Spain has become one of the most attractive jurisdictions in Europe for setting up startups, thanks primarily to the tax benefits available to these companies, their partners, and their employees. These advantages help them become more competitive in the market.
Since 1995, Spain’s ETVE (Entidad de Tenencia de Valores Extranjeros) regime has provided an appealing tax structure for managing foreign investments. ETVEs allow minimal taxation on dividends and capital gains, taking advantage of Spain’s extensive double taxation treaties. This regime benefits investors by enabling efficient repatriation of funds and reducing overall tax liabilities.
There are different reasons why a company can be subject to a tax inspection: excessive VAT refunds, discrepancies between quarterly and annual models (…), or commonly for random reasons.
The tax regulation in Spain (Royal Decree 1619/2012) establishes the language and currency to invoice. The language of invoices The company can issue and receive invoices in any of the …
Non-resident companies that own real estate in Spain are subject to the non-resident income tax by means of a special tax payable on 31 December of each year and which must be paid in January of the following year.
In Spain, subjects obliged to withhold and pay tax to the Spanish Treasury are paymasters. The issuer of an invoice is not required to inform paymasters whether or not they are subject to the withholding tax or the percentage to be withheld. The person responsible to the Spanish Treasury is the one who receives the invoice, not the one who issued it.
From 1 January 2017, large companies and professionals registered in the VAT Refund Special Regime will be required to use the new system for registering VAT books through the electronic office of the Spanish Tax Administration Agency.
In order to fight tax evasion only foundations respecting legal requirements will be entitled to receive subsidies and fiscal advantages in Spain.
In September 2014, the Spanish government adopted a law to support entrepreneurs; fifteen months later, it is considering adopting seven new measures that will simplify the administrative steps for granting this golden visa or residential permit in Spain.
One of the most important novelties introduced by the reform of the Law on Income Tax in Spain concerns the VAT taxation of a company’s partners engaged in professional activity.
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