The way in which individuals and bodies corporate
pay tax in Spain varies depending on whether or not they are residents of
Spain.
Individuals shall be deemed to have their
principal residence in Spain if they meet any of the following conditions:
• They spend more than 183 days per calendar year
in Spain. Occasional absences shall be taken into account to calculate the
period of residence, except when said individuals prove they have their tax
residence in another country. In the case of countries or territories
classified as tax havens, the Spanish tax authorities may request proof of
residence in the tax haven for 183 days per calendar year.
• Calculation of the period of residence shall
not take into account any temporary stays in Spain that are the result of
obligations arising from cultural or humanitarian collaboration agreements
entered into with the Spanish public administration with no payment involved.
• Their main or central place of business is
directly or indirectly located in Spain. Unless there is evidence to the
contrary, an individual shall be deemed to be a resident of Spain if, in
accordance with the aforementioned criteria, his or her legally non-separated
spouse and dependent minor children have their principal residence in Spain.
Tax residence shall be proven by means of a
certificate issued by the competent tax authority in the country in question.
This certificate shall be valid for one year. An individual may have a
residence permit or administrative residence in a country and yet not be deemed
to have tax residence there
• The individual shall be deemed to be a resident
of the country in which he/she has a permanent home.
• If he/she has a permanent home in both
countries, he/she shall be deemed to be a resident of the country with which
he/she has the closest personal and economic ties (centre of vital interests).
• If the situation cannot be determined in this
way, he/she shall be deemed to be a resident of the country in which he/she
usually lives.
• If he/she habitually lives in both countries or
neither of them, he/she shall be deemed to be a resident of the country whose
nationality he/she holds.
2. BODIES
CORPORATE
1.
INDIVIDUALS
Individuals of Spanish nationality who prove they
have changed their country of residence to a tax heaven shall continue to be
liable for Personal Income Tax (IRPF) in Spain for the tax period in which the
change of residence occurs and the following four tax periods. An individual
shall be deemed to be a resident or non-resident for the entire calendar year,
given that a change of residence does not give rise to an interruption of the
tax period.
Proof of
tax residence
Residence
under Tax Conventions
In all agreements signed by Spain, reference is
made to each country's internal legislation when defining an individual's
country of residence. Given that different countries may have different
criteria in this respect, an individual may occasionally be deemed to be a
resident of two countries .In such cases; the agreements stipulate the
following general criteria to avoid this possibility of an individual being
deemed to be a resident of two countries:
• Finally, if he/she is a national of both
countries or neither of them, the competent authorities shall endeavour to
settle the question by mutual agreement.
A body corporate shall be deemed to be a resident
of Spain if it meets any of the following conditions:
• It was incorporated in accordance with Spanish
law.
• It has its registered office in Spain.
• It has its effective headquarters in Spain.
A body corporate shall be deemed to have its
effective headquarters in Spain if management and overall control of its
activities are based in Spain. If there is a change of residence, the tax period
shall end when this change occurs.
Proof of
tax residence
A body corporate shall provide proof of its tax
residence in a country by means of a certificate issued by the competent tax
authority in the country in question. This certificate shall be valid for one
year.
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