Double Tax Treaty UAE – Spain
Double Tax Treaty UAE - SpainUpdated on Wednesday 14th June 2017
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The double taxation agreement between the UAE and Spain was signed in 2006 with the purpose of avoiding the fiscal evasion among many others. This important convention focuses on the taxes for both companies or natural persons with activities in one of the contracting states. If you want details about the double tax treaty between the UAE and Spain, we recommend you get in touch with our lawyers in Dubai. They can also provide you with legal advice for your company in Dubai.
Taxes covered by the UAE - Spain double tax treaty
To attract foreign investments and to fortify the economic ties, the UAE signed numerous double tax treaties with countries worldwide, among which we remind Spain. The convention between the UAE and Spain mentions that the royalties, the dividends, the salaries, the capital gains and the interests are protected, and no double taxation will be added. The corporate tax is also levied only one time, if the Spanish company has a permanent establishment in Dubai or vice versa, in the state where the activities are performed. Additional information about the double tax treaty between the UAE and Spain can be obtained from our attorneys in Dubai.
The benefits of the UAE - Spain DTT
According to the provisions mentioned in the DTT signed by the UAE and Spain, foreigners having employment contracts registered in Dubai have no taxes on incomes because the UAE adopted a stimulating taxation system which comes with numerous advantages. But if Spanish persons also have profits in the home country, these are going to be levied in accordance with the regulations of that state.
The policy of low taxes adopted by the UAE attracts foreign direct investments from Spain and encourages the economic development both countries want. The exception here is that the industrial and commercial incomes are taxed in accordance with the convention signed by the UAE and Spain.
If you are interested in more information about the double taxation agreement between the UAE and Spain, we invite you to contact our law firm in Dubai.