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What are the options for living in Spain but not paying capital gains/wealth tax there?

D

drunkengolfer

Mentor Group Silver
May 6, 2024
4
0
1
38
Spain
#1
Hello,

I'm a Dutch citizen/resident who recently moved to Spain with my girlfriend and baby. I have accumulated 7 figure bitcoin holdings that have always been declared with the Dutch tax thieves. I don't want to become a resident here in Spain and be subject to their capital gains and wealth taxes.
I am trying to figure out if there is a way that allows me to live here in Spain but pay my taxes elsewhere.(0% tax country). Could it be an idea to set up residency in something like UAE and going there twice a year and but live here in Spain while staying under the radar (pay cash for everything, keep house, car, credit cards etc. all in GF's name)
Or are there easier/safer ways to go about this?
p.s. yes I know... I picked on of the worst countries to live in if you have any sort of wealth
 
#3
You will be deemed as Spanish tax resident , because you fulfill all points :
  • Physical Presence: You are considered a tax resident if you spend more than 183 days in Spain during a calendar year.
  • Center of Economic Interests: If your main economic interests are in Spain (for example, your business or professional activities), you may be deemed a tax resident even if you spend less than 183 days in the country.
  • Family Ties: If your spouse or dependent children are residents in Spain, you might also be classified as a tax resident, particularly if you spend a significant amount of time in the country.

You could take advantage of the Beckham law in Spain :
  • 24% on Spanish-sourced income up to €600,000
  • No taxation on income and gains sourced outside Spain
  • Within 6 months of becoming an tax resident you need to apply
You will still be liable for wealth tax as normal tax resident or under the Beckham law regime .

For cryptocurrencies the physical location of your private keys is important and also the location of your exchange and their relation to Spain .
Examples :
  • Private keys stored on a ledger in Spain => Spanish sourced income => Spanish capital gains tax (V1662-23 ruling)
  • Custody service in Gibraltar => foreign income => exempt from taxes .
  • Coins on foreign exchange => foreign income => exempt from taxes .

So use a custody service or store your ledger outside of Spain and use a foreign exchange.
 
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#7
Marzio said:
Well i don't think anybody will move to Spain with a girlfriend and a baby if you don't want to settle there for a long time.

You can't live the nomad lifestyle once you have a child.
Click to expand...
Gibraltar is just 76km away from Marbella.
Yeah, but I agree with you that you can't live the nomad lifestyle without turning a little boy's/girl's life into a nightmare.
 
#13
drunkengolfer said:
p.s. yes I know... I picked on of the worst countries to live in if you have any sort of wealth
Click to expand...
Not sure what you want to discuss or expect?

I mean, sure... You can commit tax evasion in Spain and maybe you get to see your kid grow up, or maybe you only get visitations a few times a year. Prison for tax crimes is usually not maximum security ordeals, but we're talking about large enough sum here that you may end up facing more than just back taxes and penalties. A simple tax evasion can easily become money laundering, bank fraud, and other things a creative, aggressive tax authority and prosecutor can come up with if you're caught.
 
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#16
Your options are to pay Spanish tax or to locate to a place where cashing out your crypto wouldn't be taxed, such as UAE.

If leaving Spain is out of scope, it might be worth having a chat with a good Spanish tax advisor to see if there's anything you can do locally to reduce the amount of tax you pay. We don't know your full circumstances. Maybe there's something a tax advisor can suggest to ease the pain.
 
#18
JackAlabama said:
Better to quote my whole statement and not just a part of it ,if you need to quote.
Click to expand...

I only answered your question, that's why i only quoted your question.

JackAlabama said:
Then who do these families I mentioned do this?
Click to expand...

Because the priority for these familis is the career, not the child's wellbeing.

JackAlabama said:
Kids make friends way easier than adults.
Click to expand...

It depends, i've seen very outgoing adults and very introvert kids and furthermore i see more and more kids lacking basic social skills because thanks to all those social media platforms.

yes i'm a daddy and i know firsthand what i'm talking about.
 
#19
drunkengolfer said:
Ok, so my idea is worthless.
Is there any other option besides moving to Dubai?
Click to expand...
You could perhaps set up a corporate entity outside of Spain (managed by someone else who is outside of Spain) to hold your crypto.
 
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