Spain stands out as a leading option for Latin American investors and entrepreneurs seeking opportunities in the European market.
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Not only does it have long-standing cultural and linguistic ties to Spanish-speaking Latin America, but it also offers political and economic stability, a modern and transparent tax system with specific incentives for international investors, and the most extensive network of double tax treaties with countries in Latin America. In addition, as a member of the EU, Spain grants investors instant access to the European market, allowing them to leverage the European Union's robust regulatory framework and collaborative business environment.
Spain has also strategically implemented a range of corporate and residence initiatives that have successfully positioned the country as an attractive hub for Latin American and international investors.
Corporate Tax Advantages Under the Special ETVE Regime
The Entidad de Tenencia de Valores Extranjeros (ETVE) stands out as a particularly attractive option for Latin American investors seeking to channel their international investments through a Spanish resident holding company. The ETVE regime offers a host of benefits that make Spain a strategic hub for foreign investments. One of the primary advantages is the substantial 95% tax exemption on dividends and capital gains received from foreign subsidiaries, with the remaining 5% taxed at the standard rate, along with a 100% tax exemption on shareholder distributions.
Moreover, the ETVE regime provides a transparent and straightforward legal framework for foreign investors. The streamlined administrative process enhances the appeal of the ETVE structure. Along with Spain’s multiple double tax treaties, the ETVE regime makes the country a tax-efficient jurisdiction for Latin American investors looking to optimise returns on their international ventures.
Residency Opportunities and Tax Advantages
Spain’s Golden Visa Programme
Residence by investment, known as the Spanish Golden Visa, allows foreign nationals to apply for a special visa that gives the right to live, work, and study in Spain.
The Golden Visa program in Spain offers a range of benefits, making it an enticing option for international investors. This initiative allows foreign nationals to obtain Spanish residency by making qualifying investments, such as in real estate. The key advantages include unrestricted travel within the Schengen Area, providing visa-free access to many European countries.
Additionally, the Golden Visa facilitates business opportunities in Spain, offering a gateway to the European market. The program effectively combines investment and residence incentives, making the Golden Visa an attractive avenue for those seeking both business opportunities and an enhanced living experience.
Beckham’s Law
Beckham's Law, formally known as the expatriate tax regime, is a tax incentive in Spain that has been particularly appealing to international professionals. Named after the footballer David Beckham, the law allows employees or directors of companies who relocate to Spanish territories to be taxed as non-residents for a period of five years. During this timeframe, these individuals benefit from a reduced fixed income tax rate of 24%.
Why Spain
Whether seeking business opportunities through advantageous tax regimes or embracing the high quality of life Spain offers, the country provides a balanced blend of economic and lifestyle benefits:
- Strategic Location: Situated at the crossroads of Europe, Asia, and Africa, Spain provides excellent connectivity and access to markets in multiple continents.
- Growing Economy: Spain has experienced robust economic growth, offering diverse opportunities across sectors such as tourism, real estate, financial services, shipping, and technology.
- Quality of Life: Boasting a high standard of living with a Mediterranean climate, scenic landscapes, and a relaxed lifestyle, Spain is renowned for its safety, quality healthcare, education system, and cultural heritage.
- EU Membership: As an EU member, a valid visa in Spain allows freedom of movement within the EU, streamlining travel, work, and business across other member states.
- Shared Language and Cultural Similarities: The shared language and cultural ties make Spain a welcoming home away from home for Latin Americans, fostering a comfortable environment for both personal and professional integration.
- Safety and Stability: The country’s low crime rate, along with its economic, legal, and political stability, provides a secure environment for families and businesses alike.
- Stable Employment and Currency: Spain's stable employment opportunities and currency create a foundation for long-term financial security and provide a secure platform for personal and professional growth.
- Excellent Schooling Options: Access to top private schools and world-class universities ensures quality education for families.
How We Can help
Successfully navigating economic migration requires careful consideration and expert guidance. Our specialist team in Spain is well-equipped to assist private clients relocating to or doing business with Spain, and corporate clients and funds investing in real estate or private equity in Spain. Our team in Madrid provides the following services:
- Golden Visa applications
- Establishment, re-domiciliation, and administration of Spanish companies (including the special holding regime ETVE)
- Accounting, tax compliance and financial reporting services
- Payroll services
- Company secretarial services
- Local directorship and office services
- Assistance with Real Estate and Private Equity transactions
For personalised assistance or to explore opportunities in Spain, please contact our Madrid team at spain@tridenttrust.com.