Gibraltar Spain Tax Agreement

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December 9, 2020

On 4 March, a tax agreement was reached between the United Kingdom and the Kingdom of Spain on Gibraltar. The agreement aims to improve tax cooperation between Gibraltar and Spain, as well as the expected removal of Gibraltar from the Spanish blacklist. Tags: Accords Double taxation conventions Europe European Union (EU) Spain Gibraltar United Kingdom Taxation The rules for Spanish nationals will have changed as follows from 4 March 2019, when the treaty is officially ratified and the first exchange of information takes place within four months of the formal ratification of the agreement. “Border workers will continue to pay taxes in Gibraltar, with at least border workers residing in Spain working in Gibraltar. Gibraltar`s taxes based on the source of income. So if you work in Gibraltar, we tax your income at the source of Gibraltar. Many of these border workers who come to work every day in Gibraltar return to Spain and are also taxed on their income in Spain. This agreement . . . stipulates that both states will provide unilateral tax breaks to taxes that have already been paid in a given state. For example, if you are a Spanish border worker, you will continue to pay your tax in Gibraltar, it will be deducted from your salary. If you are in Spain, you will only have to pay the difference between the higher tax rate in Spain and the amount of tax you paid in Gibraltar if there is a larger difference. [GOVERNMENT HM of Gibraltar] www.gibraltar.gov.gi/new/sites/default/files/press/2019/Press%20Releases/Text%20of%20Tax%20Treaty%20in%20English.pdf In the final stage of the ratification process, the Spanish Senate on Wednesday (September 16th) approved the international agreement on taxation and the protection of financial interests between the United Kingdom and Spain regarding Gibraltar (the “treaty”).

www.gibraltarlawyers.com/uploads/PDF/ISOLAS_Tax_Agreement.pdf. Individuals should be very attentive to their position and be subject to comprehensive advice. Hassans offers advice from both Spanish and Gibraltar under one roof and is placed in a unique way to help. The options available should be actively considered; restructuring or restructuring. If you need advice about your status, please contact Grahame Jackson or Kenneth Bonavia. (iv) Spanish inheritance tax on gifts or estates and if you own a property, if your husband or wife regularly spends time in Spain, if you have significant investments, or if you regularly visit Spain (let`s say we spend there from Friday evening to Monday morning), you should review your position and get independent legal advice from our Spanish and Gibraltar lawyers. The Spanish tax treaty of Gibraltar aims to remove uncertainty about the tax position of persons considered to be resident in both countries. There will be an impact on anyone with links to Spain and the effects should be carefully considered.

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