You might be interested to know that STEP has organized a webinar on international tax planning for cross-border families with a focus on the US, LatAm and Spain. Our partner, Carlos Gabarró, has been invited to cover the section for Spain.

This webinar will take place on Thursday, February 4, 2021 from 12:00 PM to 2:00 PM US EST (6:00 PM to 8:00 PM Central European Time).

The speakers will review some key principles of US international taxation and cross border tax planning between and among the US, Latin America and Spain for global families. This is meant to be a high-level introduction to key concepts of international planning in the different jurisdictions, a review of taxes from around the regions and other considerations when planning for multi-jurisdictional clients.

This webinar is free of charge. You may click the button below to access the STEP registration website.

Feel free to register and share this invitation.

Yours truly,

Your Team at Altalex Asesores, SL

Access registration website

La entrada CROSS-BORDER FAMILIES WITH A FOCUS ON THE US, LATAM AND SPAIN se publicó primero en Altalex.

• The participation exemption regime on dividends and capital gains from qualifying subsidiaries will apply on 95% of the income (rather than the current 100% exemption). Thus, effective taxation on qualifying dividends received and capital gains generated by the Spanish parent or holding company (including those that have opted for the special ETVE tax regime) would generally be 1.25% (5% of income subject to the general corporate tax rate of 25%). In case of a multi-tier Spanish holding structure, this 1.25% tax leakage would apply at all entities in the holding chain (even if forming a tax group).
• CFC rules for corporate and individual resident taxpayers would also be applicable to “permanent establishments” abroad and the categories of “tainted passive income” are expanded and also could affect foreign holding company structures.
• The top marginal rate of Personal Income Tax is increased in two points for income exceeding 300 thousands euros (thus, the highest rate could reach 50% in certain Autonomous Communities). For so-called “savings income” (interest, dividends and capital gains out of the transfer of assets), the top marginal rate becomes 26% for income exceeding 200 thousand euros (thus, the scale of rates would range from 19% to 26%).
• For Wealth Tax, the top marginal rate increases to 3.5% for net wealth exceeding roughly 10.7 million euros in those Autonomous Communities which have not approved their own rates. Furthermore, unit-linked life insurance policies where the policyholder has no surrender rights, the mathematical provision of the policy would have to be considered as taxable wealth.

In the links below, please find two articles written by our partner Carlos Gabarró and published by the international publication Tax Notes International. Please also feel free to share then with whoever you deem might be interested.

As usual, please do not hesitate reaching out any of your contacts at Altalex to discuss all this and determine any planning alternatives before year-end.

With kind regards,

Your Team at Altalex Asesores, SL

Wealth Tax Planning

Trusts and Private Foundations

La entrada TAX ALERT – IMPORTANT NEW TAX MEASURES IN SPAIN se publicó primero en Altalex.

After the 2014 Judgement of the Court of Justice of the European Union (case C-127/12 of September 3, 2014), the Spanish Inheritance and Gift Tax Law was modified in order to let the EU/EEA residents apply, as from year 2015, the specific Autonomous Community legislation as applied to Spanish tax residents. This could provide for significant tax savings. Conversely to the general tax rules, certain Autonomous Communities establish a 99% tax allowance on gifts or inheritances between direct family members, between other benefits.

The Supreme Court Decision has gone beyond this by allowing third-country residents (a Canadian tax resident) to apply the beneficial legislation of the Autonomous Community of Catalonia. On its pronouncement, the Court paid special attention on the 2013 Judgement of Court of Justice of the European Union (case C-181/12, October 17, 2013) where it was considered that the German legislation dispensed worse tax treatment in an inheritance of a property located in Germany to a heir resident in a State that is not a member of the EU/EEA, specifically Switzerland.

Subject to detailed analysis, at Altalex we are already assisting clients in claiming the refund of taxes as per the application of EU principles (“free movement of capital”), case law and, now most relevant, as per the recent Judgement of the Supreme Court.

Should you want to discuss the above, please feel free to contact us.

La entrada Spanish Supreme Court rules against Inheritance Tax discrimination on third-country residents se publicó primero en Altalex.

As is already known, after the stock market collapse of Banco Popular on 7 June 2017, the Fund for Orderly Bank Restructuring (“FROB”) reported the sale of Banco Popular to Banco Santander, S.A. (“Banco Santander”) for one 1 Euro. This decision was adopted by the Single Resolution Board (“SRB”) after the financial institution was declared non-viable by a third party, an independent expert.

With this information, and in accordance with the existing doctrinal and jurisprudential precedents in Spain, we can affirm that there would be legal mechanisms that would allow the affected investors to recover their money, under certain conditions.

The note in the link below is a first approach to the facts and the existing alternatives. Please contact any of the following partners at ALTALEX, SL in case you would like to further discuss this matter.

View Note

La entrada BANCO POPULAR, SA – POTENTIAL CLAIMS FOR INVESTORS se publicó primero en Altalex.

La entrada CHAMBERS EUROPE 2017 se publicó primero en Altalex.

La entrada ALTALEX AT THE 17TH ANNUAL TAX PLANNING STRATEGIES WORKSHOP se publicó primero en Altalex.

The tax measures introduced in the CIT pursue to broaden the CIT taxable base of major multinationals, modifying certain exemptions and tax credits. Although they may be significant, somehow they are in line with those introduced in year 2015 with the new Spanish CIT Law and with the tax system of other EU member States.

La entrada Royal Decree – Law 3/2016 of 2 December 2016 se publicó primero en Altalex.