In the year we have just left, and following the guidelines of the 2023 Annual Tax and Customs Control Plan, the tax authorities intensified inspections focused on high net worth individuals who changed their residence, both internationally and between autonomous communities. In this regard, for example, changes of residence from Spain to jurisdictions with less burdensome tax environments, such as Portugal or Andorra, have been particularly scrutinized.

Particularly noteworthy in this context is the request from the Association of Tax Inspectors demanding profound legislative changes when defining the concept of tax resident to prevent YouTubers, elite athletes, or individuals with significant wealth from freely leaving Spain for jurisdictions with lower tax pressure.

This scrutiny is expected to persist in 2024, also showing a particular focus on corporate reorganizations involving both individuals and legal entities.

Also highlighted in 2023 was the heightened surveillance of changes of residence between autonomous communities, considering fiscal disparities. The 2023 Annual Tax Control Plan identified the simulation of tax residence as a critical point. The tax inspection has increased the number and aggressiveness of inspections, a pattern expected to continue in 2024.

Furthermore, there has been a growing focus on reviews by the Tax Inspection regarding the use of companies by individuals when used as instruments to reduce personal tax burdens. The inspection seeks to ensure that these companies have real operability and are not mere devices to evade taxes. Legal disputes surrounding these practices are becoming more common.

There has also been an increase in contentious situations in operations covered by the special tax regime for business restructurings, as tax authorities question the fiscal neutrality of certain corporate changes. Corporate operations aimed at simplifying structures are under increased scrutiny, and the inspection may claim the taxation of capital gains if fiscal neutrality is rejected.

In summary, the tax authorities have intensified their focus on changes of residence, the use of instrumental companies by individuals, and corporate restructuring operations. In the coming weeks, it is expected that the tax authorities will publish the Annual Tax and Customs Control Plan for 2024, and everything indicates that the efforts of the Tax Inspection will continue to focus on these three particularly relevant aspects.

Feel free to contact our professional experts from addwill‘s tax department for advice via phone at +34 934 875 200 or email at, or by clicking here.