‘tourist tax’ will also undergo modifications to control the proliferation of holiday accommodation.

A tax of up to 2.25 euros per night will be applied that will be paid by the rent management operator, whether or not the dwelling is regulated. Cruise passengers will also have to pay a tax for short stays that until now did not exist, at the rate of each traveler (0.65 euros for stays of less than 12 hours and 2.25 euros for superiors).

While the tax on empty apartments will set a minimum exemption from 350m2 with the aim of especially charging the homes in the hands of banks.

Tax burden on large fortunes

Catalonia will continue to count on a tax inspired by that of the Diputación Foral de Guipúzcoa on large fortunes. Increased its tax burden from 10% to 11% in the sale of real estate worth more than one million euros.

A tribute that is accompanied by one for sale of gold or aircraft and that goes from 4% to 5%.

Finally, there will be changes in the Tax on the Patrimony with a future Law of Fiscal and Financial Measures. The modification of this tax will only penalize non productive assets owned by companies and not from large fortunes.

A tax on housing, high-end vehicles or yachts will be taxed for properties, which until now could be deducted by Societies, Patrimony and even VAT, avoiding its taxation.

With less than two months to finish the year, the countdown begins for those who want to soften the invoice of the Income Tax 2016 thanks to housing.

With deficit targets still pending and who knows if a tax reform ahead, Spain faces a 2017 with a higher tax burden.

A year for which we will prepare and still gives us two months to balance personal finances. A few weeks in which to redress everything possible for the 2016 IRPF.

How can we take advantage of this countdown in our favor? To what extent can housing expenses be deducted?

Buying and rehab

The owners of a standard house since before 2013 can continue to enjoy their deduction on a maximum limit of 9,040 euros. With this the maximum amount to deduct remains at 1,356 euros per taxpayer.

The transmission of the habitual residence throughout 2016 supposes a patrimonial gain for the seller. In that case, the purchase of another home is advised to avoid having to pay for the sale. An operation that must be carried out in a maximum of two years, but that must be communicated to the Treasury.

Another aspect to take into account is the recent ruling for the return of the overpaid to the bank in mortgages with floor clauses. The beneficiaries of the usual housing deduction must declare it in ‘Renta 2016’.

In the same way, the aid received both for access to the first home and for the reform or rehabilitation of the usual home must be declared. A taxation that can be made in this next fiscal year, or split between Renta 2016 and the following three statements.

Tax relief for rent

Taxation in rental housing includes the figure of the lessor and the lessee.

The owner agrees to face, in advance, the maintenance costs of the house. If these surpass the rents received by the rent, part of the taxation can be deferred to the next year.

The concept of renting is another matter to keep in mind. It is more beneficial to lease the property to a natural person and as a dwelling. To market it as a professional office, the headquarters of a tourism company or housing makes it impossible to deduct 60% of the profit obtained.

Any tenant who signed the lease before 2015 may continue to deduct the rent, as a regular home.

If you do not change your home and renew the rental agreement with the homeowner, even if the monthly rent and the term of the agreement vary, the deduction may continue to apply.

Personal Circumstances in the Income Tax 2016

If we look for an age, the fiscal barrier of the equity gains would be in the 65 years.

Once that age is reached, the sale of a regular home is exempt in taxation for the surplus value obtained. Circumstance that affects both members of a couple if it is a property of profit.

The operation can be used for the constitution of an annuity within a period of six months for a maximum of 240,000 euros. Another way of avoiding the payment of the equity gain, especially interesting once the 70 years have passed.

Another interesting case is that of marriages under the property regime and the communities of goods or co-ownership. Given their separation or dissolution, it is appropriate to distribute equally to avoid that nobody should tax for a greater equity.

If the habitual residence serves to carry out an economic activity. As it happens to many self-employed, part of the expenses can be recovered. Entrepreneurs can deduct 20% of supplies (light and water) in addition to other common expenses related to the property (community of owners and some taxes).

Deductions for housing and heritage added to others that we will live.

Large ecommerce operators, such as Amazon and Alibaba, intensify their landing in our country, occupying central offices and large logistics spaces in Madrid and Barcelona.

Which country will have chosen Amazon and Alibaba to dominate the ecommerce of the southern Europe?

The sale of products through the Internet has revolutionized the commercial world, also in Spain.

