Legal tip 278. Tax residency in Spain
Monday, May 24, 2010 @ 6:22 PM
Being a tax resident in Spain involves being subject to income tax in Spain. On the other side, being non-resident for taxes purposes implies to be subject to non-residents income tax.
How is it determined?
When considering the tax residence of a person, we always take into account not only the Spanish law on personal income tax but also provisions of applicable international agreements.
Income Tax Act provides two criteria for determining fiscal residency in Spain:
- People who spend more than 183 days during the calendar year in Spanish territory
- People who has the core or the base of their activities or economic interests in Spain.
Anti-abuse clause
Also known as the "fiscal quarantine." This clause is intended to avoid relocation for tax purposes and provides that those persons of Spanish nationality who can prove their new residence for tax purposes in a country or territory considered as a tax haven will not lose the status of taxpayers by income tax. This rule will apply for the tax period in which the person relocates and during the next four years.
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Caños de Meca, Cadiz, Costa de la Luz by JuanJe at Flickr.com