How Do I Know if I’m a Spanish Resident or Non-resident for Tax Purposes?
Are you a Spanish resident? It’s important to know so you can plan your taxes accordingly.
Am I a Spanish resident?
Individuals become officially resident in Spain for tax purposes if they live more than 183 days of the calendar year on Spanish territory or if the principal centre of activity or physical base of their economic interests is in Spain. A presumption of residence arises if an individual´s family lives in Spain.
Spain’s Double Taxation Agreements
According to Spain’s agreements to avoid double taxation, a person is defined as resident of a country according to the internal legislation of each country. Bearing in mind that different criteria may be established by each country, it is possible for an individual to be considered resident by both countries. To avoid this, the following criteria apply:
- A person will be resident in the country in which their permanent residence is located.
- If they happen to have permanent residences in both countries, they will be considered resident in the country in which they have the strongest personal and financial ties (centre of vital interests).
- Failing this, they will be resident in the country in which they mainly reside.
- If they split their time equally between both countries or do not live in either, they will be considered resident in the country of which they are a national.
- If they are a national of both countries, or of neither, the responsible authorities of each country will decide the individual’s country of residence by mutual agreement.
How do I register as a Spanish resident?
If, according to the criteria above, you are a Spanish resident you have to register for tax in Spain. For this purpose you have to inform the tax authorities in your home country that you have moved to Spain. You also have to register for tax in Spain with the Spanish tax authorities (Agencia Tributaria) using tax form 030. Our fees to complete form 030 for you are €50 plus VAT (21%) per person:
Spanish Tax Registration Service
€50 + VAT
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What are my tax obligations as a Spanish resident?
Residents are taxed on worldwide income therefore you have to declare all earnings, regardless of where they come from. This includes pensions from your home country (with the exception of some civil service pensions). A deduction for double taxation is applicable to all earnings that are taxed abroad so you will not be taxed twice on the same income. These rules apply even if your income is not paid into a Spanish bank. There are tax allowances and deductions for residents. These vary according to the individual’s personal situation, get in touch to arrange a consultation with us about your specific situation.
How does taxation differ for Spanish residents and non-residents?
Residents are taxed on worldwide income and non-residents are taxed on their gross Spanish source income and on capital gains arising from assets located in Spain. However, non-residents may also be taxed on deemed income in certain cases.
Contact Andalucía Lawyers if you have doubts about your tax obligations and would like to set up a consultation with us, either in person or via phone/email.
How can I prove I am a tax resident outside of Spain?
A person may have a residence permit or administrative residence in a country without being considered a resident for tax purposes. However, fiscal residency is established by means of a certificate issued by the appropriate tax authority of the country in question. The certificate remains valid for one year.
Our Services
We provide both a non-resident tax advice service and a resident tax advice service, each for a set annual fee.
Residents
Non-Residents