If you’re a US expat living in Spain or a Spanish citizen or green card holder, you may be surprised to learn that you have filing obligations in both countries. You’ll need to file federal and state tax returns, as well as pay social security and Medicare taxes in Spain. You’ll also need to report and pay taxes on certain income in the US, including interest and rental income.
If the total amount of your assets is less than 700,000 euros, you won’t need to pay wealth tax in Spain. However, if your assets are worth more than that amount, you will need to file a Modulo 720 and a wealth tax return each year. This form will require you to list your total assets (along with their value), and your exemptions and allowances.
We’ll help you determine which asset-related taxes you’re liable for in Spain, and how to file them. We can advise you on the best ways to manage your taxes, and how to reduce your liabilities by using tax credits and deductions available to you.
GD Global Mobility can help you navigate the complex Spanish capital gains tax regime, which was amended in January 2015. We’ll advise you on the optimum time to sell assets to mitigate your UK and Spanish liabilities, and on the tax benefits you can claim under this new scheme.
Like the US, Spain maintains a social security system funded by contributions from both employers and employees. For workers displaced to Spain, the country’s law establishes a special regime for taxable income. We can help you understand this regime, and assist with the preparation of any required documentation.
The US and Spain have a double tax treaty, which sets out rules for which government can tax a specific person’s income. This helps to avoid the risk of double taxation, and it can also provide some beneficial relief, such as reduced withholding rates on dividends and interests.
Spain’s transfer pricing rules are generally in line with the OECD guidelines. The country allows the use of three different methods for applying these principles: cost plus, resale price, and transactional net margin. We can help you choose the right method for your business, and prepare all necessary documentation. We’ll also ensure that you comply with all the necessary filing deadlines. We can also assist you in negotiating with the Spanish tax authorities if you have unresolved issues. tax advisor spain