Spain proposes changes to the list of non-cooperative jurisdictions, removing several jurisdictions and adding Russia’s international holding companies tax regime as a harmful tax regime.
Spain’s Ministry of Finance has published a Draft Ministerial Order that proposes amendments to Order HFP/115/2023 of 9 February 2023, which currently defines the list of countries, territories, and harmful tax regimes considered non-cooperative jurisdictions.
Key changes to the list
The proposal includes the removal of six jurisdictions or specific regimes:
- Barbados
- Dominica
- Gibraltar
- Samoa (specifically regarding its offshore business regime)
- Seychelles
- Trinidad and Tobago
It also proposes the addition of one jurisdiction: Russia, specifically regarding its international holding companies tax regime, which would be classified as a harmful tax regime.
Principles of good regulation
The text highlights that it complies with principles of necessity, efficacy, proportionality, and legal certainty, ensuring coherence with both Spanish and European Union law. Transparency was maintained by making the draft and its Impact Assessment available for public information.
The order introducing the Russian international holding company regime will come into effect six months after its publication in the Official Gazette. From its effective date, it will apply to taxes without a tax period for liabilities accruing from that date onwards, and to other taxes where the tax period begins on or after the same date.
