Gibraltar Tax Agreement With Spain

Gibraltar joined the European Union with the United Kingdom in 1973. In accordance with the 2006 Constitution of Gibraltar, the United Kingdom is fully responsible for Gibraltar`s external relations. This tax treaty was therefore signed by S/S. Josep Borrell Fontelles Minister for Foreign Affairs, european Union and Cooperation for Gibraltar, Cabinet Minister and Chancellor of the Duchy of Lancaster, HM UK Government, and with regard to the Kingdom of Spain. The exchange of information is highly technical and far-reaching. Individuals should remember that the authorities have promised to help each other with all “predictably relevant” information. The information automatically exchanged includes information identifying “every aspect of the underlying job” or trade or trade, occupation or profession, and will apply to all periods from January 1, 2014. This above point is only for informational purposes and should not be considered a tax advice. If you need advice, please contact us HERE and we will arrange a meeting with a qualified person. Tags: Accords Double taxation conventions Europe European Union (EU) Spain Gibraltar United Kingdom The Gibraltar authorities have also confirmed that they will implement provisions equivalent to the Mutual Legal Assistance Directive, which means that they will cooperate and help the Spanish authorities to recover tax debts. www.gibraltar.gov.gi/new/sites/default/files/press/2019/Press%20Releases/Text%20of%20Tax%20Treaty%20in%20English.pdf The rules for Spanish nationals will have changed from 4 March 2019, when the treaty will be officially ratified and the first exchange of information will take place within four months of the formal ratification of the agreement.

The Treaty aims to clarify the tax situation of individuals and companies established in Gibraltar and Spain and then contribute to the normalization of relations between the two jurisdictions. Under the treaty, individuals will continue to reside tax-based in Spain or Gibraltar under their national legislation. However, dual-residence persons are not exempt from tax residency in Spain if certain criteria are met. Additional information on this visit – An application for double taxation relief must be made within six years from the end of the tax year to which it relates. The period is extended if any adaptation or evaluation carried out in Gibraltar or abroad allows for excessive or insufficient relief beforehand. Under these conditions, a right may be invoked within six years of rectification or assessment. It will also eliminate the uncertainty surrounding the tax position of those treated as tax-based in Gibraltar and Spain, and clarify a number of important tax issues, but be aware that this contract will not only concern individuals, but also businesses, trusts, foundations and other legal structures and institutions with links to Spain in Gibraltar. www.gibraltarlawyers.com/uploads/PDF/ISOLAS_Tax_Agreement.pdf On 4 March, a tax agreement was reached between the United Kingdom and the Kingdom of Spain on Gibraltar. The agreement aims to improve tax cooperation between Gibraltar and Spain, as well as the expected removal of Gibraltar from the Spanish blacklist. In the final stage of the ratification process, the Spanish Senate on Wednesday (September 16th) approved the international agreement on taxation and the protection of financial interests between the United Kingdom and Spain on Gibraltar (the “treaty”).

In addition, under the treaty, Gibraltar agreed to provide Spain with a list of all legal entities that would be considered to be established in Spain.