

On 7 February 2023, Malta transposed Directive (EU) 2019/2121 on cross-border conversions, mergers and divisions, more commonly referred to as the Mobility Directive, into Maltese Law.
The primary aim of the Mobility Directive is to provide a coherent and harmonised legal framework for cross-border movement of limited liability companies across all Member States and therefore enhance the freedom to establish companies. At the same time, a harmonised legal framework for cross-border conversions and divisions will lead to better protection of employees, creditors, and minority shareholders within the internal market.
In short, the Mobility Directive introduces three key changes:
We support you in implementing the mobility directive.Dr Roberta Avellino Pulé, Senior Legal Consultant, ECOVIS Malta, Mosta, Malta
In view of the complexity of cross-border conversions, mergers, and divisions, the Mobility Directive has also introduced a function for national authorities to scrutinise the legality of cross-border operations before they take effect, explain the Ecovis experts. In assessing whether a pre-operation certificate should be granted, authorities shall take into consideration the legal and economic aspects of the proposed cross-border operations, its implications for the employees, such as potential impacts on working conditions, the implications for the future business of the company, as well as the solutions offered to shareholders wishing to exit the company.
The authorities reserve the right to extend the period of assessment or to refuse the pre-operation certificate if they suspect that the cross-border operation is set up for abusive, fraudulent, or criminal purposes.
Dr Roberta Avellino Pulé, Senior Legal Consultant, ECOVIS Malta, Mosta, Malta
Email: malta@ecovis.com
The Canary Islands is one of the most popular destinations in Spain for foreigners for buying a holiday or retirement home, or even a primary residence. After Brexit, the question often arises as to how the process has changed from both an immigration and taxation perspective. Ecovis expert Natalia Bonilla answers the most important questions.
Of course, everyone can buy property in Spain regardless of their citizenship and whether they are from the EU or not. For the British, the purchasing process remains the same after Brexit.
For 90 days in a period of 180 days, without any need to obtain a tourist visa. For longer periods, British citizens are required to obtain a regular residence visa.
There are different visas covering different personal circumstances: a non-lucrative residence visa (for people who do not plan to work in Spain and have sufficient financial means and full-cover health insurance), a “Golden Visa” (a suitable option for investors, for example those investing EUR 500,000 in real estate, allowing the holder the possibility to work in Spain), a digital nomad visa, etc.
We will be happy to advise you on legal and tax issues relating to the purchase of real estate in Spain or questions on residence permits.Natalia Bonilla, laywer, partner, ECOVIS Legal Spain – Canary Islands, Spain
This is linked to an annual index (IPREM), so it changes slightly every year. For 2023, the amount is set at EUR 2,400 per month (EUR 28,800 per year) for the permit holder and EUR 600 per month (EUR 7,200 per year) for each family member accompanying the permit holder.
Of course. The visas referred to above have a limited initial duration (1 to 3 years), but all of them can be renewed for subsequent periods of 2 to 5 years depending on the type of permit. After 5 years of continued residency in Spain, it is possible to obtain a permanent residence permit.
While nothing has changed in relation to the taxation related to the purchase, there has been an increase in the rate of non-resident income tax (IRNR), triggered by the possession (imputed income) and exploitation of the real estate, from 19% to a 24%.
Natalia Bonilla, lawyer, partner, ECOVIS Legal Spain – Canary Islands, Spain
Email: natalia.bonilla@ecovis.es
Taxpayers must submit the occupancy declaration for residential premises by 30 June 2023 at the latest. If the deadline is missed, there is a penalty of EUR 150 per building. The new tax obligation applies to natural and legal persons. The Ecovis experts know the details that owners must consider.
Since 1 January 2023, housing tax has been abolished for all principal residences and for all taxpayers. However, it still applies in the case of second homes and vacant premises. Consequently, owners are subject to a new reporting obligation set out in Article 1418 of the French Tax Code (FTC), relating to the occupancy of French residential real estate i.e., houses, apartments, garages, carparks, cellars. Failure to declare, as well as the omission or inaccuracy of the information provided, are subject to a tax fine of EUR 150 per property (Article 1770 terdecies of the FTC). Once submitted, this declaration must only be updated if there is a change to the details.
If you need assistance in meeting this new obligation, please contact us before 30 June 2023.Vanessa Raindre, Tax partner, MD Legal, Paris, France
Normally, the properties that are subject to the filing requirements are shown on the website www.impots.gouv.fr. If not, the taxpayer must inform the tax administration. Filing the declaration also provides an opportunity to check whether the information held by the tax administration on a property is correct: nature and address of the property, batch number, precise location (building, staircase or entrance, level, door), cadastral references, surface, number of rooms etc.
Vanessa Raindre, Tax partner, MD Legal, Paris, France
Email: vanessa.raindre@mdlegal.fr