Spain: an attractive base from which to make investments in other countries
Introduction
The increasing globalisation of markets and the great movements of capital, make that more and more Spanish companies operate abroad, and consequently, they obtain income from an external source.
This fact can cause double taxation, as said income would be subject to taxation in the country where it had been produced, and also in Spain, as long as the Spanish Corporate Tax Law taxes the whole income obtained by the taxpayer (the Spanish company).
To save that situation, the Spanish Corporate Tax Law contains a regime to avoid international double taxation, that is completed with this special regime applicable to Spanish companies the object of which includes the holding, administration and management of shares in subsidiaries that develop an entrepreneurial activity and are established in other countries.
