Amidst much discussion surrounding the implications of the UK / Spain Tax Treaty on Gibraltar residents with Spanish interests and vice-versa, Hassans held a duo of seminars during the last few weeks to demystify and clarify the key points of the Treaty and how to ensure compliance.
The level of response was unprecedented and saw nearly 200 people attend the breakfast sessions. Partners Grahame Jackson and Kenneth Bonavia took the delegates through numerous scenarios for both individuals and businesses and answered questions from the floor regarding individual circumstances.
The seminar covered a number of takeaway key points:
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 commented:
"Essentially, those affected need to do one of three things, or a combination of the following:
Regularise – get your legal paperwork in order and ensure that you fully understand, and are fully compliant with, your tax residency obligations on both sides of the border.
Restructure – safeguard your assets and protect your business interests by ensuring you have an efficient and compliant cross-border structure.
Relocate – change your residency status as applicable, get trustworthy advice on property, tax, finance, insurance, banking, healthcare and other considerations when relocating with your family."
Kenneth Bonavia added:
"If you are concerned regarding your past, current or future Gibraltar/Spain tax implications, when seeking advice it's critical that your advisor has an understanding of both jurisdictions in order to advise appropriately. Each of the options has considerations unique to your own special circumstances so getting very specific advice will be crucial."
Should you wish to discuss your individual situation with one of our cross-border experts, please email firstname.lastname@example.org to request a meeting.