Spain recognises Liechtenstein's long-standing efforts in the area of tax transparency
For years, Liechtenstein has applied a consistent strategy of tax cooperation and the implementation of international standards. As a result, numerous discriminatory tax measures have been dismantled in recent years. Spain was one of the last EU countries that has now also lifted these vis-à-vis Liechtenstein.
On 10 February 2023, the Spanish government published the approved decree identifying the countries and territories of harmful tax regimes (Spanish List of Non-Cooperative Jurisdictions) in the official Spanish Official Gazette (Boletín Oficial del Estado, BOE). This decree is based on an updated set of criteria for identifying countries and territories with harmful tax regimes, in line with the international standard.
Spain was one of the last EU countries that had previously classified Liechtenstein as a country with harmful tax rules based on the outdated criteria. The Spanish list of non-cooperative jurisdictions, which has been in force since 11 February 2023 (one day after publication in the Spanish BOE), does not contain an entry on Liechtenstein. As a result, Spain no longer applies numerous discriminatory tax measures vis-à-vis Liechtenstein. In particular, this leads to the elimination of increased withholding taxes and stricter documentation requirements in the area of transfer pricing, as well as the abolition of deduction restrictions for business expenses and special rules regarding residency.
Many years of efforts on the one hand at the political and technical level and on the other hand by financial centre associations have contributed decisively to this result. This development leads to a noticeable facilitation of cross-border investments and services in/with Spain.
Further links:
Government press release of 13.02.2023 (only available in German)
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