Professional tax help with double-taxation in Spain
The general purpose of the double taxation agreement is to make living, working and investing in Spain a more appealing and less expensive prospect to foreigners. This treaty can help to save thousands of euros in taxes for the average person or business, however understanding the rules and regulations that govern this treaty can be a daunting and often confusing task. Proper understanding of the Double Taxation Agreement Spain is imperative to ensure that you take full advantage of this treaty and our legal team is here to explain all of the details to you.
What is the definition of Double Taxation Agreement?
The double taxation agreement is an agreement that has been made between numerous countries throughout the world that protects individuals and businesses from having to pay the same taxes in multiple different countries. The implementation of Double taxation Spain was done with the intention of making living, working and investing in Spain a more appealing and less expensive prospect to foreigners and provides the appropriate guidelines to determine to which country an individual or company is responsible to pay specific taxes to.
What are the benefits of the Double Taxation Agreement?
The primary benefits of the Spain double tax treaties are that it:
- Provides clear rules and regulations on which taxes must be paid in which country.
- Prevents unnecessary double taxation in more than one country.
- Encourages foreign investment and makes this endeavor less costly.
Double Taxation Agreement for UK Expats
The UK Spain Double Tax treaty came into effect between these two countries on June 12, 2014. This Double Taxation agreement UK Spain contains special clauses making certain UK pensions (specifically government pensions) exempt from being taxed in Spain. Taxes on such pensions will continue to be payable to the UK tax authorities. Examples of these pension that are not applicable for taxation in Spain as per the Double Taxation Spain UK agreement are:
- Fire Pension
- Police Pension
- Civil Service Pension
- Armed Forces Pension
- Local Authority Pension
It is important to note however, that although not taxed directly in Spain, the total amount of received from these pensions will be taken into account and may push you into a higher tax bracket in Spain when calculating your total taxes owing.
It is also important to note with regards to the UK Spain Double Taxation agreement, in the case of companies whose assets are comprised of 50% or more of Spanish property, the Double Tax Spain agreement now states that Capital Gains Tax must be paid in Spain on the sale of any shares of this company.
What types of income are covered under the Double Taxation Agreement in Spain?
The Double Taxation Agreement protects its members from being double taxed on income from:
- Capital gains
What countries are included in the Double Taxation Agreement?
There are currently 80 countries around the world that have signed a double taxation agreement with Spain, and those are:
Albania, Algeria, Armenia, Barbados, Australia, Austria, Cyprus, Belgium, Bolivia, Bosnia, Brazil, Bulgaria, Canada, Chile, China, Columbia, Costa Rica, Croatia, Cuba, Cyprus, Czech Republic, Germany, Denmark, Kyrgyzstan, Ecuador, Egypt, El Salvador, Estonia, Finland, Romania, France, Georgia, Germany, Greece, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Kazakhstan, Korea, Latvia, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, New Zealand, Mexico, Moldova, Morocco, the Netherlands, Norway, Pakistan, Panama, Philippines, Poland, Portugal, Russia, Saudi Arabia, Serbia, Slovakia, Slovenia, South Africa, Sweden, Switzerland, Tajikistan, Thailand, Trinidad & Tobago, Tunisia, Turkey, Turkmenistan, United Arab Emirates, United Kingdom, USA, Uruguay, Uzbekistan, Venezuela and Vietnam.
Our tax lawyers will help you to prevent double taxation in Spain
At Lusa Legal we want to help you understand Spain’s tax legislation, specifically the Double Taxation Agreement. By understanding how this agreement works and how it affects you specifically, you will be better able to take full advantage of all of it’s benefits and will avoid paying any unnecessary taxes. The international team of legal experts at Lusa Legal can provide you with the proper tax forms and will aid you in completing them and submitting them on time. We are always happy to assist you and to answer any questions that you have. Contact us today and let us help you: +34 605 33 60 90.
* Estimated service price, total amount will depend on the particular case and additional services required.
VAT is not included in the price.