Our lawyers got a vast knowledge in all matters
regarding foreign investment in Spain. We can deal all minor and major issues
and successfully advice on both general and particular ones. We belive that
Spain is a premium destiny for investment, with interesting opportunities and
being also a sustainable bridge to LATAM. Indeed we are very proud of being
Iberoamericans and masters in law practice across the pond. Let our lawyers to tell you more about our
LATAM expertise in our Latinoamérica blog, here.
Right now, according to ICEX
information, Spain is the
10th-largest exporter of commercial services worldwide, 4th in the EU, and the
18th-ranked exporter of merchandise trade. Over 12,500 foreign companies are currently located in
Spain across all economic sectors
and 70 of the
FORBES Top 100 companies have branches in Spain according to Thomson Reuters.
It is necessary to bring attention to
Special Purpose Vehicles in Spain, highlighting the ETVE (Foreign
Securities Holding Companies) company form, ellegible for a privilege tax treatment that
we can resume in:
1. They benefit from a Special Tax Regime applicable to
Holding companies.
a) No taxation
on paid-in dividends.
b) No taxation
on paid-in capital gains.
c) No taxation
on paid-out dividends/gains.
d) Stable and
reliable regime.
e) Wide tax
treaty network (88 treaties to avoid double taxation).
2. The
attractiveness of ETVEs goes beyond the pure Tax Holding Regime. The ETVE
regime is an opportunity for international investors to channel their outbound
investments (in Europe, LATAM and other countries) through Spanish HoldCos.
On the other hand, we must highlight the
SOCIMI (Spanish REIT´s) company form, which are enjoying a significant boom in
Spain due to important tax benefits and the economic rebound of the Spanish
property market.
This
special regime was introduced in 2009 (Act 11/2009) with the purpose of
relaunching the real estate sector. This legal framework was softenedby
means of amendments in 2010 and 2012.
This kind of companies are ellegible
to be taxed at
0%, although the transfer of assets linked to the business activity once the
maintenance period is reached and the income obtained from the lease of urban
real estate that has failed to fulfil the maintenance requirement are taxed at
the general tax rate (which is 28% for fiscal year 2015 and 25% for fiscal year
2016 and onwards). However, the company will be subjected to a 19% special tax
rate on the dividends distributed to shareholders owning a participation of at
least 5%, when such dividends are exempt or taxed under a 10% rate at the
shareholder level, unless the shareholder is another SOCIMI.
Dividends
and other profits distributed by SOCIMI, whether listed or not, are subject to
the corresponding withholding tax, regardless of the nature of the shareholder
(individuals, legal entities, resident or not). However, from 2014, no
withholding tax is due when the shareholder is another SOCIMI.
For
over 30 years we have helped companies doing business in Spain and LATAM. For
us you are not just one of the bunch, we are experts on bespoke solutions. We
advice companies and entrepreneurs on corporate, mergers & acquisitions,
finance law, contracts, taxation, transfer pricing,
compliance, IP and labor law.
We
are lawyers & tax advisors in Málaga, Madrid, Chile,
Perú, El Salvador, United Kingdom and Switzerland offering quick
solutions and expert advice. We are able to advise in more than 50 countries.
At Evolutiza
Abogados & Asesores Tributarios we all work for
your business to be the key piece of the
big jigsaw.
Call us to 0034 911 697 113 or email us to info@evolutiza.com.es
Be
strange but don´t be a stranger