[miguelaeh]

I am from Spain, the system is just a joke. It is not taxing the wealthy people, just those wealthy enough to live well but not worth creating a holding company, which is in most cases working people with well-paid jobs and not the so hated businessman.

[bwb]

The worst is for angel investors in Spain...

You invest in 10 companies; each has another round and you pay wealth taxes on the valuation of that investment every single year, even as 9 of them crash you get no deduction, you just pay taxes on the valuation. It is such a broken system which is a pity as the Spanish people are amazing!

[miguelaeh]

Wow. I didn't know that. It's crazy.

I am aware of the legal and tax burdens that many entrepreneurs suffer because of the exit tax. That's the reason why many of them (me included) decide to open their companies directly in the U.S., which makes Spain to continue becoming more poor.

I really don't understand how we passed from being the biggest world empire to where we are right now in barely 500 years.

[bwb]

Ya, I run into a lot of EU citizens who open companies in the USA for similar reasons...

Check this out as group trying to change this -> https://eu-acc.com/

I love Spain; I want to live there and start a business there (and hire there). But I can't because my tax rate in some years will be 110% (or more) of my personal income. I was going to owe more than I made every year which blows my mind...

Part of that is because I am stuck between the Spanish and American tax systems, and the American tax system seems to not recognize wealth taxes, so I can't get a tax credit for what I pay in Spain (Spain caps total taxes at 60% when combining the wealth tax with income to try to stop the problem I sketch out).

I still have hope that one day I can move to Spain and this will get sorted.