Hassans hosts tax treaty seminars
Hassans has held seminars, attended by close to 200 people, aimed at clarifying the key points of the recently signed tax treaty. Three main takeaway points were discussed in particular Hassans summarised them as follows:
Takeaway #1: It doesn’t matter whether or not you are registered in Spain – whether you have or haven’t registered with the Spanish authorities is irrelevant. The Government of Gibraltar will be sharing full employment and earnings data on those with Spanish details with the Spanish authorities with the first information being sent within four months of the entry into force of the Treaty. This includes the names and addresses of individuals working within Gibraltar, and paying tax within Gibraltar, but with addresses in Spain and details of income dating back to 2014.
Takeaway #2: Your Family Might Also Be Affected – having dependents residing in Spain, even dependent grandparents, is one of the factors potentially influencing your tax residence. The Treaty also affects Gibraltarians who have been residing in Spain for over four years and Spanish and non-Spanish nationals wishing to change their tax residency to Gibraltar.
Takeaway #3: Your Business May Be Affected – Gibraltar-based companies/businesses with assets or earnings based in Spain and/or the majority shareholders or directors of which are Spanish tax residents will also be considered Spanish tax resident. So, if your business operates cross-border, you need to start considering your options now.
Grahame Jackson of Hassans recommends that you fully understand and are fully compliant with your tax residency obligations, and that you safeguard your assets and protect your business interests.
Kenneth Bonavia, also of Hassans, adds that, should you seek advice on the matter of the tax treaty, it is critical that your advisor has an understanding of both Gibraltarian and Spanish jurisdictions.
