If you’re a stock trader and a tax resident in Spain, proper planning can make a significant difference in your annual tax bill.
From MDG Advisors, we share four essential tips to legally and efficiently optimize your tax burden:
1. Offsetting Gains and Losses: Spain allows you to offset capital losses against gains for up to four
subsequent tax years. Keeping a detailed record of your trades is essential to take full advantage
of this benefit.
2. Timing Your Sales: Deferring the sale of profitable assets to a future tax year may reduce your tax
liability if you anticipate lower income or carry-forward losses during that period.
3. Two-Months Rule: If you incur a capital loss and purchase identical securities within two months
of the sale, that loss will not be deductible until you sell the newly acquired securities.
4. Using International Accounts: Some international brokers offer more tax-efficient structures to
avoid early withholdings or improve the quality of tax reporting. Always comply with Spain’s
foreign asset reporting obligations (Modelo 720).
Should you want to receive more tips or information, please do not hesitate to contact MDG Advisors
Pablo Mallo Bárcena – MDG Advisors