Establishing a LATAM Business in Spain
-
Upload
hector-sbert-perez -
Category
Documents
-
view
46 -
download
0
Transcript of Establishing a LATAM Business in Spain
![Page 1: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/1.jpg)
Establishing a Latin American Business Abroad
“Doing Business in Latin America – From A to Z” UIA/AIJA Seminar
Panama City, 27 February 2015 Héctor Sbert
Lawants – Barcelona, Spain
![Page 2: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/2.jpg)
Overall increase in FDI coming from LATAM
0
100000
200000
300000
400000
500000
600000
700000
1980 1990 2000 2010 2013
In millions of USD at current exchange rates (2014) Source: UNCTAD
![Page 3: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/3.jpg)
Destination of LATAM’s FDI in Europe (2013)
Spain and Portugal
Poland
UK
France
Germany
Italy
Others
Source:CEPAL/ECLAC
![Page 4: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/4.jpg)
Trade and Tax Considerations
• Access to EU, EMEA markets
• Moderate Taxation
• Corporate Tax Reduction for 2015 and 2016
• Double Taxation Conventions and “Participation Exemptions”
• Patent Box
• R&D Taxation
• Expats Regimen (Ley BECKHAM)
• ETVE’s
• Other Investment Forms: SICAV and SOCIMI
![Page 5: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/5.jpg)
Moderate Taxation
• Tax pressure below EU-27 Average
• Ratio between tax revenues, including Social Security and GDP: • Spain 33,6%
• EU Average 40,6% • Denmark 49,1% • Belgium 48%
• France 47% • Sweden44,6% • Italy 44,3%
• Germany 40,4% • UK 37,3%
![Page 6: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/6.jpg)
Corporate Tax Reductions
Until 2015
• General CT Rate: 30%
• 25% for SMEs
• 20% for microbusinesses (max 300k € turnover)
• 15% for newly created entities (max 300k € turnover)
2015 and 2016
• 28% in 2015
• 25% in 2016
• T h a n k s t o o v e r a l l d e d u c t i o n s , ave r a g e corporate tax rate is at 19,3%.
![Page 7: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/7.jpg)
Double Taxation Conventions
Spain has the largest network of Double Taxation Conventions with LATAM & the Americas (including USA & Canada) than any other European nation:
• : : 19
• 13 : 13
• : 12
• 8 : 8
• 5 : 5
:
13
5
8
Spanish DTC are also in general terms more favorable for the investor
![Page 8: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/8.jpg)
Participation Exemption Regime
• It allows Spanish companies a tax exemption on dividends from its foreign subsidiaries and also on any capital gains on the disposal of those shares.
![Page 9: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/9.jpg)
Research & Development
• According to the OECD, Spain is the country with the more advantageous tax regime on R&D after France.
• “Patent Box” Tax Incentive • It allows a 60% tax reduction
on gains deriving from the sale of patents, drawings and other intangible assets created by the company.
• Most favorable system in the EU
• It extends to the income from the sale of models, designs, formulas, plans or even know how.
![Page 10: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/10.jpg)
Tax Regime for Expats
“Beckham Law”
• For expats coming to Spain, a tax flat rate of 24.75% for a maximum income of € 600,000 per year for five years.
![Page 11: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/11.jpg)
Life quality for expats…
• According to FT, 7 out of
the 10 most attractive cities to invest in Southern Europe are Spanish (2014-2015)
• Spain is 9th in life quality for expats according to Expat Explorer Survey 2013 of HSBC. Ses Illetes Beach, Formentera
![Page 12: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/12.jpg)
“ETVEs”
“Entidades de Tenencia de Valores Extranjeros” =
Holding Entities of Foreign Securities
• It is a holding regime that favors particularly Latin American companies.
![Page 13: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/13.jpg)
“ETVEs”
• ETVEs are holding companies whose purpose is the management and administration of securities representing the equity of entities not domiciled in Spain
![Page 14: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/14.jpg)
“ETVEs”
• Foreign dividends and capital gains from abroad are tax exempt. This facilitates the repatriation of dividends paid by subsidiaries.
• Dividend payments to non-resident parent companies are free of withholding tax in Spain unless the parent company is domiciled in a country that does not pay income tax or resident in a tax haven.
• Access to Spanish network of Double Taxation Treaties
![Page 15: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/15.jpg)
“ETVEs”
• Brazil and Mexico are the second and fourth country to have invested the most in Spanish ETVEs
• Petrobras and Gruma already use this advantageous tax regime for its European operations.
![Page 16: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/16.jpg)
Other low taxation investment forms
• SICAV: For financial investments
• SOCIMI: For real estate investments
![Page 17: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/17.jpg)
Golden Visa
Since September 2013, new immigration rules to promote foreign investment in Spain
![Page 18: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/18.jpg)
Golden Visa
Applicable to:
• Investors
• Entrepreneurs
• P e r s o n s w i t h h i g h academic qualifications
• Researchers
• Expats
![Page 19: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/19.jpg)
Golden Visa
• For investors: Foreigners who have made a significant capital investment in Spain: • Real estate assets (over €
500,000)
• Shares in Spanish companies or f inancial deposits in Spanish banks (over 1 million €)
• Business projects they are to b e d eve l o p e d i n S p a i n considered of general interest,
• Spanish public debt (over € 2 million).
![Page 20: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/20.jpg)
Golden Visa
• Entrepreneurs: foreigners who are to develop an entrepreneurial and business activity with particular economic interest to Spain.
• Highly qualified personnel: employees or people in possession of a graduate or postgraduate degree from a prestigious University or Business School.
• Researchers: Scientific and technical staff and professors from Universities and Business Schools.
• Expats: Staff in international transfer in the context of an employment, professional or training relationship with a company or group of companies established in Spain or another country.
![Page 21: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/21.jpg)
Golden Visa
• Visa and/or Permission to live and work and Spain.
• Free movement across the Schengen area.
• Expedited processing: Visa petition resolved within 10 business days. Residence permits resolved within 20 business days.
• In the case of the investor, no obligation to effectively reside in Spain (it is only required to visit Spain once during the period of residence).
![Page 22: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/22.jpg)
Easier access to Spanish residence and nationality for LATAM citizens
Apart form Golden Visa…
• Some LATAM citizens may apply for a Spanish residence permit without having an actual job or job offer (Peru, Chile)
• All citizens from LATAM and other Spanish-speaking countries may apply for Spanish nationality after only 2 years of legal residence (instead of 10, generally) without having to waive to their nationality of origin
![Page 23: Establishing a LATAM Business in Spain](https://reader033.fdocuments.us/reader033/viewer/2022052915/58ef18f11a28ab677c8b45d1/html5/thumbnails/23.jpg)
Thank you!
Héctor Sbert
LAWANTS – Barcelona, Spain
+34 93 255 31 35
Source: ICEX: España, Plataforma para las inversiones y sedes de empresas multilatinas en Europa, África y Oriente Medio, September 2014)
Note: The information contained in this presentation should not in itself be regarded as specific advice on the mentioned subject, but only as a preliminary approach. It is therefore recommended that recipients of this information seek professional advice about their particular case before adopting measures or actions of any kind.