(Gibraltar)
The Spanish government wants to avoid this small territory of 30,000 inhabitants and 55,000 registered companies, to take advantage of the opportunity in leaving the EU
Mar 4, 2019 - 1:30 PM
‘Spain and the United Kingdom have packed to avoid tax evasion in Gibraltar’
The Spanish government wants to avoid this small territory of 30,000 inhabitants and 55,000 registered companies, to take advantage of the opportunity in leaving the EU
Mar 4, 2019 - 1:30 PM
Spain has taken advantage of the immediacy of Brexit to take advantage of the UK’s weaker position by demanding that the UK now has to comply in cracking down on tax evasion.
Given both countries remain in the EU for now, they have agreed an international treaty over the taxpaying individuals who spend halve of their lives in Spain, and the companies who have assets or income from Spain must now pay their dues and establish this new stability for the long-term
Spain has succeeded with this new international accord signed Monday in London between the British Brexit minister, David Lidington and the Spanish foreign minister Josep Borrell.
The Spanish government wants this new deal to start immediately whether Britain leaves the EU or otherwise. Given that both parliaments have to ratify the deal based on the four memorandums signed between London and Madrid in November – (including the cost of Gibraltarian tobacco need to increase to stop the contraband gangs using the border)
The fiscal treaty establishes an objective barometer to determine who is a tax-resident in Gibraltar and who isn’t. Britons who spend more than 183 days a year in Spain are liable to tax from the Spanish Hacienda. The new treaty also affects those who are paying taxes in Gibraltar
Consulted sources assure that the problem has been of a minor concern, but post Brexit this compromise between London and Madrid must solidify
‘We have removed all the tax advantages of Spaniards who want to base their businesses on the Rock of Gibraltar on a permanent basis’
Unemployment in Gibraltar is only 1% but across the border ironically there is one of the poorest parts of Spain – La Línea de la Concepción where 35% of the population are out of work.
With this current inequality, Spain will now put into action more tax inspections regarding those companies with residency in Spain unless this clause applies
Companies constituted in Gibraltar before 16 November 2018 when the four memorandums were signed will be exempt if proven that 75% of their income is generated locally in Gibraltar.
The success depends on the international accord on the exchange of tax information. The Gibraltarian administration must share fiscal and tax information with Spain’s equivalent – some data will be exchanged automatically.
This will affect the workers in Gibraltar who live in Spain and their cars, boats and planes registered in Gibraltar and likewise the Gibraltarian residents who work in Spain.
Asked about this a spokesman for Fabian Picardo ‘ I am very happy that we have reached an accord over this historically complicated matter’
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Given both countries remain in the EU for now, they have agreed an international treaty over the taxpaying individuals who spend halve of their lives in Spain, and the companies who have assets or income from Spain must now pay their dues and establish this new stability for the long-term
Spain has succeeded with this new international accord signed Monday in London between the British Brexit minister, David Lidington and the Spanish foreign minister Josep Borrell.
The Spanish government wants this new deal to start immediately whether Britain leaves the EU or otherwise. Given that both parliaments have to ratify the deal based on the four memorandums signed between London and Madrid in November – (including the cost of Gibraltarian tobacco need to increase to stop the contraband gangs using the border)
The fiscal treaty establishes an objective barometer to determine who is a tax-resident in Gibraltar and who isn’t. Britons who spend more than 183 days a year in Spain are liable to tax from the Spanish Hacienda. The new treaty also affects those who are paying taxes in Gibraltar
Consulted sources assure that the problem has been of a minor concern, but post Brexit this compromise between London and Madrid must solidify
‘We have removed all the tax advantages of Spaniards who want to base their businesses on the Rock of Gibraltar on a permanent basis’
Unemployment in Gibraltar is only 1% but across the border ironically there is one of the poorest parts of Spain – La Línea de la Concepción where 35% of the population are out of work.
With this current inequality, Spain will now put into action more tax inspections regarding those companies with residency in Spain unless this clause applies
Companies constituted in Gibraltar before 16 November 2018 when the four memorandums were signed will be exempt if proven that 75% of their income is generated locally in Gibraltar.
The success depends on the international accord on the exchange of tax information. The Gibraltarian administration must share fiscal and tax information with Spain’s equivalent – some data will be exchanged automatically.
This will affect the workers in Gibraltar who live in Spain and their cars, boats and planes registered in Gibraltar and likewise the Gibraltarian residents who work in Spain.
Asked about this a spokesman for Fabian Picardo ‘ I am very happy that we have reached an accord over this historically complicated matter’
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