Tax Planning

At GWM we pride ourselves in aiding our clients in all key areas of financial planning. IHT, succession rights and standard tax advice are all pertinent to a sound financial strategy and formula. However, we are not Tax Experts.

In order to ensure our clients receive clear, concise and up to the minute tax guidance, we work with well-established tax professionals who are specialists in both local and international tax law. We will arrange the initial consultation and then your advisor will accompany you to the meeting to ensure worthwhile and in-depth discourse.

Also, as a valued client of GWM, your initial consultation will be free of charge and you will also benefit from reduced rates for any ongoing services/sessions required. We will then work closely with your tax accountant, ensuring constant dialogue, to entrench complete piece of mind that all your affairs are not only in order, but are being regularly reviewed by reputable institutions working together for a common goal; Your financial well-being.

BASIC SPANISH TAX RESIDENCY RULES

A common misconception, especially amongst oil & gas workers and airline employees such as pilots, working offshore for fixed and regular periods, is that because they are employed by international companies that generally operate in a tax free jurisdiction and only spend a certain amount of time in the country where their main residence is located, that this eradicates the requirement for tax liability or indeed any tax reporting.  This is in fact not the case. Residency laws are an ever-changing landscape and can be extremely perplexing to say the least.

The law is contained in Article 9 of the Impuesto sobre la Renta de las Personas Físicas (Ley 35/2006 de 28 de noviembre).

Definitions
 
A person is tax resident when habitually resident in Spain. Habitual residence expressly exists when one of the two following situations exist:

A.    A person is present in Spain for 183 days or more during a calendar year, bearing in mind that the calendar year is the tax year.

B.    Spain is, directly or indirectly, the base or centre of a person’s economic or personal interests.

Furthermore:

C.    It shall be presumed that a person is habitually resident (i.e. tax resident), subject to proof to the contrary, if:
D.   
i.    His/her spouse, not legally separated, is habitually resident in Spain, and
ii.    His/her minor children that depend on him/her are also habitually resident in Spain.

Furthermore:

E.    Temporary absences of a person shall be regarded as presence in Spain unless the person can demonstrate tax residence in another country. In the case of tax residence in a listed tax haven, the Spanish tax office may require proof that demonstrates physical presence in that country for 183 days or more.