The construction company justifies the transfer because most of its activities take place abroad and claims that the tax impact will be “minimal” for Spain’s treasury
The construction company Ferrovial intends to move its registered office (including its tax address) from Spain to the Netherlands, because the majority of its turnover is already realized abroad. Thus, the group will put it to the vote at the next shareholders’ meeting, which must approve the operation. The board of Ferrovial, chaired by Rafael del Pino, has made this proposal by indicating that 82% of its income and 96% of its market value is abroad. To implement this change of address, the board has proposed a merger between the parent company and Ferrovial International, a Dutch European joint stock company that owns 86% of the company’s assets.
Ferrovial’s formal goal is to be listed on the Dutch stock exchange and to make the jump to the American stock exchanges at a later date. The group wants to “benefit from internationalization, a huge advantage of being in both countries,” explain company sources, pointing to its ultimate goal of being listed in the world’s leading economic power. While this move “will not be so immediate,” the same sources indicate.
One of the changes that the change of address entails is that related to taxes. By moving its headquarters to the Netherlands, Ferrovial will stop paying the taxes it paid in Spain so far, although the group clarifies that it will not have a “relevant tax impact” as it will be between 1% and 1.5% % of the payment will represent. annual tax; the rest already paid taxes outside Spain. The most recent data available shows that Ferrovial has only 15 employees in the Netherlands and that a small part of its income comes from that area compared to the group as a whole.
The company insists that its Spanish companies (among others dedicated to construction or highways) “will continue” in the same situation as before, without foreseeing any impact on employment. Nor will it impose conditions – they insist – on investment plans in Spain.
For the company, moving its registered office to the Netherlands and listing on the market in that country is “an attraction” for international investors, as it is a country with maximum creditworthiness, “better financing conditions” and “better investment valuation”.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
