Gibraltar to give information to the Spanish Tax Office

The tax treaty between Spain and the UK re-Gibraltar which appears to come into force in the near future. The Spanish government and the government of Gibraltar will now share tax information, conduct due diligence and share information about the companies and individuals working in Gibraltar. It’s aim is to avoid double taxation. The information exchange could be retrospective to 1st January 2014 and in certain circumstances back 1st January 2011.

The principle points of the treaty are;

1.For individuals the #treaty will determine where they are tax #resident, they will tax resident in Spain if they spend more than 183 nights a year in Spain, if the spouse, parter or family are resident in Spain, if your only home is in Spain or 2/3 of your assets are directly or indirectly in Spain. If you are a foreigner who is tax resident in Spain and you want to move to Gibraltar you will still be considered as tax resident in Spain for the current year and the next 4 years.2. 2.

2. Trans border workers. Spain and Gibraltar will share tax information about workers who are resident in one place and work in another. E.g. if you a have an asset e.g. a car registered in Gibraltar but you are tax resident in Spain, you’ll pay tax on this asset in Spain.

3. Companies. If you have created a company in Gibraltar then company will be considered as resident for Spanish tax when the company has a significant relationship with Spain e.g. the largest part of the assets of the company are directly or indirectly in Spain. Also when the largest part of the company income is received in Spain, and the largest part of the Management are located in Spain. Also if the largest part of the capital assets are directly.or indirectly controlled by people who are Spanish resident.

4. Access to data held in Gibraltar. Spain will have free and direct access to the company trade registry and the cadastro located in Gibraltar, also any kind of public information regarding, property, trust and beneficiaries if they are a Spanish tax resident.

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