The agreement signed with the country establishes that if a citizen wants to pay taxes there, they must have Emirati nationality
The current tax regulations would prevent the emeritus king from spending periods in Spain and paying taxes in Abu Dhabi, where the previous monarch has decided to establish his residence despite assuring that he will travel regularly to our country.
According to José María Mollinedo, general secretary of the Treasury Technicians (Gestha), to benefit from the advantageous taxation of that country, Juan Carlos I must not only have a residence permit but must also have Emirati nationality or another status preferential, something that does not currently exist.
This is stated in article 4 of the agreement to avoid double taxation that Spain signed in 2006 with the United Arab Emirates. A document that would prevail over the general rules that establish the obligations with the Tax Agency and that depend on several factors, such as the place where the economic activities are located and, above all, the length of stay.
In the Spanish case, a limit of 183 days is set to determine the tax residence. But the Treasury technicians insist that in this case the double taxation agreement prevails.
Limits
Under this scenario, the king emeritus would have to pay taxes in Spain both for his assets and for his capital income, including accounts abroad, without being able to benefit from the ‘zero taxation’ that governs Abu Dhabi for personal income tax and for the Wealth tax.
Experts recall that, in any case, it does exceed “by status” the visas that are currently required for citizens of the European Union who want to live in Abu Dhabi. Specifically, the country offers a maximum of ten years of residence through the so-called ‘Gold Visa’.
A document that is granted, among other relevant groups, to people who deposit more than 10 million dirhams (about 2.5 million euros) in an investment fund in the country. You can also access a five-year permit if you buy a property worth at least 1.5 million.