Double taxation agreement in Spain
The double taxation agreement consists of a treaty agreement between countries worldwide where an accord has been met for the taxation of their citizens, with the general idea being that people only have to pay certain taxes in one country and not two.
The double taxation agreements will depending on the two countries in question, in this case Spain is the protagonist country. Spain has signed a number of treaties with various countries to make taxations a little easier for people want to either live, work or invest in Spain. The concept is the stop people getting taxed twice on the same thing, like a pension or a savings account.
As already mentioned depending on the country to which you reside in or still have ties to, will depend on the particular condition that Spain has agree upon with that country.
If you are looking to invest in Spain, then you should inform yourself as to the taxation rules and regulations not only in Spain, but with your current country. Most information about the general terms can be quite clear; however it is the little details that usually hit people by surprise. While the double taxation treaty is meant to avoid taxes being paid twice, it does not apply to everything and it does not mean you personally get to choose what is to be taxed where, this will come down to the treaty terms. This is why it is advisable to consult a legal and financial professional to help inform you correctly of the right way to go about taxation in Spain. This will also help you plan your taxes knowing what payments you should bear in mind for the financial year.
ABAD law and accounting firm can help to inform you of all the requirements needed for your personal situation, whatever that may be, as well as being able to create a personalised financial planning , with our financial representative service.