American Club February Happy Hour (next Tuesday, the 13th❤️) will be at Welkhome Club - a funky, craft bar. Anyone can come as a guest; a copa and tapas are included in the fee.Dues-paying ACM members are FREE! We also have great raffle prizes each month. Join us to network, meet new people and enjoy your “old friends!”
Check out the info below and the post about the location too.
PLEASE REMEMBER!!! You MUST register on Eventbrite. Sometimes our events sell out and we cannot accept walk ins who have not registered there.
Our 2018 "Need to Know" Seminars kicked off last night with a standing room only talk on Modelo 720-the reporting requirements for U.S. citizens residing in Spain. Please let us know if you have ideas for future seminars. What do you "need to know?"
Thank you to Naked Madrid for this handy list of blogs! We hope you enjoy getting to know Madrid a little better!
For what’s going on, groups and clubs
Please join us for a warm celebration of the holidays with a drink, tapas and lots of Christmas cheer!
Tuesday, December 12
7- 9 PM
Calle de la Infanta Mercedes, 103
Join us! One drink and tapas, plus great drawings are included in your fee.
Again this month we are having members-only drawings: TWO round trip tickets to NYC from Delta Air Lines plus gifts from beneath our corporate tree.
We are supporting the US Marines and Toys for Tots
Let's give some local children a little Christmas Joy!
PLEASE BRING A NEW UNWRAPPED TOY
(ages 0-16 and approximately 15 euros in value)
Bring your friends and register on Eventbrite.
Not a member yet? For just 100 € you can enjoy free happy hours and discounts on all our other events. (Our website has more information or you can just sign up on Eventbrite.)
What are the benefits of the new Spanish law for self-employed workers? After several months waiting, the new Spanish Law of Urgent Reforms for self-employed Workers has been published. We thank nml Consultores for explaining the changes that it introduces. With specific questions and/or to schedule an appointment, please contact them directly.
Travesía de las Cañas, 2 28043 Madrid
Tel: +34 91 5194392 Fax: +34 91519656
Tras varios meses de espera, la Jefatura de Estado ha publicado hoy en el BOE la Ley 6/2017, de 24 de octubre, de Reformas Urgentes del Trabajo Autónomo. Medidas que entran en vigor al día siguiente de la publicación en el BOE.
Los trabajadores autónomos que combinen simultáneamente el trabajo por cuenta propia con otro por cuenta ajena y coticen por contingencias comunes en régimen de pluriactividad tendrán derecho al reintegro del 50% del exceso en que la suma de sus cotizaciones supere la cuantía que se establezca en los Presupuestos Generales de cada ejercicio.
La Tesorería General de la Seguridad Social abonará de oficio este importe antes del 1 de mayo del ejercicio siguiente.Reconocimiento del accidente de trabajo in itinere
Se entenderá como accidente de trabajo del autónomo el sufrido al ir o al volver del lugar de la prestación de la actividad económica o profesional.Bonificación por la contratación de familiares
Si el autónomo decide realizar un contrato indefinido al cónyuge, ascendientes, descendientes y demás parientes de hasta segundo grado de consanguinidad tendrá derecho a una bonificación en la cuota empresarial por contingencias comunes del 100% durante 12 meses.
Compatibilidad de la realización de trabajos por cuenta propia con la percepción de la pensión por jubilación
Si el autónomo no tiene trabajadores a su cargo tendrá derecho, como hasta ahora, a recibir el 50% de la pensión de jubilación reconocida. La mejora introducida en este sentido es la posibilidad de ampliar este porcentaje al 100% si se acredita tener contratado, al menos, a un trabajador por cuenta ajena.
Medidas para mejorar la cotización de determinados trabajadores autónomos
La cuota de los societarios dejará de vincularse al Salario Mínimo Interprofesional y se determinará ahora en los Presupuestos Generales del Estado de cada ejercicio.
