The king emeritus transfers his tax domicile to the United Arab Emirates, where he has resided since August 2020. This means that this year he will not file the income statement in our country for the 2022 financial year, but will pay taxes from his residence in Abu Dhabi. He publishes it like this The worldwhich also points out that with this decision Don Juan Carlos he gets rid of the Treasury investigating his economic activities.
The United Arab Emirates offers the expatriate a very favorable tax policy. To begin with, there is no personal income tax. (personal income tax). This means that active people receive their salary tax free. Gross pay is net pay. There is also no corporate tax, except in some cases such as oil companies and foreign banks.
In the case of the emeritus, his departure to Abu Dhabi raised doubts as to his permanence. Spanish law establishes two requirements to establish tax residence in our country: stay more than 183 days a year here. This is not the case of the emeritus, who does not set foot on Spanish soil (except for his express visit to Sanxenxo in May 2022). And the second rule is that the basis of their economic activities or their economic interests are in Spain.
The father of Felipe VI, who expressed his desire to visit Spain “frequently” via an official statement in March 2022, has not fulfilled that wish. The words that she chose were the following: “I prefer, for reasons that belong to my private sphere and that only affect me, to continue residing permanently and stably in Abu Dhabi“. With this announcement he already marked the roadmap of what would be his fiscal future.
With this measure, as the newspaper points out, the emeritus is left out of the Spanish Tax Agency, with which he has established various regularizations since his self-expatriation. It must be remembered that in March 2020, the head of state withdrew his official allocation from the Royal Household budget: 194,000 euros a year. Cutting off the tap meant for don Juan Carlos one more step towards getting out of it. Already in the middle of the pandemic and installed in his self-exile, he made two payments to the Treasury to regularize his situation, as reported The country: the first, of more than 670,000 euros; and the second, 4.4 million. In March 2022, the Supreme Court Prosecutor’s Office closed the investigation against Don Felipe’s father about his finances.