Spain Tax Advice

[borke]

Hello,Im looking for some Spain Tax advice(If you know any lawyer/account that can help me that would be great). So Im working with one model from Spain-Catalonia(Onlyfans)so far we generated around 35k in 6months.Thing is tha we didnt pay any tax on that.We withdraw money to Skrill(She uses her part from Skrill) and she send me my part from Skrill to my crypto wallet(ETH). I didnt send her any invoice or anything.What Im curious is how much I need to pay tax for 35K.Also in my country crypto is not regulated yet,so is there any way to deduct that crypto withdraws from her part of tax.

 

[blancmon229]

I am assuming she is getting paid on her personal name from OF. In that case, I am pretty certain there is no deductions that can be made for personal income as the structure to manage her should have been created long before even starting.

Residency planning, tax planning etc... It has to be managed as a real business not like some side job.
If OF paid her out a total of 35k, and she is a tax resident of Spain then yes of course she will be liable for tax on the full amount in Spain, which has a terrible tax rate. Ideally, you should have set up her tax residence in a lower tax EU country, if she has EU citizenship it would have been quite simple, and in that case you would have kept more of the money.

She will need to pay tax on the full amount OF sent her, and the portion (crypto) she sends to you can be seen as a gift, if you would like to classify it that way. I don;t know the gift laws of Spain.

Eventually, cashing out the crypto to fiat you will need a source of funds. You should have created a company whereby you can send her an invoice for consulting services to be paid in crypto or cash.

In general, there should have been a better structure in place to avoid this problem from the beginning.

 

[borke]

Thank you on reply. Do you know how much approximately is tax on 35k?I guess the only solution is to pay full tax on this amount and for the future I invoice her my part and for the rest she pay tax on that. I was hoping like is there any loophole about those crypto withdraws I can use

 

[blancmon229]

Depends. What is your citizenship country and country of tax residence?

 

[borke]

Depends. What is your citizenship country and country of tax residence?

Im from Montenegro. Girl is from Spain Catalonia

 

[blancmon229]

I'm not familiar with Montengro taxes, but from what I've read gift tax is 3% there vs personal income tax should be around 15% for 35K.
If you classify as she sent you a gift for whatever occassion you might be able to just pay 3% tax on it. Vs personal income tax of 15%. Either way both rates are pretty minimal. In the meantime fix your structure and planning.
Also, confirm the tax rates I mentioned.

 

[backpacker]

I'm not familiar with Montengro taxes, but from what I've read gift tax is 3% there vs personal income tax should be around 15% for 35K.
If you classify as she sent you a gift for whatever occassion you might be able to just pay 3% tax on it. Vs personal income tax of 15%. Either way both rates are pretty minimal. In the meantime fix your structure and planning.
Also, confirm the tax rates I mentioned.

He didn't say that he is a tax resident of Montenegro. He said he is from Montenegro. Details are important!

First you have to determine where each of them is tax resident: Spain, Montenegro or elsewhere. Only thereafter you can start suggesting.

 

[blancmon229]

If you would read the post correctly, you would see I specifically asked what his country of tax residence is in the other post if you could just scroll up. I am assuming he is both a tax resident and citizen of Montengero as that is what he answered.
I am going based on what I was given, regardless, I suggested he confirm the information himself.

 

[backpacker]

If you would read the post correctly, you would see I specifically asked what his country of tax residence is in the other post if you could just scroll up. I am assuming he is both a tax resident and citizen of Montengero as that is what he answered.
I am going based on what I was given, regardless, I suggested he confirm the information himself.

You asked but he did not answer the question (in full). So, you should have waited before "assuming".
The point is that most people do not know the difference between residence, tax residence and citizenship.
So, let's better wait until he returns with some more info.

 

[borke]

Yes I my tax residence is Montenegro. Is it possible for my client write crypto sending to me as expenses and reduce tax on that way?