NEW DOUBLE TAXATION TREATY BETWEEN SPAIN AND UK.

There is a new double taxation between both countries which will be applicable from 12.6.2014.

For those of you resident in the UK , this may have consequences if you own shares in Spanish companies where the value is based more than 50 % on Real Estate . If you decide to sell the shares you will have to pay in Spain non resident income tax for the capital gains incurred in this transfer. Formerly this would have only been taxable in the UK .

Also the ownership of these shares should be declared in the Annual Wealth Tax Declaration . This was not applicable previously, when only direct ownership , i.e. property owned by UK non resident physical persons was taxable in Spain. However, a wealth tax declaration has to be presented only if you own assets which exceed the net value of 700.000 Euros or with a gross value exceeding 2.000.000 Euros , both per person.

For more information or an appointment please contact us on (0034) 952 822 321 or admin@nonresidenttaxesinspain.com. Web: www.nonresidenttaxesinspain.com