Tax planning often brings to mind the need to shell out funds for investment, but how about saving taxes without investing? By just Moving to Spain? Not a single penny goes out of your pocket and you still save taxes! Moving to Spain for tax reasons is a reliable way to significantly reduce taxes below 1%. We cover the range of options of saving tax without investing. Just read below how to save Taxes Moving to Spain with an ETVE and SICAV structure!
Finanzkontor provides clients moving to Spain with comprehensive advice on taxes in Spain.
We do that through network partners specialized in international tax law, financial and legal expertise and a clear focus on our client's personal, family and business expectations.
ETVE
The spanish ETVE company is a perfect model to compete in the international tax
planning market for holding companies.
For international clients moving to Spain Finanzkontor uses an ETVE to set up a complete structure ready to be used for international tax planning purposes under adequate Spanish tax supervision.
The main tax benefits of the International Spanish Holding Company ETVE are:
1. No Corporate Income Tax on Dividend Income Received. - Income
accruing to an ETVE is Corporation Tax exempted in Spain.
2. No Capital Gains Tax on the Sale of Shares. - Capital gains made
by the ETVE on the sale of shares in qualifying non-resident
subsidiaries are exempted from capital gains tax in Spain. Even the transfer of shares into the Spanish holding company capital gains are in some cases tax exempt
3. No Withholding Taxes on Outgoing Dividends. - Outgoing dividends
paid by an ETVE to its non-resident parent company are free of
withholding taxes in Spain unless the parent corporation
is not in a tax haven.
4. Double-tiered ETVE structure. - Dividends received by the Spanish parent company from its Spanish subsidiary is considered as foreign source. The dividends originated from non-resident companies are than, as a result,
free of Spanish withholding tax.
SICAV
The spanish SICAV is a mutual fund there the owner of the fund can have the 99,9% majority. It's an ideal vehicle to transfer your money into Spain when moving to Spain.
A SICAV is taxed at a 1% on capital gains. Under some circumstances no income tax for the fund owner is applied when taking out money.