Tax residence is the condition in the eyes of the Tax Agency that a foreigner acquires by living a prolonged time during the year in Spain and / or with economic interests in the country, a fact that will create the obligation to pay a series of taxes and pay taxes to certain percentages.
When is a person considered a tax resident in Spain?
Fulfilling any of the three following conditions:
- That they stay more than 183 days a year in Spain. If at the end of the year (counting the calendar year, from January to December), you add up all the days that you have been in Spain and there are more than 183, you are a resident for tax purposes.
- If your spouse or child habitually resides in Spain. It is the typical situation in which the father or mother lives in Spain taking care of the child (a child who goes to school in Spanish territory), while the other member of the couple spends the year traveling for work. This situation will make the Tax Agency consider us a tax resident, and although evidence against this is admitted (which can be taken into consideration and accepted) it will be very difficult to prove that this situation does not really exist.
- That it has the core of its economic interests directly or indirectly in Spain. It may be that you are less than 183 days a year in Spain but you are still considered a resident for tax purposes. Take, for example, the situation of an employee who travels a lot around the world for work reasons, and it is difficult to count how long he has actually been in Spain, reaching less than 183 per year. However, as the reason for his frequent trips has been promoted by a Spanish company with headquarters and all its offices in Spain, this worker has the core of his interests in the Spanish territory. Therefore, it is a tax resident in Spain.
If you need further advice, OMD Consulting, a company that collaborates with Time&Home, can offer it to you.
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