who tak into consideration to open a company in Spain
can benefit from the provisions of the double taxation treaty
signed by the authorities of Spain and Australia
. The agreement
provides a comprehensive framework on the taxes
applied by the two states, as well as on the measures related to the avoidance of tax evasion
. The double taxation agreement (DTA)
was signed in 1992 and it addresses to both natural persons and legal entities. Our team of company formation representatives in Spain
can offer an in-depth presentation on the way in which such taxes
are applied here.
Taxes under Australia – Spain DTA
addresses to the tax residents
of a contracting state who are performing taxable activities
in the other contracting state.
Under this agreement, Australia applies the following taxes:
• the income tax;
• the resource rent tax.
The latter tax is applicable in the case of the offshore companies involved in petroleum exploitation activities.
In Spain, Australian tax residents will be taxed on the following:
• the income tax on individuals;
• the corporation tax.
Businessmen interested in company formation in Spain
should know that the difference between the taxes
imposed by the two countries is an effect of the legislation of each state, but the agreement
in itself is applicable to similar taxes
According to the provisions of the treaty
, residency is established in accordance with the tax residency
of the person or legal entity
Permanent establishment in Spain
Australian investors who want to start the procedure of company registration in Spain must know that they will be liable to taxation if they carry their operations in this country under a permanent establishment.
According to Article 5 of the treaty, a permanent establishment refers to a place of business in which the operations of the company are fully or partly carried out.
It can designate a place of management, a branch
, an office, a factory or a construction site in which the operations are carried out for more than 12 months.