Expat Challenges

For many internationally minded entrepreneurs and high-net-worth families, the idea of “home” is no longer tied to a single country. Life unfolds across time zones: companies incorporated abroad, children studying in another continent, real-estate portfolios that span jurisdictions, and mobility decisions influenced by opportunity rather than geography.

The Valencian High Court (STSJ 690/2025) has reopened this question at the heart of international tax structuring, reminding us that sometimes Spanish law speaks as much by what it does not require as by what it does.

In its Binding Ruling V1003-25 (12 June 2025), Spain’s General Directorate of Taxes (DGT) has clarified the VAT treatment of utility tokens, confirming that VAT only applies when the token is redeemed for a specific good or service — not when issued or traded. This interpretation aligns Spanish practice with EU Directive 2016/1065 and provides much-needed clarity for Web3 and digital-asset projects operating under the EU VAT framework.

The Binding Ruling V0138-25 of the Spanish Directorate-General for Taxation (DGT) establishes, for the first time, an explicit framework for the tax treatment of non-fungible tokens (NFTs) in Spain. The case concerns a digital artist who creates and sells NFTs through marketplaces and metaverses, raising questions about their taxa El pronunciamiento es vinculante para la Administración, por lo que genera un precedente con efectos prácticos inmediatos para artistas, desarrolla

If you trade crypto on an exchange or hold assets with a custodian, part of your activity may be reported to the Spanish Tax Agency (AEAT) through two informational filings: Model 172 (balances) and Model 173 (transactions). The key issue is not how much you trade, but who provides the service and from where.

The message from the Spanish Tax Agency is clear: all crypto transactions are taxable, regardless of whether they are carried out in euros or between cryptocurrencies, and whether by individuals or companies.

Spain combines a dynamic business environment with a high quality of life, making it a prime destination for international entrepreneurs and professionals. However, success here requires more than just a good idea — it demands cultural awareness and local adaptability. Here are seven key insights to help business expats thrive in Spain:

Expats running international operations often face a hidden tax risk: Permanent Establishment (PE). Without realizing it, simply managing part of your business from Spain — even temporarily — can create legal ties that result in unexpected tax liabilities in other countries.

If you’re an expat trying to start a life or launch a business in Spain, you've likely hit a wall of bureaucracy. Endless forms in Spanish, unclear instructions, and slow-moving institutions can turn your excitement into frustration.