## Learn more about offshore bank accounts and tax optimization

The IRPF section table helps establish, proportionally, the percentage of taxes that each worker pays based on their income.

It is time to make the Declaration of Income and one of the keys to understanding how the payment of Personal Income Tax works is to know what the personal income tax brackets consist of. Learn more here https://offshorecitizen.net/.

These sections indicate what percentage of taxes must be paid by each taxpayer and are escalating, increasing in proportion to their gross income, proportionally; the philosophy behind this mechanics is to reduce the tax payment of those who have lower incomes and to increase one of the highest rents.

In this way, the sections of the IRPF for 2017 are presented below:

Personal income tax sections for 2017
Tax baseRetention
€ 0€ 12,45019%
€ 12,450€ 20,20024%
€ 20,200€ 35,20030%
€ 35,200€ 60,00037%
More than € 60,000Four. Five %

As you can see, the Income Tax table assigns the payment of taxes progressively. In addition, each section should not be understood as a tight block in which a certain percentage is taxed for the total income, although these barely exceed the limit of the new section by a few hundred euros.

In practice, this flexibility means that each worker pays a certain percentage for the money accumulated in each tranche, not for the total income obtained in the maximum tranche. Let’s see it with an example:

Imagine that a worker earns 21,000 euros gross per year, which in fiscal jargon is called “work performance”. Should I then pay 30% of taxes from the total annual salary for having exceeded the limit between sections in only 800 euros? No. In reality, the IRPF payment of this taxpayer would remain as follows:

Tax base: € 21,000
SectionTo turn off
The first installment: pay 19% of € 12,450€ 2,365.5
The second tranche: pay 24% for 7,750 (the difference between the first and second tranches)€ 1,860
Third tranche: (pay the difference between your income, € 21,000, and the tranche limit: € 20,200)€ 240
Total to pay without taking into account other fiscal and personal data€ 4,465.5

In this way, we see how the taxpayer has not had to pay the total of his income based on the retention percentage of the third tranche – 30% – by “spending” between installments only 800 euros.

Thus, from this total to be paid, the withholdings that have already been practiced throughout the year, as well as the possible deductions to which the taxpayer is entitled, must be reduced.

## Who is required to present the income tax return

Knowing the IRPF tranches is a useful way to understand why we pay a certain amount of money to the Treasury in our annual income statement. However, not all taxpayers need to make this statement.

Thus, although the Treasury specifies that, in principle, “all individuals who are resident in Spain are required to declare all taxpayers,” there are a series of exceptions that we review:

Who is exempt from filing the income tax return
Workers whose annual gross salary (work income) is equal to or less than € 22,000Provided they come from a single payer.When there are several payers, provided that the sum of the second and subsequent amounts in the order of amount does not exceed the sum of 1,500 euros.When the only work income consists of passive benefits.
The limit is set at € 12,000 per year in the following casesWhen the income from work comes from more than one payer and the sum of the amounts received from the second and remaining in order of amount exceed the amount of 1,500 euros per year.When compensatory pensions of the spouse or annuities are received for non-exempt food.When the payer of work income is not required to retain.When full returns to work are received subject to a fixed rate of retention.
Income from movable capital and capital gains subject to withholding or deposit on account, with a joint limit of 1,600 euros per year.The capital gains from transfers or reimbursements of shares or participation of collective investment institutions are excluded from the joint limit of 1,600 euros per year.
Imputed real estate income, treasury bill yields and subsidies for the purchase of officially protected homes or appraised prices, with a joint limit of 1,000 euros per year.Those who have had, exclusively, patrimonial losses lower than 500 euros are also excluded.

## Debt management programs: explanation | Loans Quebec

### What is a debt management program?

When you start a program like this, it allows you to make a payment that not only covers all your debts, but is adjusted to your means. The main purpose of this program is to help you repay your debts without stress and to save the most money by avoiding all the fees and interest. Before deciding whether the program is right for you, know that it applies only to unsecured debts. Unsecured means: credit card, lines of credit or other loan that required a guarantee when you requested it.

In order to begin the debt management program, you must contact a credit advisor who will help you make an agreement between the company that you owe money and you.

• Once you have found a credit counseling service that’s right for you, an advisor will work with you to build a plan specific to your personal situation.
• Your advisor will then contact creditors to arrange an affordable monthly payment so that you can repay the debt as soon as possible.
• Also, your advisor asks creditors to lower fees and interest costs. Very often, they will accept.

