Given the following hypothetical situation:
- I have an S-Corp in the US which generates 300K USD annually
- I am a US citizen
- I am an EU citizen and reside in Spain
- I invoice the US S-Corp for 50K EUR per year (to live off of in Spain as a freelancer)
- The remaining ~240K USD stays in the S-Corp's US bank account
How does the Spanish Tax Agency view this situation?
- Would the S-Corp's total annual income need to be declared as personal income in Spain?
- Would the ~240K USD that remained in the S-Corp be taxed at a US corporate tax rate?
- Is only the invoiced income (the 50K EUR) considered personal income from the perspective of the Spanish Tax Agency? Or is the S-Corp's total income included?
I tried understanding the tax treaties between both nations but it was unclear to me how this situation should be classified.