Medidas que entran en vigor a partir del 1 de enero de 2018Afiliación, altas y bajas del autónomo en la Seguridad Social
Los trabajadores por cuenta propia podrán realizar hasta un máximo de tres altas y bajas al año y solo pagarán por los días realmente trabajados. Hasta ahora, era necesario pagar el mes entero pero con la nueva modificación solo se pagarán los días que realmente esté dado de alta, teniendo en cuenta para ello la fecha de inicio y cese de la actividad.
Posibilidad de cambiar la base de cotización
Se eleva de 2 a 4 el número de veces al año en que los trabajadores autónomos pueden cambiar la base de cotización. Las fechas contempladas para los cambios son:
Se reducirán los recargos por el retraso en el pago de las cuotas a la Seguridad Social si el abono de las mismas se produce dentro del primes mes natural siguiente al del vencimiento del plazo para su ingreso. Esta mejora supone reducir a la mitad el recargo existente en la actualidad, del 20% al 10%.
Los pagos que se produzcan a partir del segundo mes de vencimiento, continuarán con el recargo del 20% de la deuda.Extensión de la tarifa plana
Se amplía la duración de la tarifa plana de 50 euros mensuales de 6 a 12 meses. Asimismo, se reduce de 5 a 2 años el periodo que un trabajador debe estar sin cotizar en el RETA para poder beneficiarse de la misma.
En el caso de trabajadores que reemprendan su actividad como autónomos y que hayan disfrutado de la tarifa plana en su anterior periodo de alta, el plazo para poder beneficiarse de la tarifa serán 3 años en lugar de 2.
A partir del año, y hasta completar un periodo total de 24 meses, los autónomos podrán disfrutar también de una bonificación de la tarifa: 50% durante 6 meses y 30% durante otros 6.
En el supuesto de que el trabajador sea menor de 30 años (en caso de hombres) o 35 años (en caso de mujeres) y cause alta inicial o no hubiera estado en situación de alta en los 2 años anteriores (antes 5 años), podrá sumarse a las bonificaciones y reducciones anteriores una bonificación adicional equivalente al 30%sobre la cuota por contingencias comunes. Esta bonificación se aplicaría en los 12 meses siguientes, extendiéndose por tanto el periodo total bonificado hasta los 36 meses.Deducción de gastos de manutención y dietas
Los trabajadores por cuenta propia se podrán deducir los siguientes gastos:
Please join us for our October happy hour and possibly our biggest night of raffles EVER!
Casa Club | Calle Pinar 17, | 28006 Madrid | Spain
Tuesday, October 10, 2017 from 7:00 PM to 9:00 PM (CEST)
Hosted at the exclusive Casa Club, we guarantee you will enjoy your evening!
**** Please note: Our host, Delta Airlines is giving two round trip tickets to NYC This one item is for dues-paying members only. Not a member? Now is a great time to join!
Other GREAT items;
Las Rozas Village-8 VIP shopping passes + lunch https://www.lasrozasvillage.com/en/home/
Taste of America- basket https://www.tasteofamerica.es/en/
Ceca Magan-5 hrs legal Counseling http://www.cecamagan.com/en/
US Tax Consultsnts- 1 yr tax prep http://nmlconsultores.com/
Roll Madrid-Beer and Tapas Tasting for Four www.rollmadrid.com/en/
Tradelane-2 sets travel accessories http://www.tradelane.es/services
Devour Madrid- 2 tickets Uncorked wine tastings https://madridfoodtour.com/
Sinews 6 sessions of accent modification https://www.sinews.es/en/adults/accent-modification.html
Click HERE to register!
THIS JUST IN!!!!!
At our Happy Hour on Tuesday, (September 12), we will be raffling off GREAT items donated by some of our corporate members:
Taste of America Back to School basket...
Devour Spain-Wine Tasting for two
Tradelane-Travel accessories for two
Sinews-one month of "Mindfulness" classes
US Tax Consultants-One year of a USA tax return
CECA Megan-five hours of legal consultation
Happy Hour begins at 8:00pm at the International Institute, Calle Miguel Angel 8.
