With the entering into force of Law 14/2013 of 27 September, on entrepreneur support and internationalisation, and for the purpose of attracting investment and talent to Spain, the requirements for work permit and residence permit applications have been made more flexible. The law provides for the granting of a Golden Visa in Spain through an investment in real estate equal to or exceeding €500,000 free of charges and tax.
When a directly owned enterprise has the status of holding company according to the exemption scheme to avoid double taxation, the income from which dividends in Spain are distributed must meet the “minimum tax” requirement.
The latest regulatory and technical modifications for the keeping of VAT record books will become effective on 1 July 2018. These modifications are published under Order HFP/187/2018, of 22 February, whereby it is intended to finalise details and correct the errors that have been coming to light in the SII in Spain since it entered into force on 1 July 2017.
Although the OECD considers transaction-based methods as the most straightforward methods to determine whether or not business relationships between related entities comply with the arm’s length principle, we will use one or the other depending on the type of transaction to be examined.
The increasing globalization and the presence of more and more companies in different countries forces us to know if our company is complying with the regulations established in the Spanish Corporate Tax Law (LIS) regarding Transfer Pricing in Spain.