Examples tax advice

European company organises trade fairs of international prestige in Barcelona. Where should the profits of this business be taxed and how should they be invoiced?

Businesses are increasingly using warehouses spread across one or more countries as a global strategy for the distribution of their products. The question that arises is whether these companies are established in Spain from a VAT point of view, as this would affect the way they need to invoice.

An Italian luxury goods brand entrusts the design of its stores to a specialist company, to ensure that their interior projects a homogeneous image across the globe. This specialist company subcontracts the works to other national and foreign companies.

The procedure for the refund of input VAT in Spain often creates conflicts with the Spanish tax authorities that can go on for years. The office in charge of examining these applications is extremely restrictive and rigid.

Establishment of a subsidiary company in Panama to obtain fishing permits. The risks of this operation due to the country being considered a tax haven until recently.

Restructuring of a major German group, with division of branches of activity in Spain, without renouncing any of the losses accumulated in Spain.

Buying properties at a good price to renovate them and then either resell or rent them to Spanish residents or non-residents, is a common form of investment. Prior tax planning regarding VAT, Property Transfer Tax and Corporate Tax becomes essential.

The traditional way of selling in the Spanish market through a sociedad limitada or “S.L.” – a limited liability company – is by no means the only option. There are alternative options that can be much more appealing to the foreign company, such as a branch, a representative office or even a storing facility or warehouse.

A European group intends to send workers (expatriates) from across Europe to its factories in Spain, either directly or through employment agencies based abroad.

Foreign entrepreneurs moving to Barcelona to create a new business or develop a business already existing in other countries. Tax residence of the business.