And although in the latest statistics accounts 1.1% for sales, the supply of products does not stop expanding even reaching fresh food products.

Two of the big multinationals in this sector are Amazon and Alibaba. Giants who want to conquer southern Europe from Spain.

Both have announced their interest in strategically investing in our country and thus get a good part of a market that does not stop growing.

Madrid and Barcelona are waiting for you!

Amazon consolidates in Barcelona

After confirming in June the creation of a large logistics center in El Prat and inaugurating in September a store in the Eixample to cover ‘express’ orders, Amazon surprises with another investment in Catalonia.

A new space dedicated to logistics distribution in Castellbisbal that has already begun its operations.

This new center will serve to cover the shipments of Amazon Pantry services in both Spain and southern Europe. This innovative service facilitates the purchase of a wide range of products available in supermarkets to serve them on the same day.

The fact that Catalonia has a strategic location has been fundamental for the investment in this pre-existing 28,000 m2, which will complement the future center of the Prat with 60,000 m2.

With this new center dedicated to Amazon Pantry, Spain becomes the fifth country in the world to enjoy this service.

Alibaba announces its assault on Madrid

The apparent Chinese Amazon admits no comparisons with the American company. In the last fiscal year, the Asian giant came to multiply by 20 the benefit of Amazon or surpassing by far Wallmart.

In Alibaba they have been working intensively to introduce here their ‘market place’ and they not only buying, but also trading over 40 Spanish products.

Attracted by the interest of the Chinese customer for everything manufactured in our country, his arrival in Spain has not been expected.

The first Spanish office of Alibaba will open in Madrid in February 2017. Although the intention is that a year later, in 2018, also open in Barcelona.

With these delegations, Alibaba wants to get a large number of companies to reserve a space in its online shopping center, TMall. A way to enrich their offering products for sale in China.

The Spanish economy raises to 32 international position according the report ‘Doing Business’. A ranking that places our country ahead of Japan, Italy and Mexico in facilities for corporate business.

Economic reforms are beginning to bear fruit, repositioning Spain in the international panorama. This week has risen in the ranking of countries with the greatest terms for doing business.

The ranking is based on the report ‘Doing Business 2017’ conducted by the World Bank. An annual survey of a total of 190 countries that analyzes the ten most important parameters for business development.

Spain, which a year ago appeared in 33th position, ascends a position as a recognition of hiring simplifications and tax cuts.

Our country is now ranked No. 32 with a score of 75.73 points out of 100 and the recommendation to go on with reforms.

Do business in Spain

In our country, ‘Doing Business’ highlights important legislative reforms undertaken during the last year. A clear reference to the reduction in the payment of property taxes, vehicle registration, transfer of ownership and even on environment.

In turn, is positively assessed the implementation of two electronic processing systems: which allows direct settlement of contributions to Social Security and online processing of court cases in civil matters.

In terms of categories, Spain gets a good rate by solving insolvency proceedings (18th worldwide), the degree of enforcing contracts (29th), in protection of minority shareholders (32 °) and tax settlement (37º).

While uneven aspects must be improved, such as access to credit (62º), access to electricity supply (78th), opening a business (85th) or obtaining building permits (113th).

The World Bank also makes a specific point in labor matters, the labor market segmentation between permanent and temporary contracts. A subject that is exposed to a greater risk of employment loss to temporary male workers (6.2 points higher than fixed) and women (7.3 points more than their fixed companions).

‘Doing Business 2017‘ Report

Overall, New Zealand is the best worldwide positioned country. The state where it is easier to do business, ahead of Singapore (2) and Denmark (3).

An example: 13 days are needed to open a new business in Spain. Exactly 12.5 days longer than a New Zealand company.

The Top 10 is completed by Hong Kong(4), South Korea (5), Norway (6), United Kingdom (7) United States (8), Sweden (9) and Macedonia (10). All above 81.5 percentage points.

Spain also outperform Germany (17), Canada (22), Portugal (25), Netherlands (28) and France (29).

Below the 32rd of Spain there is a long list of countries, such as Japan (24), Belgium (42), Mexico (47), Italy (50), Colombia (53), Argentina (116) and Brazil (123).

The rise of the Spanish economy is positive. But as noted by the World Bank itself, reforms are needed and time for its consolidation on the international business map.