ETVE in Spain: what are the advantages for Digital Nomads?
Spain offers a very attractive tax regime for managing international holdings through the Entidades de Tenencia de Valores Extranjeros (ETVE), which are corporate vehicles specially designed for companies wishing to manage investments in foreign subsidiaries. This model is advantageous for both companies and investors, especially digital nomads looking for tax-efficient opportunities in their international businesses.
What are ETVEs?
ETVEs are holding companies that have stakes in foreign companies and allow dividends to be distributed and stakes to be sold tax-free in Spain, provided certain conditions are met.
Legal requirements for ETVE:
According to the Corporate Tax Law (Ley del Impuesto sobre Sociedades), ETVEs are governed by a series of rules that guarantee their favourable tax application:
Tax residence in Spain: The company must be tax resident in Spanish territory.
Exclusive activity: The ETVE's main activity must be the management of shareholdings in companies not resident in Spain.
Significant shareholding: It must hold a minimum shareholding of 5 per cent in subsidiary companies or an acquisition value of more than 20 million euros.
Tax benefits: Dividends received and capital gains from the sale of shareholdings are exempt from taxation in Spain.
Advantages for Digital Nomads
For digital nomads who have international businesses, ETVE can be a strategic tool for reducing the tax burden on their investments, as well as facilitating the management of holdings outside their home countries. At the same time, the use of ETVE offers the possibility of organising the business structure in a tax-efficient environment.
The Search for Stability and Efficient Fiscal Structures
For many digital nomads, choosing an efficient tax structure goes beyond financial optimisation. ETVE offers not only tax benefits, but also the security of operating in an environment with clear and stable rules. This can be especially important for those who, by moving around frequently, are looking for greater stability in their professional and personal relationships, finding in Spain a place that offers this legal and fiscal peace of mind.
Final considerations
Using an ETVE can be highly advantageous for digital nomads who act as investors or entrepreneurs in different jurisdictions. However, it is crucial to analyse in detail the conditions imposed by the Spanish tax authorities and ensure strict compliance with legal regulations. With proper legal guidance, ETVE can become a powerful tool for ensuring tax efficiency, allowing digital nomads to continue their global journeys with a solid and welcoming business structure.
If you are interested in hiring professional legal services related to legal advice for opening an ETVE, we are a law firm specialising in the subject. To do so, please contact us by e-mail: contato@trpuppioadvocacia.com.br, or via WhatsApp.
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