Expatriate Taxation

SBAL has been rendering tax advisory services to seconded employees for a long time, by effectively and comprehensively implementing the most suitable treatment, and by troubleshooting all those incidents that may arise as a result of their secondment.
We rely on a wide network of highly qualified collaborators, and all the specificities of each discipline and of each destination are addressed together with them in a coordinated, agile and responsive way.

As far as migration issues and relocation are concerned, we are assisted by a leading company in the sector “Employee Mobility Solutions” (EMS, for short).

Our competitive and customized package of tax advisory services for employees seconded to a foreign country includes the following, among others:

• Situation analysis, diagnosis of the potential contingencies and the making of the relevant recommendations so as to guarantee compliance with the law, but also in order to avoid potential risks and optimize both individual and corporate taxation.
• Design of the company’s policy in relation to long-term and short-term seconded employees, tax equalization, action-s to be taken and optimal tax treatment.
• Provision of advice to the company about expatriation terms and conditions, tax status of the seconded employee, tax treatment as far as withholdings are concerned, both as a tax resident (i.e. Resident’s Personal Income Tax) or as a non tax resident (i.e. Non-resident Income Tax) and, where appropriate, application of the Personal Income Tax fiscal benefits (e.g. exemption of employment income arising in a foreign country, excess allowances or per diem allowances) or enforcement of the regulations on Non-resident Income Tax.
• Provision of advisory services on tax treatment in the host country, by taking into account the different salary items agreed upon in the particular case of each of the employees seconded to a foreign country, on the basis of the host country and the seconded employee professional profile, but also considering whether local hiring is required or not. Gross amount assessment, should there be a guaranteed net salary and benefits package.
• Direct communication with the seconded employee, in order to explain him / her taxation in both Spain and the host country, and to solve all those doubts, deal with all those formalities and resolve all those incidents that might arise in relation to his / her new tax status in both countries.
• Provision of assistance in the seconded employee’s host country, so as to enroll him / her in the taxpayer census, to obtain tax residence certificates in that country and also to prepare his / her income tax return.
• Mandatory communications in Spain and preparation of the seconded employee’s Non-resident Income Tax returns or Personal Income Tax returns, as appropriate, depending on tax residence definition.