have concluded a treaty for the avoidance of double taxation
and the prevention of tax evasion
. The double taxation agreement (DTA)
is applicable to income
and capital gains, and it is available for both natural persons and legal entities performing taxable activities
in one of the two countries. The treaty
is mutually applicable for the Irish
citizens, tax residents
of the two contracting states. Our team of Irish company formation representatives
can provide more details on the provisions of the treaty
and ways in which they are imposed.
Taxes under the Irish- Spanish DTA
As mentioned above, the treaty is available for income and capital gains, as well as for the gains obtained from movable or immovable property. According to the stipulations of the treaty, the two countries are imposing similar taxes, but there may appear differences which arise from the legislations of each jurisdiction.
Irish tax residents will be taxed in Spain for the following taxes:
• the income tax on individuals;
• the corporate tax.
• the income tax;
• the capital gains tax.
Being a tax resident of one of the two contracting state refers to the fact that the respective state can impose a tax based on the following:
• place of management;
• other similar situations.
The taxation of the business profits explained by our Irish company formation experts
As a general rule, the business profits of a company
are always taxed in the country in which the respective business carries its operations. If the company has an office or other establishment in the other country, which is considered a permanent establishment
, the business profits
will be taxed in the other country. That is, a Spanish company
operating in Ireland
through a permanent establishment
will be taxed in Ireland
, but it is important to know that the company
will be imposed with the above mentioned taxes
only in respect to the business profits obtained in Ireland