International Tax
The growing mobility of people and capital, together with the expansion of automatic exchange of information between tax authorities, calls for international tax advice that goes well beyond the one-off consultation. At Lex·on we act for Spanish tax residents holding assets or earning income abroad, for non-residents deriving income or capital gains in Spain, and for cross-border corporate structures operating across several jurisdictions.
Non-resident income tax (IRNR)
Non-resident income tax is the central charge for foreign investors in Spain. We advise on the taxation of rental income, dividends, interest, royalties and capital gains obtained by non-residents, and on the related filing obligations: form 210, tax residence certificates, and the application of the exemptions and reduced rates available under double tax treaties.
Double tax treaties
Spain has an extensive treaty network that bears directly on the taxation of non-residents and expatriates. Applying a treaty correctly, including proof of tax residence, the permanent establishment threshold and the attribution of profits, calls for precise technical analysis. We work regularly with the treaties Spain has concluded with Germany, the United Kingdom, France, the Netherlands, Belgium and Sweden, among others.
Exit tax and change of tax residence
Article 95 bis of the Spanish personal income tax act charges unrealised gains on shares and holdings when a taxpayer moves their tax residence out of Spain. Analysing the position before the move is essential in order to anticipate the tax cost, weigh the available deferral options and structure the process efficiently.
Transfer pricing
Transactions between related parties must be priced at arm's length. We advise on transfer pricing documentation, on defending valuations under audit, and on applying for advance pricing agreements before the Spanish tax authorities and their foreign counterparts.
Controlled foreign company rules
The CFC regime in article 100 of the Spanish personal income tax act can attribute the income of controlled non-resident entities directly to the resident taxpayer's tax base. Planning ahead makes it possible to identify where the regime bites and to build structures that are efficient without creating exposure.
Lex·on works routinely alongside firms and advisers in other European jurisdictions, so that the advice given accounts for Spanish law and for the law of the client's home or destination jurisdiction alike.
Tax Proceedings
Defending a taxpayer before the authorities requires technical knowledge, procedural experience and a clear strategy from the very first request for information. At Lex·on we act for our clients at every stage: limited verification procedures, full audits, administrative appeals, claims before the economic-administrative tribunals and judicial review before the courts.
Audits and verification procedures
The opening of an audit creates uncertainty and imposes a significant burden on the taxpayer. Our involvement from the outset, reviewing the documentation requested, preparing submissions and managing each stage of the file, reduces the risk and improves the outcome. Properly documented transactions and a consistent line of argument are decisive in obtaining a favourable resolution.
Appeals and claims
Where an assessment or decision is not in accordance with the law, we bring the appropriate challenge: an appeal for reconsideration before the assessing body, a claim before the regional or central economic-administrative tribunal and, where appropriate, judicial review before the courts or the High Court of Justice of the Balearic Islands.
Tax liability and tax offences
Joint and several or secondary tax liability, and proceedings for offences against the public purse, call for advice that combines the tax and the criminal perspective. We have experience in handling voluntary disclosures and in coordinating with criminal counsel in complex cases.