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.

 

BUYING A PROPERTY IN SPAIN THROUGH A COMPANY DOMICILIED IN GIBRALTAR

 

 

Additional information. Article footer

Álvaro Morales Sousa, Partner, TempleCambria Lawyers

(+34) 956 440 172      enquiries@templecambria.com

 

Please note that any information provided through TempleCAMBRIA’s blogs, website or social media pages is for informational purposes only and should not be used as the basis for making any particular decisions. Please remember that legislation and case law can change over time and the articles published through this medium may not be up-to-date, which is why we recommend you seek individual specialist advice. TempleCAMBRIA law firmprovides legal services to international clients who have become enamoured with the Costa de la Luz. Our job is to ensure that their decision to settle down or set up business here is a successful one, and that their time here becomes the best experience of their lives.