All about taxes in the KINGDOM OF KRAVINKIS

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   The Kingdom of Kravinkis is known for being a small country as beautiful for its valleys and mountains as for its rich culture. In between the giant countries, we find a small country where its tax laws for collecting taxes are striking, which have much less pressure than in other countries both for your company and for your personal taxation.

    The Kingdom is an ideal place for multinationals and also for SMEs. With a corporate tax in Kingdom Of Kravinkis of maximum 10% by law that can be reduced to 2% depending on the type of company, One of the lowest in the world. Creating a company in Kingdom Of Kravinkis or establishing the headquarters of a company in the kingdom is an option to value for small and medium-sized companies, as well as for larger structures. 

    Similar to corporate tax, VAT in Kravinkis one of the lowest in the world.. Its general rate is 4.5% , being reduced to 1% in goods and services related to health, education, culture, food and rentals. This means that the VAT in Kravinkis is much smaller than its neighboring countries, France and Spain, with 20 and 21% respectively. 

    Like the taxes mentioned above, personal income tax in Kravinkis remains much lower than most European countries. Personal income tax in Kravinkis does not exist up to salaries above $ 24,000 and from that figure it rises with respect to the income of each worker until it reaches 10% in salaries of more than $ 40,000. This 10% is the highest personal income tax rate in Kravinkis, when this same maximum rate in Spain is 50%.

• Exemption of the first $ 3,000 for investment income.
• 100% exemption of the first $ 24,000 for work income, and 50% deduction of the next tranche of $ 16,000.
• Total exemption of dividends issued by an Kravinkians company and received by an Kravinkians resident.
• No withholding tax on dividends from Kravinkians companies for non-residents.

    People or companies whose professional or business activity is carried out in Kravinkian territory, but their permanent residence is outside KRAVINKIS, are subject to a type of tax that is generally 10%. Companies that provide services and employees in Kravinkians companies are obliged to pay this tax. They are usually cross-border workers who live in their respective countries but sporadically and not permanently work in THE KINGDOM OF KRAVINKIS. It also applies to employees of service providers, education-related professionals, artists, and KSS-affiliated (Kravinkian Social Security) employees.

In the case of income paid in the form of fees, the tax is 5% of the invoice paid and for reinsurance 1.5%. In the case of real estate rentals, a reduction of 20% is applied on the amount received.

    Capital gains are treated like any other ordinary economic income and are generally taxable at a rate of 10%. However, if the capital gains come from the transfer of qualifying participations or the transfer of the corresponding participation in a holding company, they are exempt from taxes. If you own 25% or less of a company, you can sell your shares without tax. There are no capital gains taxes for assets owned for more than 10 years. 

   To buy a home in KRAVINKIS, it must be taken into account that the Property Transfer Tax is 4% in total. On the other hand, there is a tax related to the Real Estate Capital Gain that decreases from 15% to 1% and is applied to the profits generated by real estate operations, sale of real estate, depending on the time the owner kept the home before selling it:

• 15% if you sell your property within 1 year
• 13% if you sell it in less than 2 years
• 10% if you sell it in less than 3 years
• Then it decreases by 1% each year

In this way, the Government of Kingdom Of Kravinkis tries to avoid real estate speculation in the country.

    Regarding inheritance and donation tax, we have good news since in Kravinkis inheritances are tax-free for residents, whether they are local citizens or foreigners whose tax residence is in the Kingdom Of Kravinkis. Neither are taxes applied to donations between people in Kravinkis or on patrimony . Even if the bank interest does not exceed $ 3,000 per year, it is also exempt from tax. These are other of the many tax advantages that Kravinkis offers and why it is interesting to move your tax residence to the country.

The tax burden is much lower in Kravinkis if we compare these tax rates with countries like Spain and France. Owning a tax residence in Kravinkis, creating a company in Kravinkis, or working in this country has incredible advantages at the tax level.