New company abroad- taxation

ppp222

Hi all.
I have a question.
I am self employed in Ireland and I am thinking about creating a company in Spain and start business there as well.
Do you know how is it going to be with taxation, when i will have 2 companies in 2 different countries?
thanks

Heisenburg81

ppp222 wrote: »

Hi all.
I have a question.
I am self employed in Ireland and I am thinking about creating a company in Spain and start business there as well.
Do you know how is it going to be with taxation, when i will have 2 companies in 2 different countries?
thanks

You say you are self employed so you wont have two companies.
Even if you do have a company here, if it is a Spanish incorporated company you are setting up and not just a Spanish branch of an Irish company, the spanish companies are taxable solely in Spain. BUT this is dependent on the company being "centrally managed and controlled" in spain.
Revenue would deem the company irish resident and thus subject to irish tax if it was managed from ireland, even if incorporated in spain.
If the Spanish company is going to be a subsidiary of the Irish company any losses arising in the Spanish company can be group relieved against profits in the Irish Company if they cant be used against current year spanish profits - again this is only if you are forming a group and the companies are trading companies.

If you have a salary from the Spanish company you will be liable to Irish income tax due to being an Irish Resident for tax. You will recieve a credit for any Spanish income tax paid.
When/if you sell or liquidate the company you will suffer Irish CGT on any gain in the share value.