What is a tax representative?
A tax representative is a natural or legal person that represents nonresident taxpayers (companies or natural persons) before Spanish tax authorities. The tax representative is your contact with the Spanish authorities.
Am I obliged to have a tax representative?
Not always. Nonresident taxpayers are obliged to appoint a tax representative in Spain, who may be an individual or legal entity resident in Spain, in the following cases:
- Those non-residents operating in Spain through a permanent establishment.
- Non-residents that provide services, technical assistance, installation or assembly work
derived from engineering contracts and in general activities or financial
operations in Spain without a permanent establishment. - Those which are specifically required to do so by the tax authorities because of the nature or the amount of income obtained.
- Those which are persons and entities resident in countries or territories with which there is no effective exchange of information (e.g. tax heaven).
However, taxpayers may voluntarily appoint a representative who can serve as a contact with the tax authority.
Functions of the tax representative
A tax representative may have the following functions:
- Serve as a communication channel with the tax authority.
- Obtaining a NIF for non-resident companies.
- Filling tax declarations.
Tax representative appointment (when obliged) must be done before the end of the period for income declaration, and must be notified to the authorities within two months.
Failure to appoint a representative or to notify the authorities can lead to a sanction of €2,000.
