Does moving to spain adjust your cost basis?

For residents of Spain.
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Topic Author
assyadh
Posts: 582
Joined: Tue Sep 18, 2018 12:44 pm

Does moving to spain adjust your cost basis?

Post by assyadh »

Hi everyone.

I was wondering if moving to spain would adjust your cost basis on your portfolio of shares, similar to what Canada or Australia does? I tried finding some answers online and it looks like it's not the case?

Also wondering if qualyfing for the Beckham law would allow to sell and rebuy your entire portfolio to avoid capital gains tax? I read that no modelo 720 was due under the Beckham law?

EDIT: it looks like it would be the case: https://iliaconsulting.com/en/form-720- ... ckham-law/

Can anyone confirm?

Thanks
123
Posts: 10415
Joined: Fri Oct 12, 2012 3:55 pm

Re: Does moving to spain adjust your cost basis?

Post by 123 »

As a US citizen (based on your earlier posts) any transactions (purchases or sales) would impact your US taxes. If you you reside abroad the tax rules of that country could be different and could impact any tax return you file for that country in a different manner. Any particular income or transaction could have very different tax consequences on your required US return versus the required foreign return. If there is a tax treaty between two countries generally there is some mechanism that gives some degree of credit for taxes paid in one country in calculating the taxes due to another country.
The closest helping hand is at the end of your own arm.
Topic Author
assyadh
Posts: 582
Joined: Tue Sep 18, 2018 12:44 pm

Re: Does moving to spain adjust your cost basis?

Post by assyadh »

123 wrote: Wed Aug 04, 2021 8:39 pm As a US citizen (based on your earlier posts) any transactions (purchases or sales) would impact your US taxes. If you you reside abroad the tax rules of that country could be different and could impact any tax return you file for that country in a different manner. Any particular income or transaction could have very different tax consequences on your required US return versus the required foreign return. If there is a tax treaty between two countries generally there is some mechanism that gives some degree of credit for taxes paid in one country in calculating the taxes due to another country.
Thanks for your post but I'm just a GC holder and would surrender the green card before selling my portfolio. No exit tax due, not covered expatriate. Clean relinquishing of the GC
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