Our work in practice

Client case studies

Spanish tax questions often involve more than a single return. These examples show how AlbeaTax has helped clients plan a move, coordinate with an advisor abroad and respond to Spanish Tax Agency notices.

Names and identifying details have been omitted. Each case reflects its own facts and circumstances; outcomes should not be taken as a prediction for another client.

Spanish Tax Returns (Renta / IRPF)

Resolving double taxation through coordination with a US advisor

The situation

A US citizen contacted AlbeaTax after receiving a Spanish Tax Agency notice rejecting a foreign tax credit claimed on their Spanish return. The US tax concerned had arisen because of citizenship. The client had previously been advised that the credit could be claimed in Spain.

How we helped

We reviewed the notice and explained the treaty provisions relevant to the client’s circumstances. We then contacted the client’s US tax advisor to arrange an amendment of the US return and a claim for the appropriate foreign tax credit there.

The outcome

The client obtained the credit in the United States, avoiding double taxation on the income concerned. The Spanish adjustment and the penalty imposed for the incorrect Spanish claim were not reversed by this work.

What this illustrates

When income is taxed in more than one country, the correct place to claim relief matters. The Spanish and US returns need to be considered together.

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Special Tax Regime (Beckham Law)

Reviewing the timing of a move before filing

The situation

A client planning to return to Spain after several years abroad asked us for a quote to file for the Special Tax Regime (Beckham Law). Flights had been booked for September, arrangements had been made with the employer and an offer letter from the Spanish company was already in place.

How we helped

Alongside the fee proposal, we arranged an introductory call to review eligibility and the supporting documents. That discussion identified that the planned move would not meet the requirements in this client’s circumstances. We recommended postponing the move until the beginning of the following year.

The outcome

The client coordinated the revised arrangements and arrived in January. The Special Tax Regime was subsequently granted.

What this illustrates

Review eligibility before finalizing your move. This was an individual assessment; moving in January does not, by itself, establish eligibility for the regime.

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Spanish Tax Agency Communications (AEAT)

Separating a tax adjustment from a penalty challenge

The situation

A client had sold a property in Portugal and claimed a foreign tax credit on their Spanish income tax return. After requesting evidence of the Portuguese tax paid, the Spanish Tax Agency concluded that the credit had been calculated incorrectly. The resulting refund was substantially lower than the amount claimed.

How we helped

We examined the Spanish notice and the Portuguese return. Our review confirmed that the tax authority’s calculation was correct and that there were no grounds to contest that adjustment. When a separate penalty notice arrived, we prepared a written submission seeking withdrawal of the penalty.

What the review established

The review clarified which part of the matter could be challenged. Our response addressed the penalty separately from the underlying tax calculation.

What this illustrates

A tax adjustment and a penalty require separate analysis. Advice should explain both what can reasonably be challenged and what the documents support.

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Foreign Asset Reporting (Modelo 720)

Correcting a property value reported on Modelo 720

The situation

A client contacted us after a property outside Spain had been reported on Modelo 720 at an incorrect, substantially higher value. The discrepancy affected the calculation of imputed property income on the Spanish income tax return. The Spanish Tax Agency issued an adjustment increasing the taxable base.

How we helped

We helped correct the Modelo 720 reporting and prepared the response to the tax assessment issued by the Spanish Tax Agency.

The outcome

Following the correction and the response to the assessment, the issue was resolved.

What this illustrates

Foreign-asset reporting and the income tax return need to be consistent. The correct valuation should be checked against the rules applicable to each obligation.

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