Spain double tax

[Evi]

Hi!

Spain determines a tax resident as anyone who has economic interests in Spain.
Thus, if you have business in Spain and it is impossible to relocate it to the other country, the main source of income will be in Spain.
What is the best country to relocate in this case?
If for example I relocate to Panama or Cyprus, how my income will be taxed: dividends, crypto etc?
I will still have to pay everything in Spain at the tax rate of a resident or non-resident rate?

 

[Martin Everson]

What is the best country to relocate in this case?

Relocate what to? Yourself or your business.

If for example I relocate to Panama or Cyprus, how my income will be taxed: dividends, crypto etc?

Spain has exit taxation so depending on your personal financial situation and how long you have been in Spain you may be taxed on the way out. I discussed this in other threads. Moving to a low tax country should not just be a decision based on tax but on access to good banking and financial services etc which is not often possible when resident in certain countries (I know this first hand sadly).

I will still have to pay everything in Spain at the tax rate of a resident or non-resident rate?

Depends on many factors including DTA between Spain and other country.

 

[Xshore]

Spain determines a tax resident as anyone who has economic interests in Spain.

I don't think this is correct, they write having your "main base or centre of activities or economic interests", I read it as main base (...) of economic interest. So if you live in another country and have that other country as your main base of economic interest then you can still have a company in Spain without being personally tax resident there.

 

[Evi]

Relocate what to? Yourself or your business.



Spain has exit taxation so depending on your personal financial situation and how long you have been in Spain you may be taxed on the way out. I discussed this in other threads. Moving to a low tax country should not just be a decision based on tax but on access to good banking and financial services etc which is not often possible when resident in certain countries (I know this first hand sadly).



Depends on many factors including DTA between Spain and other country.

could you please share the threads where you discussed Spain exit tax?

 

[Martin Everson]

could you please share the threads where you discussed Spain exit tax?

Sure...

Renouncing tax residency (Spain) - still liable for tax after I leave?

Hi guys. I am currently resident in Spain, and having made realised gains in crypto and using algorithmic trading (lots of small trades with small profits, ie. taxable events) I realise I already will need to pull my pants down for the Hacienda. Looking to the future, I would prefer not to be...

www.offshorecorptalk.com

Source....

Exit tax in Spain: what it is and how to escape the "tax trap" - SpainAdvisers

Whenever a Spanish high income earner considers changing his residence, he faces the same problem: the well-known “exit tax” or “Departure Tax”. It is not a specific tax per se, but an additional obligation of taxation of the Personal Income Tax (hereinafter, IRPF). This obligation was...

spainadvisers.com