Residency is based on fact and not choice. An individual becomes resident in Spain for tax purposes if:
- He spends more than 183 days in Spain during one calendar year. Residence then commences on the morning of the 184th day.
- He arrives in Spain with the intention of residing there indefinitely. Residence then commences from the date of arrival.
- His centre of vital interests is Spain (i.e. the establishment of a business).
- Unless proven otherwise, an individual is presumed to be a Spanish resident if his spouse lives in Spain and he is not legally separated, even though he may spend less than 183 days a year in Spain.
In the case of tax residence automatically being ascribed despite not having been in Spain for a period greater than 183 days it is possible to rebut the inference especially if protection is being sought under UK or Irish Tax treaties.
As a resident of Spain an individual will be liable for income, capital gains and inheritance tax on his worldwide assets. Non residents are only normally subject to Spanish taxes on Spanish generated income or Spanish based assets.
Summary
Tax |
Resident |
Non-resident |
Worldwide |
Spanish income only |
|
Worldwide |
Spanish assets only |
|
Worldwide |
Spanish property only |
