Qatar Income and Spanish Taxes

Hi, another Spanish couple thinking about relocating to Qatar.

The additional limited info. I have over what you got:

- Spanish tax authorities do not consider Qatar to be a "Tax Heaven" (unlike Bahrain or Oman)

- Also, currently there is NOT "Tax Treaty for avoiding double taxation" between Qatar and Spain (unlike UAE)

- Now, I have not heard that Spain (pls. correct me if wrong) has a requirement to identify whether money inflows to Spain have been previously taxed (unlike UK, for instance, where I believe you have to mindful when you bring in cashflows generated outside UK)

... following this (I insist it is not thorough, just based on a couple of facts), it seems that the tax-exempted money generated in Qatar could be transfered back to Spain without further tax consequences...

after these months since your question, have you got other evidence on the contrary?

Thanks a lot in advance for your answer

Thank you very much! It looks like we'll not have to pay taxes in Spain but I'll find out about the "territoriality of tax". What I do already know is that Spain, just as Portugal or Germany applies the rule of 183 days (i.e. you are subject only to the local income tax of the country where you lived permanently for 183 days (one day more than half the year). what you theoretically do is declare in that country ALL your income and ALL the retentions to determin your tax rate and value. Would this be "territoriality of tax"?

I re-iterate, the Spanish tax laws may tax your savings when you go home, so I would check with your Spanish advisor to be sure.

The Qatari tax law has nothing to do with the treatment in Spain.

ok

i have just asked another lawyer in my department to back up my opinion and he confirmed that personal savings in a territory that provides for tax exemptions shall not be subject to foreign tax laws

its only certain foreign commercial investment contracts to which they apply

hope this helps...

"He who reigns within himself and rules passions, desires, and fears is more than a king."

i've actually just been working on something to do with tax exemption... so ur in luck (sorta!!) :p

the Qatari legal system provides for tax exemptions with the aim of encouraging foreign investments in Qatar... so in your employment contract.. i suggest that it includes a provision which stipulates the inclusion of tax exemption and cut downs provided for in Qatari Laws..

i studied in the Uk and covered EU laws but i havent covered taxation law so im not very sure... but i know for a fact that some countries such as France and Italy acknowledge these exemptions and deduct the Qatari tax exemptions from tax due from their tax payers..

so what u need to check is that wthr Spain's legal system is based on the principal of territoriality of tax (which im sure it is - but i have no solid documents infront of me to prove it so im not making a clear statement about it)

"He who reigns within himself and rules passions, desires, and fears is more than a king."

If you are employed in Qatar (rather than running your own business) your salary is tax-free.

Whether it will be taxed in Spain or not, you should ask your Spanish tax advisor. Or an internet chat forum in Spain ;-)