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Best fiscal scheme living in Spain (Software Development + Crypto Trading)

D

DraKuSoR

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Mar 20, 2023
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#1
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Hello everyone,

I'm new on this forum and I've been reading a lot of different threads with different schemes/solutions. I wanted to ask if someone knows or knows anyone that can help with my issue:
Currently I'm freelancer in Spain providing Software Development services for US Comapny, and I also to crypto trading.
  • 600€ per month to be freelancer
  • Tax Rate between 19%-44% based on total income of the year. In my case around 35%-37% would be this year.
  • I don't have to be a VAT payer since I provide service to outside of Europe.
  • For the crypto trading I declare it as a physical person in Spain, between 19%-28%
I'm in the next process, (suggested by a company that manages the creation of fiscal schemes):

  • UK LTD that is only a Holding (I won't provide/do anything in this company, just receive dividends)
  • Romanian SRL (Micro), currently the income tax is 1% and I should have an employee (around 9k per year costs)
  • I would to both, Software Development services and crypto trading from this company, and the benefits would go yearly to the LTD.
I wanted to ask, would this be correct? I'm not complying with any of the CFC rules, is there any better solutin?

Thank you!
 
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#2
Run away from Spain until you can and change your advisor.
The scheme you were proposed is just tax evasion and will eventually put you in big troubles with Spain.
 
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#3
JohnnyDoe said:
Run away from Spain until you can and change your advisor.
The scheme you were proposed is just tax evasion and will eventually put you in big troubles with Spain.
Click to expand...
Yeah.. I was supposing that, because the more I investigate the more I see issues in this plan. Do you know any legal solution, or living in Spain the best is to open here a company an pay 25% tax income.
 
#4
DraKuSoR said:
Yeah.. I was supposing that, because the more I investigate the more I see issues in this plan. Do you know any legal solution, or living in Spain the best is to open here a company an pay 25% tax income.
Click to expand...
Yes, use a local company, keep costs low, and try to save money to finance your relocation (which you would have easily covered with the annual cost of the solution you were proposed).
 
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#5
DraKuSoR said:
I wanted to ask, would this be correct? I'm not complying with any of the CFC rules, is there any better solutin?
Click to expand...

Sounds like your advisor was same one who helped Shakira and that did not go well...lol. Just leave Spain and call it a day and only go back if your broke or terminally ill. Thank me later.
 
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#6
Martin Everson said:
Sounds like your advisor was same one who helped Shakira and that did not go well...lol. Just leave Spain and call it a day and only go back if your broke or terminally ill. Thank me later.
Click to expand...
Ideally I'd like to leave Spain, but is not an option currently. What is wrong with the scheme is proposed? From what I know I comply with the CFC rules because I have an office and employee in the Romanian SRL.
 
#8
If you want to reduce taxes, do the Romania thing but actually move there, and spend only 6 months a year in Spain, or less if you can.

If you do want or have to live in Spain, you just have to accept those levels of taxation. It doesn't matter if you have an employee or 'comply with CFC rules'. When the clear intention is to evade tax, that's what Hacienda will take into account.

The good news about Spain is that you won't go to jail unless you evade over 120K EUR, but they will find your little scheme and fine you like there's no tomorrow.

So, three options:

1) Get over it. You want to live in Spain, pay taxes, and sleep soundly at night after a good glass of sangría.

2) Move.

3) Evade tax. Get paid in crypto, hide accounts in foreign countries through a variety of tricks, etc. It's risky and there's a high chance you'll get caught eventually, but if you like the thrill, and the evaded amounts are below 120K... I don't recommend this though, but one cannot deny that the option is still there and Hacienda loves playing these little games.
 
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#9
Why is that bad idea if person wants to live in spain - pay there taxes as a person and open a company in other country and pay corporate tax in other country and dont withdraw dividends, just spend corporate income on buying property on behalf of the company? I dont think that looks like something out of law
 
#11
DraKuSoR said:
Hello everyone,

I'm new on this forum and I've been reading a lot of different threads with different schemes/solutions. I wanted to ask if someone knows or knows anyone that can help with my issue:
Currently I'm freelancer in Spain providing Software Development services for US Comapny, and I also to crypto trading.
  • 600€ per month to be freelancer
  • Tax Rate between 19%-44% based on total income of the year. In my case around 35%-37% would be this year.
  • I don't have to be a VAT payer since I provide service to outside of Europe.
  • For the crypto trading I declare it as a physical person in Spain, between 19%-28%
I'm in the next process, (suggested by a company that manages the creation of fiscal schemes):

  • UK LTD that is only a Holding (I won't provide/do anything in this company, just receive dividends)
  • Romanian SRL (Micro), currently the income tax is 1% and I should have an employee (around 9k per year costs)
  • I would to both, Software Development services and crypto trading from this company, and the benefits would go yearly to the LTD.
I wanted to ask, would this be correct? I'm not complying with any of the CFC rules, is there any better solutin?

Thank you!
Click to expand...
Did you find a solution to this? I am in a similar situation.
 
#17
Marzio said:
Is Spain your ultimate destination or do you plan to move in the future?
Click to expand...
I am open to moving so I would like to see what my options are in Spain or in other European countries.
 
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