Since March 2021, Gibraltar is no longer a tax haven under Spanish legislation. Anti-tax avoidance rules for tax havens therefore no longer apply, for example the Gravamen Especial sobre los Bienes Inmuebles de las Entidades no Residentes (special tax on the property of non-resident entities) (for more information about this tax please click here).
However, the agreement signed with the UK sets out a series of rules under which entities incorporated and run in Gibraltar will be considered tax residents in Spain:
- When the majority of its assets, directly or indirectly owned, are located in Spain or consist of rights that can or should be exercised in Spain;
- When the majority of the income accrued within the tax year comes from Spanish sources;
- When the majority of the individuals in charge of the effective management are tax residents in Spain;
- When the majority of the share capital or equity, voting rights or profit-sharing rights are held directly or indirectly, either by individuals who are tax residents of Spain, or by legal entities, entities or other instruments or legal forms linked to tax residents in Spain.
These rules should be considered when incorporating a company in Gibraltar and then buying a property in Spain.
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Álvaro Morales Sousa, Partner, TempleCambria Lawyers
(+34) 956 440 172 email@example.com
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