Tax Consultancy For Private Clients – Non-Resident Or Residents

We can help you to abide by and fulfil your tax obligations so that you have complete peace of mind leaving your tax obligations in our hands, and trusting us to prepare your tax returns. Konsell is experienced in the application of double taxation avoidance agreements (DTT) and in many cases, getting refunds from taxes paid abroad unnecessarily, and helping you achieve your best tax position.

Konsell can advise or even help you managing your family-owned assets/ businesses, guide you through mercantile restructuring processes to produce higher profits and lessen the tax obligations, in a legal and correct manner.

You and your family can count on our tax team’s expertise to get proper asset management advice, to optimize tax efficiency, leaving your wealth to future generations.

Konsell can help with:

Once you get this tax resident position, likely most of all your worldwide income will come under Spanish Tax jurisdiction, regardless where and how they are generated, almost all sources of income, including capital gains, interests, salaries, retirement pensions, rentals, etc.

Usually the first, or transition year, of your moving into Spain, will involve your previous country of residency´s tax system application as well, you will have to match the periods and amounts earned. You will be assisted by our well trained experts on the international taxation team. They will support you and your tax advisor in your country of origin, to file your returns in a very precise right way.

Whether you are a tax resident in another country, when deciding to have a property in Spain, developing some economic activities, even temporary, like leasing your property or doing some kind of business here which entails generating income, you will need to negotiate substantial taxation issues here in Spain.

Konsell will let you know, in your case, the best ways to file your returns and amounts to pay to cover your tax obligations. You will be aware of your tax liabilities in terms of schedules, formulas, concepts and figures, etc, not making any errors which can lead to surcharges or penalties. Generally speaking, many citizens abroad just pay their taxes on line without further complications. This is not the case in Spain where the system and its nuances can easily lead to misunderstandings and errors.

Just to add even more complexity, you need to know that the tax system has diverse rules in different areas of our country.  You can also be affected by VAT, Inheritance and donation tax and transfer tax in certain circumstances. Therefore, make it easy for yourself and let us help.

This is a special Spanish tax regime for expats, which could be of great interest to you, as the taxation rate would be just 24% for sums up to 600,000 Euros, whereas the progressive general tax regime scale can reach up to 43 % on your worldwide income.

This would be available provided you meet the eligibility criteria and plan in advance to apply for it.  Konsell will help you to understand and decide about this, along with the applications and following up the process

Private individuals acquiring tax residence in Spain as a result of their transfer into this country can opt to pay non-Residents Personal Income Tax. Whilst maintaining their status as Personal Income Tax taxpayers during the tax period in which the change in residence takes place. Also, during the following five tax periods, when, in the terms established by tax regulations, the applicable conditions are met.

When you acquire your property in Spain you will pay VAT, at different rates if the property is a new build or not. If it is second hand you would pay a transfer tax, but if you buy it through some companies, you could save this. 

You will pay an annual Council Tax, as a local tax, and also annually, your non-resident tax if you hold that tax position. This is deemed income tax, when you are resident, even when you are not making any use of it yourself. Also, income tax for the periods you have leased out the property.

When you sell or donate your property, there would be potential capital gains, and you would have to pay for them or demonstrate that there were no such gains. If you are a non-resident, 3% will be withheld on the price you receive, but you may have the right to claim a refund of some, if not all of it.

Therefore, as you see, there are many opportunities to save by getting proper advice and devising a suitable tax strategy.

You could find yourself in an indistinct tax position whereby your tax position as a resident could apparently be linked to two or even more countries.  This could be due to personal or business activities.

Our tax team specialises in this area of tax knowledge and are up to date in the many nuances of the tax law, international disputes and Double Taxation avoidance Treaties´ interpretation and application.

Establishing your tax residency is of the essence as most of your sources of income will be subject to that jurisdiction along with any other tax obligations.  Spain is not a low taxation jurisdiction.

Konsell can help you with this critical issue.

One of the more dramatic consequences of a change of residency are capital gains generated when some clients have liquidated some assets, including but not only properties, stocks, etc, and made good profits just before their planned move to Spain. This can be a critical moment that should be studied well in advance so as to manage the potential taxation of these sometimes, significant amounts.

We have helped many clients to do this in a tax efficient way, saving them many thousands in the process using an intelligent compliant strategy.

Image rights structures have been around for a number of years and their use has increased considerably. At a basic level an individual will assign or licence the right to exploit their image to a company. That company will then exploit the rights by entering into contracts with others. Depending upon the jurisdiction in which the company is located, the status of the individual, and the contractual arrangements, the profit generated by the company may then be taxed at a reduced rate or not at all. The tax savings can, therefore, be considerable.

Tackling tax avoidance and evasion is a political priority in the EU, with a view to creating a deeper and fairer single market. In this context, the European Commission (EC) has presented in recent years a number of initiatives in order to promote a fairer tax system. Enhancing transparency is one of the key pillars in the EC’s strategy to combat tax avoidance and evasion.

In particular the exchange of information between tax administrations is crucial in order to provide them with the necessary information to exercise their duties efficiently.

You may be expecting or have already received a notice from Spanish Hacienda or some other Spanish Tax Offices letting you know that they wish to know more about your tax affairs and are opening a partial or full tax investigation.  You would be well advised to talk to  Konsell, in order to prevent further issues and if necessary, to defend you in a potential dispute with the Tax authorities. 

Some of our clients came to Konsell when they were in this situation and have been delighted with the defence they received.  We negotiate with the tax inspectors to avoid misinterpretation of our client’s position and activities, saving them months of hardship and expense in a lengthy procedure. Where that is not possible, we take cases to court and have defeated the different tax administrations many times, obliging them to refund our clients and even pay compensation on the interest legally accrued.

Tax inspections take place not only for residents but more and more for potential residents   usually developing personal or business activities in Spain.

We are qualified tax advisors, lawyers, economists, accountants, all of us are acquainted with several jurisdictions and international clients.

Once a claim from any of the different tax offices in Spain, whether national, regional or local, gets to you or your relatives, you should act immediately, as time is of the essence. You need to get the assistance of specialists to preserve your interests.

Through the years we have fought many claims in front of different tax offices, tax supervisors’ offices, administrative Courts, and even the Regional Counsel of Tax courts.

Gibraltar is a place with a very special tax regime that due to our international tax orientation and even by physical proximity, we know very well.   Any international tax matter linked to this distinct tax jurisdiction should be carefully dealt with by experts. You will find quite a number of cross border tax issues for those working in Gibraltar and living in Spain. Do consult us!