King Juan Carlos communicated a year ago, in a note made public by Zarzuela, his decision to establish his permanent residence in Abu Dhabi, where, in fact, he had lived since August 3, 2020. Now he has taken another step towards Initiate the administrative procedures before the Public Treasury to leave a tax record of your status as a non-resident in Spain and, therefore, be exempt from rendering accounts to the Spanish Treasury.
According to El Mundo, in its digital edition, the King's father has informed the Treasury "that the main nucleus or the base of his activities or economic interests no longer resides in Spain, as established by Spanish regulations to grant tax residence to a citizen, and effectively becomes a taxpayer in the United Arab Emirates."
On March 7, 2022, after living in Abu Dhabi for a year and a half, King Juan Carlos sent a letter to his son, Felipe VI, in which he informed him of his decision to establish his permanent residence in the emirate, he did so later after the State Attorney General's Office archived the investigations for alleged fiscal irregularities and after paying two regularizations that forced him to pay more than five million euros to the Public Treasury.
Until then, and despite fulfilling the requirements of living abroad for more than half the year, King Juan Carlos maintained his official residence, and therefore fiscal residence, in Spain,
At the time that his file was resolved, it was when he communicated his decision to become a resident in Abu Dhabi and, as a consequence, to stop being a taxpayer in Spain, the data that has now been known corresponds to the administrative procedures of the official communication of their status as a resident abroad, in view of the 2022 income tax return campaign.
King Juan Carlos, despite living abroad, continued to file the income tax returns for the 2020 and 2021 financial years in Spain. The King's father has not received money from the King's House budget since March 2020. 2020, when Felipe VI withdrew his allowance at the time that he communicated his preventive resignation to the possible inheritance that he could receive from his father. In his income statements in Spain, King Juan Carlos, in addition to the salary he received until March 2020, included the performance of shares and investments.
One of the reasons why King Juan Carlos chose to go into self-exile in Abu Dhabi is precisely to enjoy the fiscal conditions of the emirate where there is no Personal Income Tax (IRPF), nor are taxes paid for capital returns.
