New legislation and incentives to relocate to Spain

In our last article in Taxation (‘Amor España’ 11 November 2021) we discussed how UK taxpayers working remotely in Spain (or UK companies trying to relocate to Spain) had traditionally faced four critical issues.

The new Spanish ‘startups law’ tries to facilitate investment immigration and tax residence in Spain by addressing some of those issues:

1) The post-Brexit Schengen rules limit the stay for UK nationals to 90 days within any 183 days. UK nationals need a visa to stay in Spain.

2) The unattractive Spanish tax regime applies to all income gains wealth and inheritance worldwide for UK nationals classified as Spanish tax residents.

3) The corporation tax rules under the double tax treaty provisions and in particular the permanent establishment and management and control issues may bring a UK company under the Spanish corporation tax regulations – a critical issue also from...