Hi!
Now the company is registered in Madrid and providing the digital services. I was thinking about relocating the head office to Tenerife, invest EUR 100.000, relocate some stuff to Tenerife and hire a director there. The shareholder and most of the team will stay in Madrid. Madrid company will own the company in Tenerife. Tenerife will invoice clients, pay 4% of the CIT and later distribute the dividends to Madrid company at the rate of 5%. In this case Madrid company will not pay tax on this amount of income at all. What do you think about this structure? Or maybe you know some better options for structuring a business in Spain?
Now the company is registered in Madrid and providing the digital services. I was thinking about relocating the head office to Tenerife, invest EUR 100.000, relocate some stuff to Tenerife and hire a director there. The shareholder and most of the team will stay in Madrid. Madrid company will own the company in Tenerife. Tenerife will invoice clients, pay 4% of the CIT and later distribute the dividends to Madrid company at the rate of 5%. In this case Madrid company will not pay tax on this amount of income at all. What do you think about this structure? Or maybe you know some better options for structuring a business in Spain?
