Finland and Spain have signed a new tax treaty which will broaden the Finnish Government’s right to levy pension income. The new accord comes into effect on 01 January 2019. Under the previous tax treaty, pension income paid to residents of Spain was only taxable in Finland in the case of public sector pensions. The revised treaty will allow Finland to levy all pensions paid from Finland to residents of Spain, including private pensions.
The Government plans to create a priority process within “SEF” (Immigration and Borders Service) to accelerate the granting of Golden Visas. Currently, many of these potential investments are going to Spain due to excessive delay in Portugal, where applications take as much as ten months for approval. So far this year, investments have already fallen by around 60%. In 2016, Spain attracted €1.1 billion as compared to €873 million in Portugal.
Lengthy delays in approving Golden Visas and their renewal are driving investors away from Portugal to other countries with similar programmes, in particular to Spain. Since the 2014 scandal that forced the resignation of high ranking officials, “SEF” (Borders and Immigration Service) has slowed to a snail’s pace the processing of Golden Visas.