
What is an ETVE and why is it key in international tax planning?
An ETVE (Entidad de Tenencia de Valores Extranjeros, or Foreign Securities Holding Company) is a company incorporated in Spain that benefits from a special tax
On 19 December 2023, the Preliminary Draft Law transposing Council Directive (EU) 2022/2523 of 14 December 2022 was approved, for the creation of a supplementary tax, which aims to guarantee a minimum overall taxation of 15% for multinationals. It would also affect large domestic companies with a turnover of EUR 750 million or more in at least two of the last four immediately preceding financial years.
There is a fundamental difference with regard to the Corporate Income tax 15% minimum rate: the latter is determined on the taxable base, whereas the supplementary national rate, which is the subject of the new regulation, is determined on the adjusted accounting profit, calculated in accordance with the criteria set out in the Directive in a standardized manner for all EU Member States.
In cases where the effective tax rate in Spain is higher than 15%, no supplementary tax will be generated, while if it is lower, the tax will amount to the difference between the effective supplementary rate and the national tax.
The preliminary draft law has been subject to a public information procedure since 20 December 2023 and it is not yet certain when the final text will be published, but it is certain that, once published, it will affect tax periods beginning on or after 31 December 2023.
An ETVE (Entidad de Tenencia de Valores Extranjeros, or Foreign Securities Holding Company) is a company incorporated in Spain that benefits from a special tax
The individual representative of a legal entity acting as a director assumes an organic position with full joint and several liability. This appointment carries significant
Establishing a company in Spain can be a quick and efficient process if well planned. However, when the founder is a foreign individual or entity,