Be careful with the 183 days per year! Even if you leave in between, their tax agency considers you a resident if you visit twice in a year for a period longer than that (which is about half a year). They track your card and banking transactions. Just ask Shakira.
Spain is like the dream of most people in terms of the place for living, but on the other side it's a nightmare when it comes to taxation. And while i'm dreaming about Spain i want to ask: 4:40 Is it just an overall requirement for the jurisdiction (i.e. money should come from a country which has a min 10% corp tax rate - no BVI, Seychelles, Belize etc), or the rules mean that subsidiary company should've already paid at least 10% tax in that jurisdiction before transfering money to the Spainish parent company? Which means that if subsidiary have paid less than 10% in its country (e.g. Gibraltar's offshore company or Romanian 3% tax company, etc) - then participation exceptions won't apply...
@@MichaelRosmer Thanks for clarification! Would love to see a video with your genius view regarding some jurisdictions which are not heavily discussed. Such as: Canary Islands Spain Madeira Portugal Curacao Holland For what types of businesses they might be good, are there ways to use them together with EU-holdings in order to bring money tax-free in the EU, some restrictions which may occur, etc.
I would like to move to Spain for the great climate and the expedited 2 year residency option for citizenship for certain nationalities. I plan on working as a remote web developer for a company in the US, while living in Spain. I still have to do more research on the taxes, but already know that Spain and the US have a totalization agreement to avoid double taxation for Social Security. Great video and thanks a lot!
@@OffshoreCitizen (not OP…) perhaps talk about the 183 day rule (it’s crazy, they don’t count if you leave; also see Shakira’s case). Bureaucracy nightmares and lawyer costs (it’s common to get stuck even with the proper paperwork, and then some sleazy lawyers keep you in this loop to scalp as much as possible money) Empadronamiento at the municipality is the one that counts for citizenship. And it’s tricky as the owner of the residence has to be registered (many aren’t) and has to authorize you (they might lose rights for government social programs). But you can do it even without a visa! Illegals do it and in 3? 10? Years they apply to citizenship… ridiculous A lot of Eastern Europeans buy €500k in real estate and get a residence visa, no questions asked about source of the money… It’s enraging how doing things the right way and paying taxes is much harder than what illegals and money launderers have to do grrr Also note residency year starts at date of entry or empadronamiento, but tax year is calendar year. This brings complications or benefits. Upsides: decent Amazon catalog and Prime service, well connected airports Note mortgage rates are very good and for small properties you get a good return of investment… but squatting laws are scary, mind the jurisdiction! (Avoid Catalonia, Madrid, and the south)
Thanks when it comes into full effect in its final form I definitely will do. Mostly I avoid talking about legislation before it comes out because it might change by the time they implement it
@@OffshoreCitizen Makes sense. I look forward to if and when it passes. The requirement to only own 25% of the company and the need for a foreign office would also be eliminated according to the approved draft. If that is the case then real estate values in the major expat hubs will have sharp increases.
Cool vidéo mate ! Spain is a very attractive place with awesome weather and decent prices for European country. Hoping you do an update on it in the future
The Spanish bureaucracy is a nightmare. They often mess up and even if you appeal they’ll find some other excuse to rebuff you. Get a good lawyer before you do anything. And sadly most lawyers are pretty bad, too. They just want to keep getting you stuck to charge you more and more money.
What about Spain and countries that have double taxation treaties with it? If the primary establishment of income is based in the other country, does it mean the individual can be exempt from paying Spanish taxes?
@@OffshoreCitizen thank you. I assume there's no two ways to look at it since Spain requires a 6 month stay for Golden Visa, which means applicants are automatically tax residents.
Well you have to actually have operations and management in Canary to benefit, if so then in theory on the corporate side at least yes I'll maybe make a video about it soon Of course there's always other options but if you're in Spain as an individual you're taxable there and for corporate there's other options but they require the scale to justify
Good stuff thanks... oof but that background noise. I'll check out the other videos. I'm planning to move to Spain because my wife's family there but what concerns me is the TAX.
Be careful with the 183 days per year! Even if you leave in between, their tax agency considers you a resident if you visit twice in a year for a period longer than that (which is about half a year).
They track your card and banking transactions. Just ask Shakira.
Spain is like the dream of most people in terms of the place for living, but on the other side it's a nightmare when it comes to taxation. And while i'm dreaming about Spain i want to ask:
4:40
Is it just an overall requirement for the jurisdiction (i.e. money should come from a country which has a min 10% corp tax rate - no BVI, Seychelles, Belize etc), or the rules mean that subsidiary company should've already paid at least 10% tax in that jurisdiction before transfering money to the Spainish parent company?
