We can help you when you would like to know how the Spanish tax System will affect your specific scenario, on Personal Income and Wealth.
How does this work?
We will arrange a call with you to understand your specific situation and needs. It can be to optimize the amount of taxes you would have to pay in Spain, provide your remote employer with an analysis of the implications of your relocation in Spain, or understand how trusts, carried forward interests or LLCs partnership income are taxed in Spain. No matter the query, we will be glad to provide you with a study on what will be the implications on your scenario in Spain, tax-wise, and what solutions can we offer or suggest.
What is the expected timeline?
Once we have gathered all the information required, and we have clarified any doubt from our end, we will provide you with our tax study in no more than 3 working days. Also, once provided the tax study, we will be glad to arrange a call to go through it and provide with our comments and clarifications.
How can a lawyer help me?
Spanish taxes are complex, and international sources of income, or its equivalent in Spain, is not always automatic. Luckily, our lawyers can assist you into obtaining a clear reply to your specific query, making you understand with clarity your tax situation in Spain.
¨We will be with you each step of your journey.¨
– Immigration Team
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Frequently Asked Questions
I will be a Spanish Non Tax Resident for a tax year, and employed. Will this income be taxed in Spain, as I am working physically in Spain?
For the tax year that you are a Spanish Non Tax resident, you will only have to pay taxes in Spain if the cost of your salary is reinvoiced or paid in the end by the Spanish company.
My company will relocate me, as an employee, from abroad into Spain. Does my company have any tax withholding obligations in Spain?
Your foreign employer will not have directly any withholding obligations in Spain. However, if the foreign employer has a permanent establishment in Spain, through a branch, and this permanent establishment is deducting the cost of your salary from its taxable base in the Corporate Income Tax, this permanent establishment will have the obligation to make withholdings on your salary, corresponding to your Personal Income Taxation.
As I am moving to Spain permanently, I am planning to sell my foreign former home and buy a new home in Spain. Do I have to pay taxes in Spain on the Capital Gain I might obtain from the sell
First of all, you would only have to pay taxes in Spain on the sale of your foreign entity if you sell it during a tax year in which you have been a Spanish tax Resident. If that is the case and you are younger than 65 in the tax year you sell the property, you will have to pay taxes on the capital gain you might obtain when selling the foreign property. However, please note that in Spain we have an exemption in Capital Gains in case of reinvestment of the sale price, which works the following way: – You bought the property for 400.000 Euros – You sell the property for 1.200.000 Euros – Your capital gain is 800.000 Euros – You buy a new habitual residence in Spain for 600.000 Euros As you have reinvested a percentage of your sale price (600.000/1.200.000 = 50%), this percentage of the capital gains will be exempt from taxation. Therefore, you would only have to pay taxes on the 50% of the 800.000 Euros of Capital Gain. To benefit from this exemption, you will need: – That the property you are selling was your habitual residency, at least, in the 2 years before the sale. – To acquire the Spanish property in 2 years since the sale of your former Habitual Residency – To start living in the Spanish property in 12 months since the acquisition – To live in this Spanish property for 3 years since the acquisition – To live in this Spanish property for 3 years since the acquisition