Treasury technicians warn that the King Emeritus would have to obtain Emirati nationality to be a tax resident

They specify that for physical residence you must invest in the Emirates, but you say you do not know if this country has exempted you from complying with the rule

MADRID, 27 Ene. (EUROPA PRESS) -

The spokesman for the Association of Treasury Technicians (Gestha), José María Mollinedo, explained that in order for the King Emeritus to transfer his tax residence from Spain to the United Arab Emirates, where he currently resides, he would have to be an Emirati national. Not so to obtain the physical residence permit, which is granted for investing in the Emirates. However, they point out that if it is true that a house is going to be built, "the fundamental question would be where the money comes from." Although he does not know if this country has exempted Don Juan Carlos from complying with the rule.

Mollinedo recalled, in statements to Europa Press, that article 4 of the Agreement signed between Spain and the Emirates states that in order for a natural person to be a tax resident in the Emirates, they must reside in this country and be an Emirati national.

Therefore, they point out that if the King Emeritus is not a national of the Emirates "he cannot be a tax resident" in that country. In this sense, the Gestha Spokesperson recalls that article 9 of the Income Law establishes the conditions for tax residence to be located in Spain.

Among them is the fact that the activity or the main nucleus of economic interests resides in our country directly or indirectly. If, in the case of the King Emeritus, his main core of economic interests did not reside in Spain, "he could be a tax resident in another country, but not in the Emirates" because the Agreement with that country does not allow it unless he is an Emirati national.

But in that case, the lawyers of King Juan Carlos would have to clarify it to the Spanish Public Treasury, adds Mollinedo, who says he does not know if there is dual nationality with that country, although he believes that to obtain the Emirati it is possible that he would have to renounce the Spanish one. .

As for obtaining physical or habitual residence in the Emirates, it is necessary to make an investment in this country, in a company, a bank or acquire a residence. Depending on the amount of this investment, residence is obtained for a maximum of 3, 5 or 10 years.

In other words, the Emirates allows residence for three years if a property is purchased and for 5 years and 10 years if the investment made is 2 million dirham (500,000 euros). "That is what gives the right to a residence visa," says Mollinedo.

For this reason, the spokesperson for the Treasury Technicians believes it is necessary to know what are the investments that the King Emeritus is making in the United Arab Emirates, given that in order to regularize his situation with the Treasury in Spain, he was forced to borrow almost 5 million euros from his friends. because in theory he did not have that balance. However, Mollinedo says he is unaware if the Emirates has exempted King Juan Carlos from these requirements to obtain a residence permit.

But he does specify that if the information that the Emeritus is building or is going to build a residence in the UAE is true, "the fundamental question is where the money comes from, if his friends lend it to him to regularize with the Treasury in Spain."

In that case, he points out, his lawyers should go to the Tax Agency and provide the financial information related to the construction or purchase of the home. In the event that they did not do so or that the information was incomplete, he points out, the clause of the Agreement with the Emirates would have to be activated, which prevents tax crimes, so that the Emirati authorities could address the Emeritus, the companies that build the real estate or to the banks that finance it for them to inform.

Mollinedo also recalls that the United Arab Emirates signed the OECD multilateral agreement for the exchange of bank account movements. So, he adds, if the Emeritus had accounts in that country, the information should reach the Spanish Treasury. The Emirates signed this Agreement in 2019 and "it is supposed to be providing this information since 2020 on Spanish residents in the Emirate."