When is a person considered resident in Spain? Spanish accountant is giving you the answer

This post is issued by English Spoken Spanish accountant, Sara Duarte, of Spanish accountancy and law firm Arcos & Lamers Asociados.

Many people live in more than one country during a tax year (e.g. Spain plus another country). Furthermore, they could own several properties in both countries.

In order to determine your tax liabilities you need to clearly state the country of residence for tax purposes.

When you are considered to be a Spanish Fiscal Resident you will be liable to be taxed for all your Wealth and Income, obtained not only in Spain but World wide, according to Spanish Tax rules and rates – this will include all pension funds unless stated otherwise.

In order to determine your Residency the Spanish Inland Revenue states that:

Any person will be considered a Spanish resident as long as one or more of the following circumstances are met.

  1. That the person remains more than 183 days during the calendar year on Spanish Territory.  In order to determine the residency period under Spanish Territory sporadic absences will be included as well, unless the person can certify his Fiscal Residency abroad.  In the event that the countries or territory was considered to be an Off-Shore country or territory then the Spanish Inland Revenue can request proof of permanency in that country for more than 183 days.
  2. That Spain is the main centre or base of their activities or economical interest directly or indirectly.
  3. That the spouse, not legally separated, together with any under age children dependant on this person are usually resident in Spain.

The condition of Spanish tax payers in concept to the Income Tax Return will not be lost by any person holding a Spanish Nationality that changes his Fiscal residency to a country considered an Off-Shore country or territory.  This rule will be applicable to the tax year where the change took place plus the following four years.

On the other hand, a person will be considered non resident in Spain when they do not meet any of the requirements mentioned above.

If you have any queries regarding any of the above, the Spanish lawyers, accountants and tax advisers in Marbella of  Arcos & Lamers Asociados will have the pleasure to advise you on the Spanish taxes you will be due as a Resident or Non Resident in Spain.

Arcos & Lamers Asociados is an multilingual Spanish Law firm. English spoken Registered Accountants in Spain. Spanish Tax advisers in Marbella. Lawyers in Marbella, Solicitors in Marbella. Your Spanish tax expert!

Marbella,  September 2012

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