Criteria for individuals to be considered tax residents

CRITERIA FOR INDIVIDUALS TO BE CONSIDERED A TAX RESIDENTS:

Individuals are considered tax residents in Spain if they meet at least one of the following circumstances:  

• • Staying more than 183 days in Spain during a calendar year. 
  • To have in Spain economic interests or the centre of activities or the main base.  

• • If your spouse and/or children permanently reside in Spain, the Spanish law presumes that you are a tax resident, unless proven otherwise.  

In Spain you are resident or non-resident, the concept of part-year resident does not exist.  

If you do not meet the foregoing criteria you are a non-resident, but the sources of income you obtain in Spain will be taxed under the non-resident income tax (NRIT). This tax distinguishes between income obtained through or without permanent establishment. For more information about this tax, click on this link. 

Agreements and double residence: 

In the agreements to avoid double taxation signed by Spain, defending a person as resident depends on the internal legislation of each state. Bearing in mind that each State can establish different criteria, two States may consider a person as a resident. 

In these cases, the agreements generally establish the following criteria to avoid a person being considered resident in both States: 

1. 1. A person will be resident in the State in which they have their permanent home available to them. 
   2. If they have a permanent home available to them in both States, they will be considered resident in the State with which they have the closest personal and economic relations (centre of vital interests). 
   3. If the above criteria could not be determined, they will be considered resident in the State where they usually live. 
   4. If a person usually lives in both States or does not live in either of them, they will be considered resident of the State of which they are a national. 
   5. If they are a national of both States, or of neither, the responsible authorities will resolve the case by mutual agreement. 

So, if both countries in which you have a residence have a Double Tax Treaties you can benefit from exemptions, thus you do not suffer the simultaneous application of two taxes (one for each country of residence) on the same gain.  

Accreditation of tax residency: 

Tax residency is proven by means of a certificate issued by the responsible Tax Authority of the country concerned. The period of validity of these certificates is one year. 

A person can have a residence permit or administrative residence in a State and not be considered a tax resident therein.