Get to know us for FREE this month, BUT YOU MUST REGISTER on Eventbrite:
We are pleased to announce our calendar and reading line-up for September, October and November 2017. [Last updated on November 21, 2017].
Tuesday September 26, 2017
Don't have time to read the book? Read/watch/listen to one of these interviews of the author:
For a short overview, watch the author's 6-minute TED talk: Angela Lee Duckworth: Grit: The power of passion and perseverance, or listen to one of these interviews:
November can be a hectic month in Spain, with all the fiestas and puentes in December, so we've chosen a TED Talk for our November meeting. We hope you'll find time to watch this 18-minute video --one of the 10 most popular TEDx talks with over 33 million views.
We will be meeting at 7:oo pm at Roll Madrid (Calle Amaniel 23, 28015 Madrid)
About the American Club of Madrid (ACM) Book Club
The ACM Book Club is a monthly event for ACM members to meet and discuss a selected book. We focus on non-fiction books related to personal and professional growth. We aim to select practical books that have a scientific basis in fields such as behavioral economics, positive psychology or neuroscience. We may sometimes select a podcast episode or TED Talk for discussion.
Please join us for any or all our our monthly discussions. We meet on the 4th Tuesday of the month.
Not an ACM member? You are welcome to join us for one meeting to try it out.
Join us as we meet for the fifteenth year!
Did you know that as a member of the American Club of Madrid, you are also receive member benefits with over fifty other American Clubs worldwide?
Until recently, the annual meeting was presidents only. Several years ago, the leadership team of the association decided that all members of all clubs could and should be invited. You can see the agenda and pictures of previous meetings on the AAC website.
This year's meeting will be held in Lisbon and coincides with their club's 70th anniversary celebration. The weekend will be extraordinary. Traditionally, we have our business meeting Friday, followed by a cultural weekend planned by our hosts. We have included this year's itinerary below. Please join us if you can.
Any questions can be directed to Liz Keating, our president at email@example.com or the Lisbon executive director,listed at the bottom of the itinerary.
Portugal, Lisbon: 19th – 22nd October 2017
Thursday, 19thth October – Arrivals & Welcome to sunny Lisbon
Time: 7:30 p.m. – 09:30 p.m.
Attire: Smart casual
Location: Turim Liberdade Hotel
Cost : Complimentary
Welcome reception and cocktails at Turim Avenida Liberdade Hotel
( at the main avenue of Lisbon )
Turim Av Liberdade Hotel
Av da Liberdade, 247
Tel.: +351 211 589 270
Fax: +351 211 589 279
Friday, 20th October – AAC Conference – Hotel Turim Avenida Liberdade
Time: 9:30 a.m. – 5:00 p.m.
The annual meeting will take place at the Hotel Turim Avenida da Liberdade, where you will be staying. Meeting room will be equipped with: screen, beamer, flipchart, lectern, laptop and mineral water.
Morning : Coffee/tea break.
Lunch : Buffet
Afternoon : Coffee/tea break.
Friday, 20th October
ACL will be responsible by all transfers
Cocktail reception at the home of Patrick Siegler Lathrop, incoming ACL president, in beautiful Cascais ( Qta da Marinha ) followed by dinner at an ocean side Seafood restaurant called Furnas do Guincho.
Time: 06:00 p.m. meet at the hotel lobby
Cocktail: 06:45 p.m.
Attire: Casual chic
Cocktail reception at the home of Patrick Siegler Lathrop * Free of Charg
Dinner at an ocean side * Furnas do Guinch0
Dinner: 08:00 p.m.
Attire: Casual chic
Cost around € 45 per person (3 course dinner, including mineral water, wine and coffee)
Ocean side Seafood restaurant
Location: Estrada do Guincho 2750-642 Cascais, Portugalhttp://www.furnasdoguincho.pt
Saturday, 21st October
Guided tour at the Fronteira Palace. Beautiful gardens and spectacular tilework.
ACL will provide Transfers
Time: 10:30 a.m. – 12:00 a.m.
