PRACTICE AREA INTERNATIONAL

Excellence in coordinating and implementing cross-border
engagements covering multiple jurisdictions

The complexities involved in international transactions and the constant modifications to legislation in the different countries requires a team of professionals who are well versed in coordinating the tax implications in several different jurisdictions and who can call upon a vast network of contacts with whom they have cooperated effectively on a wide range of projects.

This area of specialty is focused on the provision of tax advice for private as well as corporate clients whose activities involve a significant international scope. This activity is complemented by the corporate law practice of the Firm, in order to coordinate and carry out project implementations

We carry out ongoing and detailed monitoring of recommendations of several leading international bodies (especially the OECD and G20), of the EU legislative initiatives and of the impact of the jurisprudence of the EU Court of Justice in tax matters which might affect our clients.
We provide consultancy in the form of appropriate and fitting interpretation of Spanish legislation concerning foreign transactions or investments, of non-resident taxation rules and of international treaties in order to avoid double taxation.
We review international structures in order to mitigate tax risk, cases of double taxation and a reduction of the overall tax burden ensuring this is effectively aligned with the economic substance.

The Altalex team provides our group valuable alternatives and solutions on tax matters.”

Jaume Puntes

Tax Director
CELLNEX TELECOM, SA

Implementing and advising in reorganization processes involving holding companies for Spanish and foreign groups. It is important to highlight our wealth of experience in corporate restructuring procedures through Spanish holding companies which opt for the ETVE tax regime.
We provide support in labor and tax related issues for companies and private clients in expatriation procedures for professional reasons, as well as in other cases where clients are considering a transfer of tax residence to Spain or from Spain to another country.
We work diligently in the coordination and proper implementation of projects in which professionals from many countries are involved.
Moreover, our compliance team assists our clients in the ensuring conformity with all their accounting, legal and tax obligations in Spain and to coordinate their compliance in other countries with the support from our extensive network of contacts.

PROJECTS

IBEX 35 Group headquartered in Barcelona

Tax advice regarding foreign investments.
For example, recently the group’s tax management contacted us regarding the tax implications in the event of carrying out a significant investment in Australia through a somewhat little understood legal structure here in Spain. More specifically, the objective was to perform the investment by way of a trust based in Australia (unit trust) and an Australian holding company. The institution of the trust is not recognized under Spanish law. The structure enables to reduce taxation at source and avoid restrictions which, alternatively, would apply to the distribution amounts paid in the aforementioned country during the preliminary years of the investment.

Important Latin American group from the energy sector (petrol and gas) listed on the Latin American and Canadian stock exchanges

Implementing a management and coordination center.
For a wide range of different business reasons, the group’s management team chose to implement a coordination center shared between Spain and Panama. More specifically, the center was implemented as a Panamanian branch whose head office is located in Spain. The structure includes top executives and management of the varying divisions of the group and back-up personnel on staff. Moreover, the center provides a range of tax benefits which alternatively would not be an option for the company to avail of.

Group with offices in Washington DC, leader in investment and management of projects in the energy and infrastructures sector with a presence in several countries

Tax advice and implementation in Spain of a holding company for the management and control of operations in Latin America.
As was the case with other clients, after contrasting with other firms in Spain, the group’s management and their tax advisors in the US realized our firm’s suitability and capability to provide them with exactly the kind of advice they required in the implementation of a company covered under the specific provisions for a Spanish ETVE as a regional holding company for Latin America. The global holding company for the group and parent of the ETVE is located in Luxembourg.

Private Spanish client living in London

Transfer of tax residence
After retiring from his position at one of the major banking institutions in London, our client set up independently to develop a business activity in the financial sector which he feels will generate significant profit. Having been referred to us by an international consultancy firm, he presented his concerns about what the most suitable alternative would be for developing his activities. In order that the potential tax incentives are aligned with the economic substance and after considering several different jurisdictions, our client decided to transfer his residence, together with a number of other colleagues, to a jurisdiction in the Middle East. He lives and works there providing his services to clients based in developing countries (many of which are African) from an entity in which he is a shareholder and having its headquarters in a major international financial center and another company with offices in London regulated by the United Kingdom Financial Services Authority.

Foreign national with high net worth

Transfer of tax residence to Spain
Referred to us by a tax firm in the Netherlands, this Dutch client decides to “retire” to live on the Spanish Mediterranean coast after selling off his business group. The transfer of the client’s residence is duly planned in order to reduce the tax burden in his country of origin and in Spain for the year in which the transfer takes place as well as the subsequent years.

Family owned group with real estate investments in Poland, Germany and Spain worth above 300 million euros (estimated to be in the range of 425 million euros by 2016)

Transfer of tax residence abroad
After advising the client for over fifteen years, the client decides to transfer their residence outside Spain. As with every case in which we work, in order that potential tax incentives are in line with the economic substance, we advised our client on the transfer mind and management of the parent company and of our client’s tax residence and that of his family (sole shareholders in the group) to another EU member state. We remain in place as this client’s preferred Spanish tax services provider.