Essentially, such a program will allow the consolidation of unsecured debts into one monthly payment, which will allow you to get back on track quickly and free you from your debts.

### How does the debt management program work?

Working with an advisor on a debt management plan that will be customized to your financial situation might be what you need. Your advisor will help you step by step by providing you with all the details. That’s how this program works:

• The program will not pay the debts for you. In fact, it’s the opposite. The program ensures that creditors recover the money you owe them.
• Your creditors will still accept payments over a longer period than expected (no more than 4 years). This will allow you to decrease the amount of monthly payments. In some cases, the creditor could even reduce or remove the interest associated with your debt.
• Your monthly payments will be simple and easy to manage, made by phone, debit card or postal money order.
• Remember that the program does not apply to all debts.
• The advisor’s agreement with the creditors is purely voluntary and not legally binding.

### What are the advantages and disadvantages of a debt management program?

• Reduction or disappearance of interest on debt
• It takes a maximum of 4 (sometimes 5) years to completely pay off all your debts that are part of the program. This is much faster than trying to pay off your debts alone.
• One monthly payment. It is much easier and less stressful to manage a single payment, as opposed to having to pay several payments to several creditors.
• Your advisor will talk to the creditors in your name, which will save you from dealing with them personally.
• The program includes credit cards, bank loans and corporate loans.
• If you can not consolidate your loans because your credit score is too low, then this program is a great solution for you.

• Creditors respect the program voluntarily, which means they can withdraw from their promises at any time.
• You will have no guarantee from your creditors and they can still send the collectors after you.
• You will not be able to get a new line of credit; if you opt for a new credit, this could affect the success of the program. Before starting a debt management program make sure you will not need new credits in the coming years.
• The effect of the program could be seen only after a few months. This means that the creditors will not receive the payments right away. You must continue to make regular payments to avoid missing a payment.

A debt management program is a great option for those who can not get out of debt or can not pay all of their debt. This program will allow you to repay your debts and regain some financial confidence. The main purpose of the program is to provide you with the necessary tools to have a better management of your finances in order to avoid such incidents soon. Your advisor will teach you how to budget, how to meet it, and how to monitor your expenses and financial goals.

## 5 movies to learn about economics and finance

The financial, political and social changes; national or international, affect our personal finances, many times, even without us noticing. As individuals and companies, we are immersed in an economic system, which dictates the structure of production, allocation of economic resources and distribution and consumption of goods and services; that we use daily in most of the world.

We are deeply interconnected and now, increasingly, because of technology. Therefore, what happens in China or the United States affects us in one way or another and we must be aware of it.

Knowing stories and current events that have an economic background is always interesting, as it allows us to understand and reflect on the world in which we live. And what better than to appreciate those stories through the images of cinema (and television) to awaken even more the curiosity about our economic context and understand its possible repercussions in our financial planning.

Therefore, we present you 5 movies that will offer you a different perspective on economic issues. Which ones will you see this weekend?

# 1. Deep Web (2015)

This documentary by director Alex Winter explores the world of the deep web, the hidden side of the internet. Through the story of Ross Ulbricht, the creator of one of the most famous drug sales sites, Silk Road, Bitcoin’s participation in digital transactions is explored, the whole issue about the legalization of drugs and the economic dynamics that is created around a product so conflicting for society.

This work, also by director Alex Winter, chronicles the rise and fall of Napster, the first digital music download server. This interesting film shows how the MP3 format was popularized for the free exchange of songs by new, alternative or classic artists. The film, above all, emphasizes the influence of Napster in the economic revolution of the record industry, which led to the creation of streaming services such as Spotify, Apple Music or Deezer.

Complete documentary here: http://www.rtve.es/alacarta/videos/el-documental/documental-comprar-tirar-comprar/1382261/

Documentary by the Spanish television station RTVE that explores the worrying trend of domestic products, increasingly regulated based on the so-called programmed obsolescence. It addresses the possible global consequences of an economic system based on a constant consumption of products made to fail after a certain time.

# 4. Bad news (Too big to fail, 2011)

Produced by HBO, it adapts the homonymous book of the writer and journalist Andrew Ross Sorkin. It tells, step by step, the explosion of the US economic bubble in 2008, due to the granting of mortgage loans to disqualified people, but it does so from the perspective of the big companies and the powerful people involved.

The plot focuses mainly on the role played by Henry Paulson, Secretary of the Treasury of the United States during the government of George W. Bush and member of the Board of Governors of the International Monetary Fund; as well as the people who worked or related to him. It shows how was their reaction and performance before the outbreak of economic depression, how they faced the fall of their empires and how they tried to justify it.

