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Large estates activate their "plan b" against tax increases

| News | Tax

Miguel Ángel Galán analyses the "plan b" against tax increases in an article published by ABC

Amancio Ortega, Rafael del Pino, Juan Roig, Alicia Koplowitz, Florentino Pérez... all of them are Spanish billionaires. It's well known. But great fortunes go far beyond media surnames. There are hundreds of thousands that go unnoticed by the general public; specifically, our country has 979,000 rich people, according to Credit Suisse, compared to 172,000 in 2000.

Miguel Ángel Galán, partner of Andersen Tax & Legal, goes further and goes from the saying to the fact, with the focus on the capital of Spain for its exemption from wealth tax and almost total bonus for direct relatives in Inheritance and Gifts. Its restless clients have taken certain decisions in 2019 and continue to do so this year: "Some individuals have already made the decision to move to Madrid. Furthermore, in the second half of the 2019 financial year, consultations have been directed at moving outside Spain, even far from the European Union". He is referring to jurisdictions such as Portugal, Italy, Luxembourg... but also to others such as the United States, which is on the rise. The main reason why they are already thinking of leaving our country is that, for them, it would not be enough to change their residence to Madrid, as there are plans to homogenize the taxes that have been transferred. If they impose a minimum rate, their option is abroad.

In spite of everything, there are certain movements that they can already adopt. Since the end of 2019 there has been a flood of donations from direct relatives, especially of cash, and also of real estate assets and business shares. This is how Galán, from Andersen Tax & Legal, shows it. All of this in an attempt to benefit from the current legal regime and in the hope that they will be able to get their hands on their assets through inheritance.

You can see the full article in ABC.

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