Tax Planning

For people relocating to Spain, the mild climate, peaceful lifestyle and friendly people are often the main reasons for choosing Spain as their new home. However, it is frequently only discovered too late that, once Spanish tax residence is established, worldwide income must generally be declared and taxed in Spain, which in many cases may lead to significant consequences or even the decision to return to the country of origin. In order to allow you to make an informed decision regarding your future main residence, we offer a specific tax analysis tailored to your personal situation, including a calculation of the expected tax burden (income, wealth, etc.).

All our calculations take into consideration the place of residence in Spain, possible child allowances, potential joint taxation (tributación conjunta), as well as the age of the children. In addition to calculating income tax, we analyse your assets in order to advise you specifically on possible obligations regarding Wealth Tax and reporting obligations for assets held abroad (Modelo 720), cryptocurrencies (Modelo 721), etc.

The complexity and workload involved in the planning and calculation mainly depend on the type and amount of your income and assets.

1. Income from foreign pensions or civil servant pensions.
2. Assets and capital income from companies in which there is no significant shareholding (less than 25% within the family): up to 20 bank accounts, securities portfolios or investment funds.
3. Assets and income derived from rights against third parties, copyrights, licences, etc.
   
4. Assets and income from rental activities: up to 5 properties.
   
5. Assets and income from dividends received from companies in which the family holds a shareholding (at least 25% within the family), with economic activity, balance sheet and substance (employees, means of production, etc.).
6. Assets and income from dividends received from asset-holding companies in which the family holds a shareholding (at least 25%), without economic activity or without sufficient substance (employees, means of production, etc.).

Our services:

a) Binding figures: Tax planning and tax simulation.

• Analysis of the client's different domestic and foreign income sources and assets, as well as their tax consequences when becoming resident in Spain.
• Calculation of Income Tax and a complete simulation of the corresponding tax return (Modelo 100), including the spouse where advantageous.
• Calculation of Wealth Tax and a complete simulation of the corresponding tax return (Modelo 714).
• Calculation of the Solidarity Tax on Large Fortunes and a complete simulation of the corresponding tax return (Modelo 718).
• The calculations are carried out according to the tax rates and requirements applicable for the latest available tax year.
• The calculations are prepared according to the Autonomous Region in which the residence is planned (excluding the Basque Country and Navarra, which have their own special regional tax systems).

b) Binding results: Legal opinion with legal basis.

• The different Double Taxation Agreements (DTA) are taken into consideration.
• All types of income are analysed, including the applicable taxation in Spain according to domestic legislation and, where applicable, the relevant Double Taxation Agreements.
• All conclusions are legally supported by references to legislation and case law.
• Articles, legal provisions and court decisions are cited and attached to the legal opinion in their original language.
• The results will be sent to you in writing within an agreed timeframe and will subsequently be discussed in detail during a telephone conference or a personal meeting at our law firm. If additional documents or information are required from you, the period between our request and the receipt of such documentation will not be included in the aforementioned timeframe.

c) Planning and optimisation: Guidance on available options.

• As a final step, where applicable, we will present specific rules and planning opportunities for the legal optimisation of your tax situation. If such possibilities exist, we will provide you with detailed information regarding the requirements and the necessary steps to be taken.
• Regardless of the specific matter involved, your situation will always be analysed by a team of tax advisors, lawyers and business consultants, ensuring professional expertise in both tax and legal aspects.