Which means that if subsidiary have paid less than 10% in its country (e.g. Gibraltar's offshore company or Romanian 3% tax company, etc) - then participation exceptions won't apply...
So generally it's supposed to have actually paid the tax but this doesn't apply for EU countries so Romania is ok.
And yes 100% agree I love Spain in so many ways but it's a bureaucratic disaster for tax etc terrible place on that regard.
@@MichaelRosmer
Thanks for clarification!
Would love to see a video with your genius view regarding some jurisdictions which are not heavily discussed.
Such as:
Canary Islands Spain
Madeira Portugal
Curacao Holland
For what types of businesses they might be good, are there ways to use them together with EU-holdings in order to bring money tax-free in the EU, some restrictions which may occur, etc.
@@maverick5646 thanks! Sounds good definitely will do
If I make 10Million USD on my personal stock account in America, do I have to pay 5million to the spanish government...lol. ridiculous
Pretty much yeah unless you can structure otherwise
I would like to move to Spain for the great climate and the expedited 2 year residency option for citizenship for certain nationalities. I plan on working as a remote web developer for a company in the US, while living in Spain. I still have to do more research on the taxes, but already know that Spain and the US have a totalization agreement to avoid double taxation for Social Security. Great video and thanks a lot!
Great video, I hope you do an update on this one!
Thanks. Will do, stay tuned :)
Anything else you'd like to see?
@@OffshoreCitizen (not OP…) perhaps talk about the 183 day rule (it’s crazy, they don’t count if you leave; also see Shakira’s case). Bureaucracy nightmares and lawyer costs (it’s common to get stuck even with the proper paperwork, and then some sleazy lawyers keep you in this loop to scalp as much as possible money)
Empadronamiento at the municipality is the one that counts for citizenship. And it’s tricky as the owner of the residence has to be registered (many aren’t) and has to authorize you (they might lose rights for government social programs). But you can do it even without a visa! Illegals do it and in 3? 10? Years they apply to citizenship… ridiculous
A lot of Eastern Europeans buy €500k in real estate and get a residence visa, no questions asked about source of the money…
It’s enraging how doing things the right way and paying taxes is much harder than what illegals and money launderers have to do grrr
Also note residency year starts at date of entry or empadronamiento, but tax year is calendar year. This brings complications or benefits.
Upsides: decent Amazon catalog and Prime service, well connected airports
Note mortgage rates are very good and for small properties you get a good return of investment… but squatting laws are scary, mind the jurisdiction! (Avoid Catalonia, Madrid, and the south)
Yeah.. I would want to buy a big house and live under spanish sun if they don't come after my income in America...
Sadly Spain is the California if Europe
Yes they will hunt you down to the last penny. Spain is bankrupt.
37%! Yikes...I think I'll just visit.
You should do a video on the Startup Act, which aims to simplify the Beckham Law, increase it to 11 years and reduce the tax to 15% !!!
Thanks when it comes into full effect in its final form I definitely will do. Mostly I avoid talking about legislation before it comes out because it might change by the time they implement it
@@OffshoreCitizen Makes sense. I look forward to if and when it passes. The requirement to only own 25% of the company and the need for a foreign office would also be eliminated according to the approved draft. If that is the case then real estate values in the major expat hubs will have sharp increases.
Cool vidéo mate ! Spain is a very attractive place with awesome weather and decent prices for European country. Hoping you do an update on it in the future
It sure is!
Definitely will do ☺
What cities have you visited in Spain?
@@OffshoreCitizen I Did visited Barcelona in the past then Malaga and Marbella this summer . Definetely nice places to go at least for holidays
The Spanish bureaucracy is a nightmare. They often mess up and even if you appeal they’ll find some other excuse to rebuff you. Get a good lawyer before you do anything. And sadly most lawyers are pretty bad, too. They just want to keep getting you stuck to charge you more and more money.
What about Spain and countries that have double taxation treaties with it? If the primary establishment of income is based in the other country, does it mean the individual can be exempt from paying Spanish taxes?
No it usually doesn't work that way
@@OffshoreCitizen thank you. I assume there's no two ways to look at it since Spain requires a 6 month stay for Golden Visa, which means applicants are automatically tax residents.
Is there a potential for utilising canary zec especially after 6 years under Beckham regime?
Well you have to actually have operations and management in Canary to benefit, if so then in theory on the corporate side at least yes
I'll maybe make a video about it soon
Of course there's always other options but if you're in Spain as an individual you're taxable there and for corporate there's other options but they require the scale to justify
Good stuff thanks... oof but that background noise. I'll check out the other videos. I'm planning to move to Spain because my wife's family there but what concerns me is the TAX.
The nature view 🙌 could be worth the ~23% capital gain tax 😉