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

[drunkengolfer]

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

 

[Marzio]

Your baby at some point will start going to preschool and at that point you are tax resident in Spain.

Unless you have specific reasons why you want to move to Spain i'd settle in Portugal where long term holdings (over a year) are still tax free.

 

[aniglo22]

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.

 

[Marzio]

You could take advantage of the Beckham law in Spain

Unfortunely only for 6 years.

 

[aniglo22]

Unfortunely only for 6 years.

I don't think anyone wants to stay in sPain more than six years .

 

[Marzio]

I don't think anyone wants to stay in sPain more than six years .

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.

 

[aniglo22]

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.

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.

 

[JackAlabama]

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.

why not? Many have been doing this. Embassdors kids, professors kids etc. all have this fate.

 

[Marzio]

why not?

Because unless you are Taro Misaki you'll have difficulties making constantly new friends.

 

[JackAlabama]

Because unless you are Taro Misaki you'll have difficulties making constantly new friends.

Better to quote my whole statement and not just a part of it ,if you need to quote.
Then who do these families I mentioned do this?
Kids make friends way easier than adults.

 

[drunkengolfer]

I've lived in 6 countries on 4 continents having moved houses 15 times over the last 20 years, I'm done being a 'nomad'.

 

[drunkengolfer]

forgot to mention, I have permanent residency in Mexico and my baby has that passport. Don't see how this can help but maybe worth mentioning

 

[Sols]

p.s. yes I know... I picked on of the worst countries to live in if you have any sort of wealth

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.

 

[drunkengolfer]

Ok, so my idea is worthless.
Is there any other option besides moving to Dubai?

 

[JackAlabama]

Ok, so my idea is worthless.
Is there any other option besides moving to Dubai?

So you wanna move for good?
There are many options. Many in Latin america, Oman, Qatar, Thailand, Malaysia, Cambodia, Philippines...
Portugal is much better than Spain. Or Andorra.

 

[Sols]

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.

 

[aniglo22]

Better to quote my whole statement and not just a part of it ,if you need to quote.
Then who do these families I mentioned do this?
Kids make friends way easier than adults.

Kids also get bullied more easily

 

[Marzio]

Better to quote my whole statement and not just a part of it ,if you need to quote.

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

Then who do these families I mentioned do this?

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

Kids make friends way easier than adults.

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.

 

[Don]

Ok, so my idea is worthless.
Is there any other option besides moving to Dubai?

You could perhaps set up a corporate entity outside of Spain (managed by someone else who is outside of Spain) to hold your crypto.

 

[Martin Everson]

Is there any other option besides moving to Dubai?

Wherever you move there will always be some sort of compromise. If the GF wants Spain then so be it and just pay the taxes.

https://koinly.io/guides/crypto-tax-spain/

Yes the taxes are harsh but Spain may even discover from Netherlands what you have if you officially register there so no point doing some sort of scheme to vanish the crypto.

Otherwise you mainly got deserts and islands to live on as your choice that don't often have access to European financial services as easily as EU residents - if that's your thing.