# 5. Human Capital (Il capitale umano, 2013)

Directed by Paolo Virzi, Human capital is located in Italy, after the economic crises of 2011 and 2013. In a precarious panorama, the film portrays the well-to-do Italian class, to show the social reality of a country wrapped in greed and the taste for excessive accumulation, which cares little about breaking human bonds or harming their stability. This film criticizes the conceptualization of wealth as the human engine.

As you can tell, these films show us how the changes that occur in different areas and in different parts of the planet, are present in our daily lives, for example: the current regulation of Bitcoin to avoid its use in illegal activities, the way in which we consume music or control measures for granting credits, which seek to contain bubbles in the real estate sector. All this also invites us to think about how the decisions we make in our current context can affect our future financial planning.

## When does my life insurance pay in the IRPF and how does it do it?

When does my life insurance pay in the IRPF and how does it do it?

Although life insurance is a product through which we can use in order to save or invest, the most general coverage is to cover the death or disability of the insured.

If the death occurs, the income obtained must be taxed in the Inheritance Tax, which is transferred in each Autonomous Community. But if a disability occurs or in any case in which the policyholder who hires and pays the insurance premium (or the insured if the insurance is collective) coincides, and the beneficiary of the benefit has to do it for the Tax on the Income of the Physical Persons (IRPF). We explain the key points.

## Life insurance and IRPF

In the first place, although we have indicated that disability, that is, when you receive this benefit as an insured to cover this situation, is one of the clearest assumptions in which you have to pay for personal income tax, it is not always the case. There is an exception, disability insurance whose beneficiary is the mortgagee.

It is a very common case for many mortgaged that at the time of contracting the mortgage loan of their home they were also forced to subscribe to life insurance, with disability coverage in most cases, in favor of the financial institution to cover the outstanding debt. The changes in the new Mortgage Law that will be approved in this year 2018 end with this obligation, the mortgagee being able to voluntarily subscribe this insurance if the entity offers some consideration or improvement in conditions such as the interest rate.

Beyond this exception, if the policyholder is going to receive the capital stipulated in the policy, he must declare it in the IRPF of the year in which he received this payment. For example, if you received it in 2017, in the income statement for that year that can be submitted from April 4 to July 2, 2018.

The calculation method is very simple, it will do so for the amount received by subtracting the premiums paid in that year.

For example, if you have received 60,000 euros and paid 300 euros of premium in that year, you will have to declare a profit of 60,000 euros – 300 euros = 59,700 euros.

This yield is considered as real estate capital so it will have to be taxed depending on its amount at different rates:

• The first 6,000 euros at 19%
• From 6,000.01 euros to 50,000 euros to 21%
• From 50,000.01 euros and up to 23%

## Approved initiatives will generate 427 jobs, most of them highly qualified

The Board of Directors of the Center for Industrial Technological Development (CDTI) has approved 71 new R + D + i projects with a total budget amounting to almost 38 million euros. The CDTI will contribute more than 29 million euros, thus promoting business R & D + i.

Of the initiatives approved, 52 are individual R & D projects and 19 belong to the Línea Directa de Innovación.

70 companies participate in the development of these projects, of which 70% are SMEs and, of these, 43% belong to medium and high technology sectors. Of the total of the companies involved, 31, that is to say, 44.3%, receives, for the first time, funding from the CDTI.

The Center for Industrial Technological Development estimates that the sum of these initiatives will involve the generation of 168 direct jobs that will also mobilize 259 indirect jobs. In total, 427 jobs for the whole economy.

Mining of Guarantees.

This Council has applied to four companies the recent measure of guarantee reduction – up to 80% of those requested – thus enabling the development of innovative projects with great potential and impact on the market. This measure is aimed at reducing the financial demands that the CDTI asks of those companies whose financial situation is weak but who have a project that has an excellent technical assessment. Additionally, to access this reduction it will be necessary that the company has the status of an SME and the project has FEDER co-financing.

Projects co-financed with FEDER funds

The CDTI has approved 42 projects co-financed with funds from the new 2014-2020 FEDER round-Pluri-Regional Operational Program for Smart Growth-, with a public contribution (CDTI + FEDER) that exceeds 16 million euros.
The implementation of the Pluri-Regional Operational Program for Smart Growth has allowed the CDTI to increase the non-reimbursable tranche to 20% for all projects that have co-financing from this program, regardless of the size of the beneficiary.

