Double Taxation Treaty Advice
In cases where a person can be considered a tax resident in two countries, the provisions of the Double Taxation Agreement (DTA) signed between Spain and the other country must be taken into account in order to specifically avoid double taxation.
This situation may occur if you:
- work while assigned abroad for a short period of time
- live in one country but work in another
- live and look for work abroad and have transferred your unemployment benefits abroad from your home country
- have retired in one country and collect the pension in another.
At GD Global Mobility we are experts at analyzing DTA that establish the rules to avoid paying tax twice on the same income.
Types of Double Taxation Agreements
Most countries have DTA to avoid having to pay tax twice for the same source of income; we, therefore, advise any person, whether a resident or not, who has income, earnings, or assets in more than one country to check if there is a Double Taxation Agreement in order to be aware of the tax obligations and tax treaty benefits that exit in each country.
There are several types of agreements:
- Bilateral Agreement (between two countries): they affect income taxes (for residents and non-residents) and assets
- Multilateral Agreement (with multinational organizations, such as the European Union): they essentially affect taxes on commercial transactions.
Optimizing Expatriate Taxation
Correct knowledge and application of Double Taxation Agreements is key to mitigate any possible conflict of duality or fiscal residence, but at the same time, it is also a powerful tool for fiscal optimization for international assignments.
Our department is expert at analyzing DTA to take advantage of all the tax benefits offered by tax legislation, both in the country of origin and the destination, while guaranteeing compliance with the tax and legal obligations of the tax authorities in the corresponding countries.
We can definitely help you achieve these goals. Contact us and find out about our service with no obligation.