The Diplomat in Spain

The Diplomat. 25/08/2018

The Council of Ministers yesterday approved the referral to the Parliamet of the Agreement between Spain and Cape Verde to avoid double taxation and prevent tax evasion in the matter of income taxes.

The agreement, which incorporates OECD standards, aims to provide an updated legal and fiscal security framework for affected taxpayers that facilitates bilateral economic flow and cooperation between the respective tax authorities.

With this perspective, the agreement establishes the criteria relating to the taxation of real estate income, business profits, maritime and air transport, associated companies, dividends, interest, royalties, capital gains, income from dependent work, shareholdings of directors, income from artists and athletes, pensions, public function, teachers, students and other income.

The text also includes provisions on methods to eliminate double taxation, as well as the exchange of information, including banking, between both States, and includes in its Protocol a series of provisions aimed at preventing its abusive use for tax evasion purposes or opacity in international capital flows.