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Spain residency - tax precautions

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Dec 15, 2020
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I'm getting a residence permit in Spain now. Don't plan to live there, but Barcelona is nice, I usually spend 3-4 months a year there, also my passport does not let me travel to Schengen visa-free so residence permit would be helpful.
I'm going for the golden visa - buying commercial real estate. No requirement to spend any time in Spain.

I really don't want to become a tax resident. Really don't want to :)

I had a chat with a couple of lawyers, apparently all fine, but just to be sure wanted to ask here.

I'm buying commercial, not residential, and will rent monthly/AirBnb, so no permanent home in Spain. I also own residential at other country.
Not going to spend more than 183 days, traveling by plane so there are proofs.
No kids, my gf does not live in Spain.
No business in Spain except renting out one commercial property, business at other countries.
I plan to file declaration in Spain using the non-resident form (ticking "non-resident" or whatever they have) to pay taxes on rental income, so the Revenue Service knows that I'm not just ignoring tax obligations.

Lawyers told me that if revenue service starts to ask questions the easiest way to deal with that would be to demonstrate tax returns from other country which I can do.

What do you think guys, I should be in clear? Pretty sure yes, but maybe I'm missing something.
 
Ok



Why this visa then? conf/(%

You don't want to instead follow 90/180 days rule?
I'm Russian. Don't live there since I was 20 y.o. but still. Earlier I was fine applying for tourist visas once in 5 years, now I hardly can get 1 year visa. 90/180 was a nuisance, albeit small. @polonieth is right regarding access to Schengen. Also getting residence permit in EU takes me out from blanket Russian-nationals sanctions-related restrictions.
Most other residency permits require one to actually reside there, this "golden visa" doesn't, so I chose it.
 
Ok I see. Makes sense now.



Does it also take you out of the below sanctions when entering and leaving the EU? :confused:

Personally I wouldn't choose to live somewhere so hostile to a passport I hold but each to their own.

https://www.rt.com/news/582721-eu-seizure-phones-cars-russia/
Nope it does not. But so far there were just cases of confiscated cars at German customs, nothing more at all, so I consider it to be a legal quirk. Also I mostly use my second passport, so no unwanted attention except when bureacracy involved. If they start implementing it, confiscating my shaving cream on entry, I will reconsider :)
 
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I was reading some Spanish court cases / decisions lately. People suing tax authority trying to insist they are not tax residents. I really didn't like what I read. The judge didn't look impartial to my taste. "The person holds a bank account in our country which is an important indicator of economic interest. The balances went up during the year which shows continuing investment in our country". The poor guy goes "Hey, I have lots of bank accounts in different countries, does it make me a tax resident of all of them?" and judge: "The person claims to hold other bank accounts but did not prove that with bank statements translated by a sworn translator" Very weird ideas to me and very weird bureaucracy.

Also, "Tax authority presented their point of view regarding your position as tax resident and supported it with documents. Now by law it is your obligation to present your position and satisfy the court that it is stronger". As far as I understand, the tax authority didn't need to convince anybody that their arguments make any sense...

The quotes are not exact, just by memory, but it didn't seem fair to me at all. I was reading about Spain in this forums (generally nobody likes Spain here) and thinking "C'mon, could not be too bad". Well, now I join the people who recommend to stay away from Spain. I spent a lot of time going with the golden visa program and possibly bought a lot of headache... The tax office can declare me a tax resident for any reason and I will have to prove otherwise in a court which is keen to agree with the tax office. Tax rates are high. Stay away from Spain if you are rich / entrepreneurial! It's not welcome there.
 
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