THE TAXPAYER AND RESIDENCE

While residents in Spain pay taxes on their income worldwide, nonresidents
are taxed only on their income from sources within Spain. That is why residency is so important.
A. Residence of the individual
Individuals are deemed to be residents in Spain when they meet any of the following criteria:
• They remain in Spain for more than 183 days during a calendar year. In order to determine the period of stay, sporadic absences are included in the count, except those where the tax residence in another country is proved. In the case of countries
or territories labeled as tax havens,the Tax Administration can demand proof of stay in that tax haven over a period of 183 days in a calendar year.
In order to determine the period of stay, temporary stays in Spain that are the consequence of contractual obligations in agreements of cultural or humanitarian collaborations performed free of charge with the Spanish Public Administrations are not included.
• Their main base or centre of activities or economic interests is, directly or indirectly, in Spain.
Also, it is presumed, except if proved otherwise, that a taxpayer has his usual place of residence in Spain when, using the above criteria, his spouse -not legally separated- and underage dependent children are permanent residents in Spain.
In addition, individuals of Spanish nationality who prove their new residency in a tax haven (Appendix V), will continue to be deemed residents in Spain for income tax purposes (Impuesto sobre la Renta de las Personas Físicas - IRPF), both in the taxable period during which they change their residency as well as in the four tax
periods thereafter. However, this rule will not apply to individuals resident in Andorra who prove their status as wage-earning workers, provided that they comply with certain requirements.
An individual will be considered either as resident or nonresident for the whole calendar year, because a change of residency does not interrupt the taxable period.