In the dynamic global business landscape, holding companies have emerged as a sophisticated and versatile business strategy. This article delves into the specific advantages offered by holding companies in two prominent European countries: Spain and the Netherlands. We explore in detail the legal frameworks, tax benefits, and business environment conditions that make these jurisdictions particularly attractive for establishing holdings.
In 2024, international taxation plays a crucial role in the success and profitability of global construction projects. As an expert in international taxation, I want to guide you through the key issues to consider as you embark on these exciting developments.
The complexity of taxation for those working outside national borders is a scenario where multiple factors are intertwined. From the country of origin to the place of work, double taxation agreements and the length of stay abroad, each variable influences the way in which income is taxed. Should workers be taxed in the country where they work, or does residence in Spain require them to comply with their tax obligations in their homeland?
According to the article in elEconomista.es, individuals who benefit from the so-called “Beckham Law” in Spain, mostly foreigners, experience an average annual tax saving of 13,600 euros. This special tax regime for impatriates allows those who have not resided in Spain in the last five years, under certain conditions, to be taxed through the Non-Resident Income Tax (IRNR) instead of Personal Income Tax (IRPF). The main advantage lies in a flat rate of 24% for earned income, unless it exceeds 600,000 euros, in which case the excess is taxed at 47%.
Eric and Jessica Smith, a charming couple hailing from Kansas, United States, were captivated by the beauty and charm of Spain during their first visit in 2017. They explored the vibrant cities of Madrid, Barcelona, and San Sebastián, immersing themselves in the rich culture and enjoying Spanish hospitality. What began as a tourist visit transformed into a deep love for the country, eventually leading them to make a bold decision: to move to Spain.