Cost: € 15.00 per person
Fronteira Palace is located northwest of the city in the suburb of Benfica. Built in 1640, it is still one of the most beautiful residences in Lisbon, containing splendid rooms with 17th and 18th century decorative tiles, frescoed panels and oil paintings.
But it is most famous for its stunning formal gardens with even more tiles (some of the country's finest, depicting hunting, battles, and religious scenes), statuary (figures personifying the arts and mythological figures as well as busts of Portuguese kings), and fountains. It is still privately owned, and a guided tour conducts visitors around the rooms and gardens.
Time : 01:00 p.m.
Darwin Café in Belém area
Cost: € 40.00 per person
AAC Reception & Gala Dinner celebrating the American Club of Lisbon 70th Anniversary
With Guest of Honor H.E. the President of the Republic of Portugal
Sheraton Lisboa Hotel & Spa
Time: 8:00 p.m.
Attire: Black tie optional
Cost: € 90 per person
Location: R. Latino Coelho 1, 1069-025 Lisboa (00351) 213120000
ACL will provide Transfers
Sunday, 22nd October
Pena Palace Tour in Sintra and Lunch at Sintra downtown.
Join us for a private tour at the Pena Palace in Sintra
Time: 09:30 a.m. meet at the hotel lobby
Cost: €47,50 per person ( visit to Pena Palace and Lunch at downtown Sintra )
ACL will provide Transfers
Lunch at downtown Sintra
Time: 13:00 a.m.
Return to hotel by 04:00 p.m.
Contacts for further information
+351 93230 66 00 or
The Foreign Account Tax Compliance Act of 2010 has changed the nature of Tax Reporting for American Expatriates. Formerly benign Passive Foreign Investment Companies (PFICs) have become a tax nightmare incurring significant costs in tax preparation and taxes affecting investment performance.
By David Kuenzi, 2017.
If you are a U.S. citizen or a U.S. permanent resident who has been living and working outside the U.S. and investing your savings through a non-US financial institution, you need to learn what a Passive Foreign Investment Company is very quickly. Why? Because the passage of the Foreign Account Tax Compliance Act (FATCA) has ushered in a new era of dramatically heightened enforcement by the U.S. laws regarding taxation of and reporting on investments held outside the U.S. by U.S. Citizens or U.S. permanent residents.
There has already been much discussion about IRS Form 8938, which, since 2011, has been required filing for Americans abroad with more than $300,000 of financial assets held outside the U.S (for American residents in the US, the threshold is only $50,000). Form 8938 requires not only the listing of assets held outside the US, but also specifically requires a box to be checked if the assets are “Passive Foreign Investment Companies.”
What are PFICs?
The moniker “Passive Foreign Investment Companies” (PFICs) sounds like some exotic and highly-specialized investment, and, as a result, many Americans automatically assume that they do not own any. For many unsuspecting Americans, abroad this conclusion is a mistake, because PFICs are simply “pooled investments” registered outside of the United States encompassing mutual funds, hedge funds, insurance products and non-U.S. pension plans. A bank account might also be a PFIC if that account is a money-market fund rather than simply a deposit account, because money market accounts are essentially short-maturity fixed-income mutual funds. Furthermore, PFIC rules can and generally do apply to investments held inside foreign pension funds unless those pension plans are recognized by the U.S. as “qualified” under the terms of a double-taxation treaty between the U.S. and the host country. Due to FATCA, the consequences of this mistake have become very significant.
The tax treatment of PFICs is extremely punitive compared to the tax treatment of similar investments that are incorporated in the U.S. For example, an American holder of a U.S. incorporated mutual fund invested in European stocks pays the low long-term capital gains rate of 15% if the fund is held for more than one year. The same American investor who buys a nearly identical fund listed in the UK or in Switzerland (or any place outside the US) will find their investment subject to the PFIC taxation regime, which counts all income (including capital gains) as ordinary income and automatically taxes it at the top individual tax rate (39.6%). In some cases, the total tax on a PFIC investment may rise to well above 50%. Furthermore, capital losses cannot be carried forward or used to offset other capital gains.
