Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Spain to take Gibraltar off tax haven list after treaty enters into force

Spain to take Gibraltar off tax haven list after treaty enters into force

Spain will take Gibraltar off its list of tax havens after an agreement with the United Kingdom on tax cooperation entered into force earlier this month.

While the British Overseas Territory was no longer on the European Union or the Organisation for Economic Cooperation and Development (OECD)’s lists of non-cooperative jurisdictions, it remained on Spain’s own blacklist, created in 1991.

The goal of this unprecedented treaty, which was published in Spain’s Official Gazette on Saturday, is to ensure that Gibraltar applies EU-equivalent legislation in terms of tax transparency and the fight against money laundering following Britain’s exit from the EU. The agreement also seeks to reinforce cooperation and information exchange to prevent the British Overseas Territory from becoming a magnet for Spanish tax evaders.

The agreement entered into force on March 4, two years after being signed by the Spanish and British governments, and it sets out clear rules to define when a natural or legal person shall be considered tax resident in Spain (read the full text of the treaty in English here).

Spanish tax residency


According to the text of the agreement, natural persons will be considered tax resident only in Spain in the following cases: when they spend over 183 overnight stays of the calendar year in Spain; when their spouse (from whom they are not legally separated) or the natural person with whom a similar relationship has been established, as well as any dependent ascendants or descendants, reside habitually in Spain; when the only permanent home at their disposal is in Spain; or when two thirds of their net assets, whether held directly or indirectly, are located in Spain.

As for legal persons and entities, they will be considered a tax resident only in Spain, even if they are established or managed in Gibraltar, if any of the following circumstances exist: the majority of the assets, whether directly or indirectly owned, are located in Spain; if the majority of the income accrued in a calendar year derives from sources in Spain; if the majority of the natural persons in charge of effective management are tax resident in Spain; or if the majority of the interests in the capital or equity, voting or profit-sharing rights are under the direct or indirect control of either natural persons who are tax residents in Spain or legal entities linked to tax residents in Spain.

The agreement notes that these rules do not apply to legal persons or entities that were incorporated in Gibraltar before 16 November 2018, as long as several conditions are met. It also underscores that any Spanish natural or legal persons who set up their residence in Gibraltar after the date of entry into force of the treaty will still maintain tax residency only in Spain.

Information exchange


There will be administrative cooperation through liaison bodies to deal with any discrepancies that may arise and to exchange tax information. Gibraltar will give Spanish tax authorities “annual information on workers registered in Gibraltar as residents in Spain, fully identifying every aspect of the underlying employment relationship or any trade, business, profession or vocation carried on or exercised by these workers, including details of duration, economic terms and employer.”

Gibraltar will also give Spanish tax authorities information on vessels, aircraft and motor vehicles registered in Gibraltar relating to tax residents in Spain. It will furthermore provide “direct and free access to the records of the Registrar of Companies in Gibraltar […] as well as to the Gibraltar Land Registry.”

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
×