The term “double taxation” refers to the situation in which a taxpayer is taxed twice in the same year on the same item of income or property in two distinct nations. There is no universal provision that addresses this issue: States have negotiated bilateral agreements at the community or international level to set the applicable rules between them.
As a result, the taxpayer is required to examine the agreement that the two countries may have reached in order to determine the next actions. What is double taxation understand below in detail.
What do double taxation treaties govern?
Double Taxation Agreements are International Agreements between two countries, in your case Spain and a third country, the main purpose of which is to prevent a natural or legal person from paying taxes in two different countries for the same concept (personal income tax, for example), or that a natural or legal person is taxed in two different countries for the same concept. Read more on what is double taxation.
When do these kinds of things happen?
In a world where globalization is looming, it is becoming increasingly popular for individuals, even entire families, to relocate to another nation and establish their Tax Residence there. Similarly, it is fairly usual for people from other countries to purchase a property in Spain as an investment with the intention of generating a return, either through rentals or through the eventual sale with the resulting financial gains. It is also typical for people or businesses with their tax residence in another country to build a branch in Spain or to conduct part of their business from your country.
A legal firm in Andorra is a firm with a strong international character, which is enhanced by the firm’s consolidation in Andorra, in the heart of Spain. To obtain more information on the various Double Taxation Agreements or any other International Agreement inside the European framework or on a worldwide scale, please contact the office, and a specialist team of Andorra Lawyers will examine the query and issue the necessary Legal Report.