Company in Spain

[iamfromthere]

Hello,

I have an IT consulting company in Spain and my clients are in France.

Is there a good option to lower the taxes?

Thanks

 

[Martin Everson]

Yes there is luckily.

If you live in Spain then leave......The End.

 

[iamfromthere]

Why is that? Can you please give a bit more details?

 

[Don]

I can offer some general information that may be helpful for your situation noting that it's important to consult with a professional tax advisor or accountant for personalized advice on your specific circumstances.

That being said, there are a few options you may consider to potentially lower your tax burden:

1. Double Taxation Treaties: Spain and France have a double taxation treaty in place, which is designed to prevent taxpayers from being taxed twice on the same income. Ensure you are utilizing the benefits of this treaty to avoid double taxation on your income generated in France.
2. Optimize your business structure: The choice of your business structure, such as a sole proprietorship, partnership, or corporation, can have a significant impact on your tax liabilities. You may want to consult with a tax advisor to determine the most tax-efficient structure for your specific situation.
3. Deductions and credits: Make sure you are taking advantage of all the available deductions and tax credits, both in Spain and France. These may include deductions for business expenses, investments, and research and development activities.
4. Transfer pricing: If your company operates in multiple countries, you may need to consider transfer pricing regulations, which are designed to ensure that transactions between related entities are conducted at arm's length. By carefully managing and documenting your intercompany transactions, you can potentially minimize your tax liabilities.
5. Consider hiring local staff: Hiring local employees in France may provide you with access to additional tax incentives and deductions, such as those related to job creation, training, and social security contributions.

Again, it is essential to consult with a professional tax advisor or accountant familiar with the tax laws in both Spain and France to ensure you are making the most informed decisions for your specific situation.

 

[Marzio]

Is there a good option to lower the taxes?

If you have at least 3 full time employees you could move to Canary Islands and become a ZEC entity, this will allow you to reduce CIT to 4%

Or, if you don't have that much employee you could move to Ceuta or Melilla and pay 50% off regular CIT.

 

[scooterguy]

Why is that? Can you please give a bit more details?

Spain is a tax hell, that's why. Leaving the country is usually the only solution to lower taxes. You can always spend your summers there.

 

[Martin Everson]

Why is that? Can you please give a bit more details?

Sure. Here are 3 good reasons.

1. Taxman
2. Taxman
3. Taxman

 

[Mary P]

Today, there are plenty of jurisdictions that allow you to use the conditions of 0 corporate tax. If you are interested in Europe - it could be Estonia, which also provides zero corporate tax. In addition to European jurisdictions, there are plenty of around the world. If you are interested, we can go to negotiate in private messages.