Tax
International Taxation
Clear guidance on cross-border tax obligations for individuals and businesses in Spain — from declaring foreign assets to managing transfer pricing and double taxation treaties.
What is it?
International taxation covers the tax obligations that arise when individuals or businesses have economic ties to more than one country. For individuals living in Spain, this includes declaring foreign bank accounts, investments and assets (Modelo 720), understanding their tax residency status, applying double taxation treaties (CDIs) to avoid being taxed twice on the same income, and managing the tax treatment of foreign pensions, dividends or rental income. For companies, it includes transfer pricing rules governing transactions between related entities in different countries, CFC (Controlled Foreign Corporation) rules and the treatment of permanent establishments abroad.
Spain has an extensive network of double taxation treaties — over 100 bilateral agreements — that determine which country has the right to tax specific types of income. Navigating these treaties correctly requires understanding both the Spanish rules and the foreign jurisdiction's position. At GCT1 we work with correspondent advisors in key jurisdictions and advise clients on the practical application of treaties, the correct withholding rates to apply to cross-border payments and the documentation needed to claim treaty benefits.
The international tax environment has changed dramatically in recent years with the OECD's BEPS project, the EU's Anti-Tax Avoidance Directives and Spain's implementation of DAC6 (mandatory disclosure of cross-border arrangements). Compliance requirements for businesses with international structures have increased significantly, and the penalties for non-compliance — particularly for undisclosed foreign assets — remain very substantial. GCT1 keeps our clients ahead of these obligations.
Who is it for?
- Spanish residents with bank accounts, investments or properties abroad that must be declared under Modelo 720 or the new Modelo 721 for crypto-assets
- Foreign nationals living in Elche or Alicante who need to understand their Spanish tax residency obligations and treaty rights
- Spanish companies with subsidiaries, suppliers or customers in other EU countries or beyond
- Businesses making or receiving cross-border payments subject to withholding tax
- Entrepreneurs and digital nomads relocating to Spain under the Beckham Law or other special regimes
What's included in our service
- Tax residency analysis and advice on change of residency for individuals
- Preparation and filing of Modelo 720 (foreign assets declaration) and Modelo 721 (crypto-assets)
- Application of double taxation treaties to income from foreign sources
- Transfer pricing documentation and compliance for intra-group transactions
- Advice on the special IRPF regime for inbound expatriates (Beckham Law — Ley Beckham)
- Non-resident income tax (IRNR) compliance for foreign individuals and entities with Spanish income
- Cross-border VAT analysis for services, goods and digital services within and outside the EU
Documentation you will need to provide
- Certificates of tax residency in Spain and/or foreign jurisdictions as applicable
- Foreign bank statements, investment account summaries and property valuations
- Documentation of cross-border transactions, intercompany agreements and transfer pricing policies
- Foreign pension statements, dividend certificates and rental income evidence
- Work permit, residence permit and travel records relevant to residency determination
Key deadlines
- Modelo 720 (foreign assets declaration): 31 March each year for assets held at 31 December
- Modelo 721 (crypto-assets abroad): 31 March each year (applicable from 2024 onwards)
- Non-resident income tax (IRNR) returns: varies by income type — quarterly for rental income, annual for other income
- DAC6 cross-border arrangement disclosures: 30 days from the trigger event
- Beckham Law election: must be filed within 6 months of registering with Spanish Social Security
Why GCT1
- Over 30 years advising internationally mobile clients and businesses in Elche and the Alicante region, including the large foreign-resident community in the province of Alicante who hold assets in multiple jurisdictions
- Established relationships with correspondent tax advisors in the UK, Germany, France, the Netherlands and other key countries, allowing us to give coordinated cross-border advice rather than Spanish-only guidance
- Direct access to the advisor leading your international tax file — someone who can explain complex treaty rules and Spanish compliance requirements in plain language, whether you prefer Spanish or English
- A track record spanning more than 1,000 clients that includes successful Modelo 720 regularisations, Beckham Law applications and transfer pricing documentation for SMEs with European subsidiaries
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