432
[ESTABLISHING A BUSINESS ENTITY IN SPAIN]
- Direct investments made by investors who are non-EU-EFTA residents or when being EU-EFTA residents its beneficial owner are non-residents, and which holds at least 10% of the capital of the company or control the company.
de España”). This report has purely statistical and informative purposes. 4.4 Any restrictions on remitting funds out of the jurisdictions (withholdings, etc.)
Non-residence Income Tax: Dividends and branch’s profits, Interest and Capital Gains (coming from the dissolution of the subsidiary or closing of the branch): Non- residence Income Tax
•
- When affects Spanish strategic sectors; or
- When the investor is controlled by a third- country government; or - When the investor participates in sectors that affect public order, public security and public health; or - If there is a serious risk that the foreign investor will engage in criminal or illegal activities that affect public safety, public order or public health in Spain. - Direct investments made by EU-EFTA residents in listed companies, or in non- listed companies when the investment value exceeds 500 million euro. This restriction shall apply until December 31, 2024. • Monitoring of foreign investments In specific cases the Spanish companies which have foreign shareholders, and Spanish branches of non-resident persons shall file an annual report DGCI on the status of their foreign investments. The DGCI may also require the holders of investments to provide the information necessary in each particular case.
These sources of incomes will be taxed in Spain depending on the country of residence of the offshore parent company: If it is resident in a non-EU country with which Spain does not have a tax treaty : income will be taxed in Spain at a rate of 19%. If it is resident in a non-EU country with which Spain does have a tax treaty (provided that there is reciprocal treatment): - Dividends / branch’s profits: dividends will be taxable at the reduced treaty rate and the remittance of branch’s profits will, under most treaties, be exempt from tax in Spain. In general terms, tax treaties signed by Spain set forth a dividends taxable rate in the range of 5 to 15% and, in case of Parent-Subsidiary dividends in the range of 5% to 10%, provided that the parent company holding in the subsidiary reaches mostly a percentage in the rate of 10%-to 25% (50% in some cases). - Interest: will be taxable at the reduced treaty rate, mostly at the rage of 0- 10%. - Capital Gains coming from the subsidiary’s dissolution or the branch’s
Foreign transactions declarations with the bank of Spain
•
Bank of Spain establishes that individuals or entities (public or private) resident in Spain, other than payment service providers registered on the official registers of the Bank of Spain, that carry out transactions with non- residents or hold assets or liabilities abroad, must report them to the Bank of Spain (“Banco
ILN Corporate Group – Establishing a Business Entity Series
Made with FlippingBook Ebook Creator