My very limited understanding is that if one is a fiscal resident, one needs to file taxes in Spain. There are many deductions, and the amount due – if any – is the calculated Spanish taxes less the amount of taxes paid in the other country.
My question is: Do ‘legal trusts’ exist in Spain? Are legal trusts from other countries recognized in Spain?
If so, is seems that this situation could have been avoided as the trust had the capital gain, and not the individual. I know this doesn’t help the situation, but it may help others.