PFIC Compliance for Non-US Mutual Funds
High taxation rates are not the only big disadvantage of PFICs for American investors. The other major complicating factor of PFICs is the onerous task of simply complying with IRS reporting rules for PFICs. Ownership is most common among expatriate Americans, many of whom employ accountants specializing in tax preparation for Americans abroad. However, hiring an expatriate tax specialist does not guarantee that the proper PFIC related filings are being made and the taxes paid.
Often, the client inadvertently fails to divulge (and the tax accountant fails to request) the necessary information on the client’s mutual funds, hedge funds, or other financial holdings. In other cases, if the client and the tax preparer have negotiated a fixed fee for tax preparation, the preparer may be reluctant to ask about possible PFICs because record keeping and preparation time for the complicated form 8621 (required to be filed for each PFIC investment owned) is estimated by the IRS to be 22 hours per year!
As a result of the 2010 FATCA law, form 8621 must be filed every year for separate PFIC (previously 8621 only had to be filed in years of when the fund paid distributions to the fund holders). It does not take long to realize that filing form 8621 for three to four PFIC investments (or more) might quickly run up a tax preparation bill to many thousands of dollars, no matter how much (or little) the underlying investments are worth or how well they have performed.
However, this scary picture raises an obvious question. If this is such a big trap, why has there not been more discussion of the issue and why have I never read about it before? The reason is that until now the IRS faced many obstacles to enforcing the PFIC rules and lacked the resources to go after filers on the issue. Failure to file Form 8621 and properly report PFICs has hardly ever resulted in an audit or a prosecution for tax fraud. The PFIC issue has been safely ignored until now, even by professional tax preparers. But times have changed.
FATCA makes PFIC Reporting Mandatory
The FATCA legislation not only requires new self-reporting on PFICs, non-US Mutual Funds and other foreign held financial assets, but also requires all “foreign financial institutions” to report on the assets held by U.S. citizens and U.S. permanent residents directly to the IRS. While it may seem hard to believe that foreign financial institutions would willingly comply with such reporting requirements, the fact is that industry observers have observed nearly universal compliance rules by banks, brokerages, insurance companies, mutual funds (anything “financial”) around the world, because of the severe sanctions the FATCA law imposes on non-compliant financial institutions. The point is that all U.S. citizens must assume that the IRS will have a direct and easily accessible window onto their holdings in foreign financial institutions. It will be easy to cross-reference direct reports by these institutions to the IRS with self-filed form 8938 and 8621 and determine whether or not your PFIC investments have been properly reported and the tax properly calculated and paid.
David Kuenzi founded Thun Financial Advisors in 2008 with a mission to bring world-class investment management and financial planning services to cross-border families and Americans abroad.
David is a recognized expert on cross-border wealth management, especially with respect to Americans living abroad. He has been frequently quoted on topics ranging from FATCA to currency management in The Wall Street Journal, CNN, NPR, the Economist, Bloomberg, CNBC and many other forums. His own writings have appeared in publications such as the Wall Street Journal, International Investment Adviser and Emerging Money.
Before founding Thun Financial, David worked as a securities analyst and institutional broker specializing in European and emerging markets. His employers included Chase Manhattan Bank, Deutsche Bank, Bank Austria and the Harvard Institute for International Development. His career included postings in New York, London and Moscow.
David grew up in Wisconsin, but spent most of his professional career in New York City and in Europe before returning to Madison in 2005. He received his undergraduate degree from the University of Wisconsin and completed graduate work in politics and economics at Columbia University and Harvard University before launching a career in finance. David is a Certified Financial Planner™ and speaks English, Russian and Spanish.
We are hosting a seminar to learn more as part of our "Need to Know" series.
Please join us:
Thursday, June 22
Calle Tutor, 24
You must pre-register on Eventbrite:
We hope to create a one-stop shop for news and events celebrating our club and the American culture. Let us know if YOU have an idea for post you think would be a valuable (or fun) tidbit.