At INBIOTIC ESMEDAGRO we have 10 years of experience presenting CDTI projects with more than 90% success.

## IMPROVEMENTS IN THE CDTI INNOVATION LINE

In the council of April 2018 the CDTI has introduced a series of improvements in the Innovation Hotline. On the one hand a non-reimbursable tranche of 2% of the loan is incorporated if it is financed by CDTI, reaching up to 5% (over 75% of the budget) if the project is financed jointly with ERDF. It also increases the percentage of the advance, being able to obtain the company in a general way up to 35% (before 25%) of the loan and a limit of 400,000 € (before 300,000 €).

We remind you that this is an aid subject to the de minimis regime and that it finances 75% of the budget (reaching 85% if it is co-financed with FEDER), with the aim of increasing the competitiveness of companies by incorporating new emerging technologies in the sector. These projects must have an applied nature, very close to the market, with medium / low technological risk and short periods of investment recovery.

## Short Term Financing and Bridge Loans

Do you need financial help but have trouble finding it? Do you need capital to cover some big expenses? Have your requests for funding been rejected by banks and other financial institutions?

If you answered yes to at least one of the questions above, you need the help of a private creditor. The main advantage of the private creditor is the financing adapted to your needs and your situation. This kind of loan will not only get you out of a financial stalemate, but will also allow you to improve your financial health.

### The bridge loans explained

Although this term may be unknown to you, it is an excellent financial tool that many Canadians rely on. It is a tool offered by private creditors to Canadians who want to borrow money by guaranteeing their mortgage, for example. Also, those who can not get bank loans, this type of loan is a great way to improve their credit score.

### How does it work?

The bridge loan, similar to the mortgage loan, is used for short-term financing and to improve its credit rating in order to access bank credit later. Of course, the financial situation of each varies, but generally, everyone who uses the relay relay experience the following experience:

#### Step one: Reject by a bank

The Bridge Loan is an excellent financial tool for people rejected by banks or financial institutions because of their poor financial health.

#### Step Two: Working with a Private Creditor

Following the bank rejection, you must turn to a private creditor. Private creditors are more tolerant of risk and therefore more inclined to work with people whose financial situation might be difficult. In short, private creditors can allocate a short-term loan that will allow you to repay your debts. With an approximate duration of 6 to 24 months, you will have plenty of time to rebuild your credit rating.

#### Step Three: Working with Type B Creditors (B-Lender)

Now that you have improved your credit rating by working with a private creditor, you can refinance your mortgage with a B-Lender. As a result, you will be entitled to significantly lower interest rates, which will save you a lot of money. The goal remains the same; pay your mortgage every month on time, improve your credit rating and get better credit from a financial institution.

#### Step Four: Finally, working with a bank or a type A creditor (A-Lender)

The last step of a bridge loan is to refinance one’s loan obtained from a private creditor with that given by a bank. At this point your credit score will be improved enough to get you a bank loan.

#### Creditors Type A, Type B and Private Creditors

If one analyzes the world of financial loans, the latter can be divided into three levels. Each step represents a type of creditor. The highest echelon is for type A creditor or banks. The middle echelon includes type B creditors and the lowest echelon, private creditors.

#### Creditors of type A

Banks and traditional financial institutions have the most stringent requirements in terms of credit approval. For people with bad credit, this is a challenge. In this case, the loan from a private creditor is an excellent alternative. Individuals with a poor credit rating can obtain a loan from a private creditor and thus improve their credit rating and then apply for bank credit at low interest rates.

#### Creditors of type B

This type of creditors are in the middle of the spectrum, between banks and private creditors. Their interest rates are higher than those offered by banks but, at the same time, lower than the rates offered by private creditors. Their goal is to help you restore your financial health. An example of this type of creditor is Home Trust.

#### Private creditors

These types of creditors do not only look at your financial data, but analyze the situation as a whole. Private creditors like to work directly with debtors to find solutions to achieve their financial goals.

### When should the bridge loan be used?

Bridge loans are useful in the following situations:

• When you have been rejected by a bank or other financial institution.
• When you are late on your mortgage payments and you have received a notice from your creditor.
• When you have received your tax slip but can not afford it.
• When you have misery with the many accumulated debts and want to consolidate them all under one debt.
• When you are part of the Consumer Proposal program and want to shorten your payment period.
• When you are interested in a mortgage loan tailored to your specific needs.

### Start today

The bridge loan may be the financial solution you so badly needed. Complete the online application and we’ll call you back to see how you can achieve your financial goals.