The treaty will stipulate that an individual will be treated as a tax resident of Spain if they:
- spend more than 183 nights per year in Spain, or
- have a spouse residing habitually in Spain, or
- have a permanent home in Spain, or
- have two-thirds of their net assets in Spain.
The agreement also seeks to remove any relevant double taxation issues and offer compliance with individual domestic laws of the country in which an individual resides.
Competitive wealth management options in Gibraltar and Spain
Spain has long bemoaned the benefits gained by Gibraltar’s low tax rates for individuals and businesses – for example, there is a 10% tax on corporate profits in Gibraltar, whereas the rate is 25% in Spain. The GB Island territory is currently host to an estimated 55,000 companies which far outstrips the population of around 30,000.
And Spain is seeking to ensure that when an individual or business has the majority of their assets and business activity in Spain, they pay their tax in Spain.
However, if a Gibraltar-registered business can prove that at least 75% of their revenue is generated in Gibraltar and they were registered there before 16 November 2018, then they will be able to remain as tax resident in Gibraltar.
The Chief Minister of Her Majesty’s Government of Gibraltar, the Hon Fabian Picardo QC MP, said, “This is an important moment for Gibraltar and for our relations with our neighbour.”
In a letter to David Liddington MP (Theresa May’s de facto deputy) Mr Picardo acknowledged that the treaty was massively significant.
Blacktower wealth management advice in Gibraltar and Spain
Whether you are an expat in Gibraltar or Spain, Blacktower FM can help you make the most of your investments, pensions and savings wherever you reside.
Contact your local office for wealth management advice in Gibraltar or any one of our four regional Spanish offices in Barcelona, Costa Blanca, Costa Cálida and Costa del Sol today.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Portugal offers an attractive regime of taxation to European Nationals considering a move here.
Over the years, the trend for South African nationals to seek out new lives and experiences in Portugal has continued to grow and grow; I myself made the move back in 1988 as a fresh-faced economics graduate from Witswatersrand University in Johannesburg, and I’ve never looked back. It’s easy to see the appeal for South Africans – the year-round sunshine and vast expanses of Atlantic coastline are a familiar part of daily life, just as they are back home – but the secure location and easy access to the rest of Europe is something really special. Being as there’s over 11,000 KM of distance between the two countries, a mere 12 hrs by plane give or take, there are going to be some big differences in the way of life, even if there are those obvious similarities. It’s probably advisable for any emigrant to arrive armed with a willingness to accept how things are done in their new home country rather than try to carry on as before and hope for the best. This is never more true than when dealing with your finances.