Special Tax Scheme for individuals moving to Spain from abroad, becoming tax resident in Spain.
The main advantage of this Scheme is that qualifying individuals are taxed at a flat rate of 24% of their salary received worldwide; whilst investment income and capital gains realized outside Spain are tax exempted and can be remitted with no additional taxation.
- Up to €600,000.00 and 47% over €600,000.01
- Investment income and capital gains obtained in Spain are taxed between 19% and 28%.
The requirements are:
For this scheme, at Manor Tax we are able to liaise with your employer if necessary.
Special Income Tax Scheme for those employees expatriated/travelling to other countries whilst maintaining their status as Spanish residents.
This scheme allows these individuals to receive their salary tax free, up to a limit of €60,100.00 per annum, for the portion accrued during the days spent abroad.
The main requirements to qualify for the Scheme are the following:
Once an individual has qualified, the Spanish Tax Authorities impose strict procedural criteria in order to benefit from these tax advantages.
Complying with such criteria can be quite onerous. Typically, Manor Tax assists both the company and the employee in dealing with the Tax Authorities thus ensuring these tax incentives are not jeopardized due to non-compliance with procedures.
Becoming resident in Spain, investing in Spain or just being appointed as Director of a Spanish company, requires an individual to be registered in Spain by obtaining an identification number.
Obtaining this number is often a very bureaucratic process; however, Manor Tax is able to act on the client’s behalf via a simple power of attorney.
Spanish local authorities require individuals to register in the municipality where they are resident. Being registered is mandatory for contracting utility services, rental contracts, residents parking, registering with a doctor, etc.
We can assist our clients in dealing with their local authority.
Manor Tax can coordinate all the necessary documents for obtaining clients’ Social Security numbers and Public Health Insurance.
Property services and Golden Visa
Typically, foreign investors limit their property search to a couple of big estate agents who have the capability to deal with international clients. Manor Tax is able to facilitate far greater market penetration by providing access to a wider range of market participants; many of whom are important players in the real estate sector but only have local capabilities at personnel level.
Non-EU citizens are able to obtain a resident visa when investing at least €500,000.00 in Spanish real estate. Other investments in Spanish companies or Spanish public debt also qualify if at least €1 million or €2 million respectively. We have the expertise on assisting our clients obtaining the Golden Visa and can integrate this service with the Property Brokerage if required.
Manor Tax can assist all aspects of conveyancing for clients’ property purchases.
Manor Tax can assist our clients in opening accounts with local banks and administrating this relationship if required.
Manor Tax has an extensive network of Spanish mortgages providers and can facilitate our clients’ interaction with them.
Succession and wealth planning
Spanish inheritance tax rules are quite complex and the tax computations depend upon the relationship between the deceased and the beneficiaries, subject to regional variations.
We can check the tax implications and find out the most tax effective alternative for our clients.
Before investing in Spain, it is worth to compare different scenarios and the consequences depending on the investor, the jurisdiction where the investor is based and other key factors.
We have an extensive experience in structuring foreign investments in Spain.
Preparation and submission of tax returns
Consult us on any legal matter about Spanish and international tax, relocation services, bookkeeping...
Please note the content of this website is for general interest only and it does not constitute any advice. No liability is accepted in connection with it. You should only act or refrain from acting after professional advice on the facts of your case. This website does not constitute any kind of legal or tax advice.